Rs 10/Share Dividend: Buy Large Cap Engineering Stock, TP Rs 4600: Motilal Oswal

Leading brokerage house Motilal Oswal has assigned buy rating to large cap stock Siemens Ltd with target price of Rs 4600 per share. Current market price of Siemens share on BSE is Rs 3961.00 per share with intraday fall of 0.09%. Siemens shares rallied 12% in last 1-month and gained 40% year-to-date. If you buy Siemens stock at current market price of Rs 3961.00 apiece, you can obtain likely upside of 16.01%. Siemens Ltd has a market capitalisation of Rs 1,41,059.23 crore. Check details below

Siemens Stock Performance & Return Over Years: Last trading price of Siemens share BSE is Rs 3961.00 apiece. Its 52-week high price is Rs 4244.55 apiece and 52-week low price is Rs 2775.30 apiece, respectively. Siemens shares soared 7% in last 6-months, gained 40% YTD, soared 38% in last 1-year, jumped 67% in last 2-years, and offered return of 162% in last 3-years. In last 5-years, Siemens shares surged 299%.

Siemens Declared Dividend: As per the regulatory filing of the company issued on November 28, "recommended a dividend of Rs. 10/- per Equity Share of Rs. 2/- each (500%) for the Financial Year ended 30th September, 2023. The dividend, as recommended by the Board of Directors, if declared at the ensuing Annual General Meeting (AGM) of the Company, would be paid from Friday, 16th February, 2024."

Siemens Valuation: According to Motilal Oswal, "The stock is currently trading at a P/E of 51.1x/42.9x on FY25E/FY26E. A potential demerger and listing of Siemens's India Energy segment should open avenues for value-unlocking over the next 2-3 years. We continue to value it at 55x P/E on twoyear forward earnings and maintain our BUY rating with a TP of INR4,600."

Siemens Financials: The company on November 28 declared a growth of 49.8% year-on-year (YoY) in its net profit to Rs 571.6 crore for the 4th quarter ended September 30,2023. It is significant to note here that Siemens follows Oct-Sept financial year. It announced its net profit at Rs 381.7 crore in the similar quarter last year, as per its BSE filing. Its revenue from operations rose 24.7% to Rs 5807.7 crore as against Rs 4,657.1 crore in the same quarter of last fiscal. Siemens declared a dividend of Rs 10/- per equity of Rs 2/- each (500%) for the FY ending Sept 30, 2023. It announced its EBITDA, at operating level at Rs 700.2 crore, up 35.7% for the 2nd quarter of current fiscal as compared to Rs 515.9 crore in the corresponding quarter of last fiscal. The company's EBITDA margin announced at 12.1% for the quarter under consideration as against 11.1% in the corresponding period of last fiscal.

Siemens About: Siemens has been a strong partner to India - right from the setting up of the Indo-European telegraph line in 1867. Siemens offers integrated solutions for India's sustainable future - efficient manufacturing, integrated automation, intelligent infrastructure, complete mobility and sustainable energy, according to its official website.

Disclaimer:

The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.