Siemens India witnessed a significant 7% surge in its share price on Wednesday, March 26, following the National Company Law Tribunal’s (NCLT) approval of its demerger with Siemens Energy India Ltd. This move marks a major milestone for the company and its investors. But what does it mean for you? Should you buy, hold, or sell your Siemens India share price holdings? Let’s break it down.
Understanding the Siemens Demerger
The Siemens India share price jump comes after the green light for its energy business demerger. As per the equity allotment ratio, shareholders will receive one equity share of Siemens Energy India for every Siemens share they hold.
Key Dates to Remember
Record Date: April 7, 2025
Appointed Date: March 1, 2025
Demerger Effective Date: March 25, 2025
With Siemens Energy India set to list separately on stock exchanges, this strategic move is expected to unlock value for investors.
Leadership Changes Post-Demerger
With the demerger, Siemens India is also experiencing leadership restructuring.
Guilherme Vieira De Mendonça takes over as Managing Director and CEO of Siemens Energy India.
Harish Shekar, previously the finance head of the energy business, steps in as Executive Director and CFO.
Globally, Siemens AG had already demerged its energy business back in 2020. This Indian demerger aligns with the parent company’s strategy.
Siemens Q3 Results: A Mixed Bag
Siemens Ltd. released its Q3 financial results, and here’s a snapshot:
Positive Takeaways:
✔ Net Profit Growth: 21.5% YoY increase, reaching ₹614.6 crore from ₹505.7 crore. ✔ New Orders Growth: ₹6,245 crore, reflecting an 18% increase from last year.
Concerns:
❌ Revenue Decline: Down by 3.3% to ₹3,587.2 crore from ₹3,709.5 crore YoY. ❌ EBITDA Fall: Dropped 11.5% to ₹401 crore from ₹453 crore. ❌ Energy Segment Revenue Drop: ₹1,485 crore, down from ₹1,518 crore last year.
While Siemens continues to bag new orders, revenue and EBITDA margins took a hit, indicating a challenging phase for the company.
Should You Buy or Sell Siemens India Share?
Now, the big question—should you buy, hold, or sell Siemens India share price at this juncture?
Brokerage Ratings & Target Price
Leading brokerage firm Elara Capital has given a ‘BUY’ rating for Siemens Ltd. with a target price of ₹5,940—indicating a potential 23% upside from current levels.
Reasons to Stay Bullish:
✅ Siemens has underperformed the Nifty by 36% in the last three months, making it an attractive buy. ✅ Expected earnings CAGR of 16% in FY24-27E. ✅ Strong ROE of 18% projected in FY25-27E. ✅ Siemens stands to benefit from the ongoing public and private capital expenditure cycle. ✅ Its diversified portfolio and technological leadership position it well for future growth.
Risks to Consider:
⚠ Execution Delays: Delay in locomotive order execution is a concern. ⚠ Lower Budgetary Allocation: Infrastructure spending cuts could impact future order inflows. ⚠ Revenue Growth Slowdown: Current financials indicate some challenges in momentum.
Siemens Energy India Listing – What to Expect?
With Siemens Energy India set for a separate listing, investors are eyeing potential value unlocking. The company specializes in power generation and renewable energy solutions, which could be a growth driver amid India’s push for sustainable energy.
The listing will allow investors to directly invest in Siemens Energy India while existing Siemens Ltd. shareholders automatically gain exposure through the 1:1 equity allotment.
Final Verdict – Should You Invest?
Siemens remains a solid investment choice, especially for long-term investors. While short-term challenges exist, the company’s strong fundamentals, diversified operations, and alignment with India's growth story make it a compelling buy. If you already hold Siemens India share price, staying invested seems like a wise choice, and adding more at dips could be a strategic move.
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Conclusion
The recent NCLT approval for Siemens’ energy business demerger has caused a buzz in the stock market, sending Siemens India share price soaring. With separate listing plans for Siemens Energy India, leadership changes, and strong long-term growth potential, Siemens Ltd. is set for an interesting trajectory. Despite revenue concerns, brokerages remain optimistic, making it a stock to watch. As always, do your research, consult with financial advisors, and invest wisely!
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