Siemens, the German multinational conglomerate, has been making headlines lately due to its recent contract to provide electrolyzers to HIF Global, a manufacturer of Efuels. This fascinating development has sparked concerns about Siemens’ stock prospects in addition to showcasing its technological prowess. Investors are interested in Siemens’ stock performance and its expected share price growth over the next few years.
In this post, we’ll explore Siemens in more detail and consider their latest financial results. In order to estimate the company’s share price projection from 2023 to 2030, we will also examine its growth potential, market trends, and technological developments.
Thus, if you’re interested in Siemens as a prospective investment, read on to find out more.
Q4 Results of Siemens
Recently, Siemens released its Q4 earnings, let us take a brief look at them:
- Siemens’ net profit increased by 38.7% to 471.1 crores for the quarter that ended in March 2023. This contrasts with a net profit of 340 crore in the comparable quarter of the previous fiscal year. From 4,230 crore in the year-ago quarter to 4,857.8 crore in the current quarter, the revenue from operations increased by 14.3%.
- Earnings before interest, taxes, depreciation, and amortization (EBITDA), which is how operational profit is determined, increased by 17.2% to 621.2 crores from 530 crores, with margins of 12.8%. Additionally, Siemens received new orders totaling 31,151 crores in the third quarter, including a 25,455 crore purchase for a 9,000 HP (horsepower) locomotive project. As a result, it claimed that new orders increased by 8.1% on a comparable basis during the reviewed quarter.
- “The Indian Railways have continued to issue sizable tenders, and capital development in infrastructure, driven by Central Government investment, has persisted. According to Sunil Mathur, managing director and chief executive officer of Siemens, private sector capital expenditures are mostly made in the steel, cement, data centers, intralogistics, and e-vehicles industry categories.
Latest news about Siemens
➤ The Board of Directors has reappointed Mr. Sunil Mathur as the Managing Director and Chief Executive Officer of Siemens for an additional five years, effective January 1, 2024, based on the proposal of the Nomination and Remuneration Committee (NRC).
➤ The board has reappointed Dr. Daniel Spindler as the company’s executive director and chief financial officer for one additional year.
➤Siemens and Paessler deepened their partnership in the industrial sector at the Hannover Fair in April 2023 when it was confirmed that Paessler PRTG is a crucial component of Siemens’ Lifecycle Management Suite (LMS).
➤A new onshore wind turbine made by Siemens Gamesa was constructed with US weather conditions in mind.
According to the Spanish-German wind power juggernaut, its custom-made US onshore wind turbine “has the right design profile to maximise revenues by harnessing the wind conditions most common in the US and features a design lifetime longer than the industry standard.” The typical lifetime of a wind turbine is 20 years; the SG 44.164 lifetime is 25 years.
➤Block Imaging will be purchased by CommonSpirit Health and Siemens Healthineers. The increased demand for multi-vendor imaging products and services from American hospitals, health systems, and other care facilities will be supported by this new purchase, which will offer more environmentally friendly solutions.
➤The Siemens CEO has committed to increase the company’s market share in China, stating that the country’s economy is essential to the industrial conglomerate’s ability to innovate and thrive.
➤Concerns have been voiced by at least four brokerages over Siemens India’s decision to sell its gear motor business to its parent company, including Nomura, Jefferies, Haitong, and IDBI Capital. The corporation sold the subsidiary at a “steep discount,” according to analysts at these firms, which is against the interests of domestic public shareholders.
You can buy Siemens shares from the following trading platforms:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| May 2023 | ₹3,638.84 | ₹2,337.57 |
| June 2023 | ₹3,646.61 | ₹2,805.08 |
| July 2023 | ₹4,375.93 | ₹3,366.10 |
| August 2023 | ₹4,813.53 | ₹3,702.71 |
| September 2023 | ₹5,054.20 | ₹3,887.85 |
| October 2023 | ₹4,813.53 | ₹3,702.71 |
| November 2023 | ₹5,294.88 | ₹4,072.98 |
| December 2023 | ₹5,930.26 | ₹4,561.74 |
According to the table, the Siemens share price is expected to exhibit a bullish uptrend throughout 2023, with steady growth percentages in the range of 30-40%. The maximum price of the Siemens share is predicted to be around ₹5,930.26 in December 2023, while the minimum price is expected to be around ₹2,337.57 in May 2023. This implies that the stock price may experience some volatility during the year, with occasional dips and surges.
Investors who are considering investing in Siemens stock should keep in mind that stock price predictions are based on a number of variables and factors that may change over time. Nonetheless, the positive trend seen in this prediction indicates that Siemens may be a good investment opportunity for those looking for long-term growth potential in the coming years.
| When | Maximum Price | Minimum Price |
| January 2024 | ₹6,242.38 | ₹4,801.83 |
| February 2024 | ₹7,013.91 | ₹5,844.93 |
| March 2024 | ₹7,383.07 | ₹6,002.49 |
| April 2024 | ₹6,711.88 | ₹5,162.98 |
| May 2024 | ₹5,593.23 | ₹4,302.49 |
| June 2024 | ₹6,711.88 | ₹5,162.98 |
| July 2024 | ₹5,705.10 | ₹4,422.56 |
| August 2024 | ₹6,275.61 | ₹4,980.64 |
| September 2024 | ₹6,589.39 | ₹5,068.76 |
| October 2024 | ₹7,752.22 | ₹5,963.25 |
| November 2024 | ₹8,139.83 | ₹6,261.41 |
| December 2024 | ₹8,302.63 | ₹6,386.64 |
The table indicates that Siemens stock is expected to maintain its upward momentum throughout 2024, with an average target price estimated to be around ₹6,500. This suggests a strong upside potential for the stock, with maximum price targets ranging from ₹8,302.63 in December 2024 to ₹5,162.98 in April 2024. The minimum price target is predicted to be around ₹4,302.49 in May 2024, implying that there may be some volatility in the stock price during the year.
Overall, based on the share price target predictions for 2024, it appears that Siemens stock may be a good investment opportunity for investors seeking long-term growth potential.
| When | Maximum Price | Minimum Price |
| January 2025 | ₹8,468.68 | ₹6,514.37 |
| February 2025 | ₹8,914.40 | ₹6,857.23 |
| March 2025 | ₹9,360.12 | ₹7,200.09 |
| April 2025 | ₹8,357.25 | ₹6,428.65 |
| May 2025 | ₹7,597.50 | ₹5,844.23 |
| June 2025 | ₹8,357.25 | ₹6,428.65 |
| July 2025 | ₹7,959.28 | ₹6,122.53 |
| August 2025 | ₹8,290.92 | ₹6,377.63 |
| September 2025 | ₹8,705.47 | ₹6,696.51 |
| October 2025 | ₹9,227.80 | ₹7,098.30 |
| November 2025 | ₹9,873.74 | ₹7,595.19 |
| December 2025 | ₹10,071.22 | ₹7,747.09 |
According to the data presented in the table, the share price of Siemens is expected to continue its upward trend in 2025. The average target price for Siemens in 2025 is ₹8,647.95, which indicates a potential return of about 30% from the current price. However, the bearish market sentiment may pull down the share prices to a minimum of ₹6,514.37, which is a 13% drop from the current price.
The maximum target price for the stock in 2025 is ₹10,071.22, which suggests an upside of almost 57%. Investors should take note of the potential risk factors and make informed investment decisions based on their risk tolerance and investment goals.
Overall, the outlook for Siemens in 2025 is positive, with a potential for high returns, albeit with some degree of volatility.
| Year | Maximum Price | Minimum Price |
| 2026 | ₹7,049.85 | ₹4,934.90 |
| 2027 | ₹5,992.37 | ₹4,194.66 |
| 2028 | ₹10,786.27 | ₹7,550.39 |
| 2029 | ₹22,156.68 | ₹15,509.67 |
| 2030 | ₹24,674.48 | ₹17,272.14 |
According to the provided data, Siemens share price is expected to have a bearish trend in the year 2026, with a maximum price of ₹7,049.85 and a minimum price of ₹4,934.90. However, the share price is predicted to rebound in 2027, with a maximum price of ₹5,992.37 and a minimum price of ₹4,194.66.
In 2028, the share price is expected to surge, with a maximum price of ₹10,786.27 and a minimum price of ₹7,550.39. Similarly, in 2029, the share price is expected to have a significant upside potential, with a maximum price of ₹22,156.68 and a minimum price of ₹15,509.67.
In the year 2030, the share price is predicted to maintain its bullish momentum, with a maximum price of ₹24,674.48 and a minimum price of ₹17,272.14.
Overall, the data suggests that Siemens share price is likely to experience significant volatility and fluctuations in the upcoming years, presenting both risks and opportunities for investors.
Financial Condition of Siemens: Last 5 years
| Narration | Sep-18 | Sep-19 | Sep-20 | Sep-21 | Sep-22 |
| Sales | 12,795.30 | 13,083.90 | 9,946.50 | 13,198.50 | 16,137.80 |
| Expenses | 11,468.00 | 11,594.00 | 8,943.80 | 11,746.00 | 14,278.20 |
| Operating Profit | 1,327.30 | 1,489.90 | 1,002.70 | 1,452.50 | 1,859.60 |
| Other Income | 280.10 | 398.40 | 314.90 | 320.90 | 486.60 |
| Depreciation | 197.70 | 198.90 | 252.10 | 297.40 | 317.10 |
| Interest | 8.20 | 11.50 | 29.50 | 24.30 | 36.30 |
| Profit before tax | 1,401.50 | 1,677.90 | 1,036.00 | 1,451.70 | 1,992.80 |
| Tax | 500.30 | 578.50 | 267.40 | 362.90 | 449.80 |
| Net profit | 901.20 | 1,099.40 | 768.60 | 1,088.70 | 1,542.90 |
| EPS | 25.31 | 30.87 | 21.58 | 30.57 | 43.33 |
| Price to earning | 37.35 | 49.11 | 58.59 | 69.65 | 63.95 |
| Price | 945.15 | 1,516.05 | 1,264.50 | 2,129.40 | 2,770.80 |
| RATIOS: | |||||
| Dividend Payout | 27.65% | 22.67% | 32.42% | 26.16% | 23.07% |
| OPM | 10.37% | 11.39% | 10.08% | 11.01% | 11.52% |
Siemens’ financial statement over the last five years shows a mixed picture of the company’s growth. From FY2018 to FY2019, there was a 2.2% increase in revenue growth, but expenses also increased by 1.0%.
The company’s net profit grew by 22.1% during this time, from ₹901.20 crore to ₹1,099.40 crore, and EPS increased from ₹25.31 to ₹52.99 in May 2023. The dividend payout ratio decreased from 27.65% to 22.67%, indicating that the company retained more earnings for reinvestment in growth opportunities.
However, the following year, FY2020, saw a decrease in revenue by 23.8% and net profit by 29.1%, which can be attributed to the COVID-19 pandemic’s economic impact. But, the company managed to keep its operating profit margin at around 10% throughout the five-year period, except for FY2021, when it increased to 11.01%.
Despite the pandemic’s challenges, Siemens bounced back in FY2021 with a 26.9% increase in revenue growth and a 41.8% increase in net profit, from ₹1,088.70 crore to ₹1,542.90 crore. The EPS also grew by 42.2%, from ₹30.57 to ₹43.33.
Siemens’ share price has shown significant growth during this period, from ₹945.15 in FY2018 to ₹3540.80 in FY2023. However, the price-to-earnings ratio is 66.82 in May 2023
Overall, the company has demonstrated its resilience and ability to adapt to market challenges while maintaining steady growth in key areas, such as revenue and profit, over the last five years.
ICICI Direct is optimistic about Siemens and has advised investors to purchase the stock, with the price reaching up to Rs 3660.
Siemens got a buy call from Axis Securities with a target price of Rs 3685.
In its research report, Prabhudas Lilladher advised add rating on Siemens with a target price of Rs 4018.
FAQS
It is anticipated that Siemens per share price will increase to ₹5,930.26 by the end of 2023.
The share price target of Siemens for 2025 might be around ₹10,071.22.
Is Siemens free from all debts?
Yes, Siemens is almost debt free.
Comment on the dividend payout of Siemens.
The company has kept up a generous dividend of 27.2%.
The per share price of Siemens might reach around ₹24,674.48 by the end of 2030.
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Conclusion
In conclusion, Siemens has shown steady growth over the past five years with a revenue growth rate of 7.4% and a profit growth rate of 10.2%. The company’s PAT has also increased by 71% during this period. With the predicted growth in the coming years, it is expected that Siemens shares will perform well in the stock market.
The projected share price target for 2023 is ₹5,930.26, while for 2030, it is ₹24,674.48. This represents a potential return of 316% in just seven years. In addition, Siemens has a dividend payout ratio of around 23%, making it an attractive investment for income-seeking investors.
Therefore, considering the company’s consistent income growth and strong financial performance, Siemens shares are definitely worth buying for long-term investment.
What did we learn?
