In a fresh research report reflecting confidence in its long-term growth trajectory, Prabhudas Lilladher has reiterated a BUY call on Siemens Limited. The brokerage assigned a revised target price of Rs 6,110 per share, reflecting a 17% upside from current levels. Siemens continues to be a standout performer in India’s industrial and automation ecosystem, underpinned by a diversified order book, increasing demand across mobility, smart infrastructure, and digital industries, and strong earnings momentum. Priced attractively on future cash flows and embedded optionality, the company remains a high-conviction long-term pick in India’s capital goods sector.

Strong Structural Growth Across Segments

The core strength of Siemens lies in its presence across multiple high-growth sectors. The company continues to enjoy robust demand in Mobility, Smart Infrastructure, Energy, and Digital Industries.

1. Smart Infrastructure: Government capex on electrification and real estate digitization is creating demand for advanced grid systems and smart city integrations.

2. Mobility: Rail and metro electrification remain secular growth themes, with Siemens being a preferred technology partner in India's transportation modernization.

3. Digital Industries: Industrial automation and Industry 4.0 initiatives are driving investments in digital control systems, where Siemens has a leading market position.

Q1FY25: Healthy Earnings and Margin Resilience

Siemens’ Q1FY25 performance reinforces its operational resilience.

Revenue growth came in strong at 17.2% YoY, backed by execution strength in digital industries and smart infrastructure. The company posted an EBITDA margin of 11.6%, reflecting both operational efficiency and favorable product mix.

The management has guided for further margin expansion as the company scales up high-margin digital and mobility solutions.

Order Book Momentum: Growth Visibility Ahead

Siemens’ order pipeline remains robust, with a 32% YoY growth in order inflow. The total order book now stands at Rs 30,060 crore, offering multi-quarter execution visibility.

Large government tenders in railways, energy grid automation, and infrastructure upgradation are likely to bolster the backlog further. Siemens also expects uptick in private capex, particularly in steel, cement, and logistics, to fuel order growth.

Valuation and Target Price

The brokerage has assigned a BUY rating with a revised price target of Rs 6,110 (earlier Rs 5,400), based on 65x FY26E earnings, justified by:

Structural growth potential

Strong return ratios (ROCE consistently above 20%)

Balance sheet strength with near-zero debt and strong cash position

Siemens is trading at FY26E P/E of 55.6x, leaving reasonable room for upside given the high quality of earnings and leadership in automation technologies.

Fibonacci Levels: Medium-Term Outlook

Using the recent high of Rs 6,240 and swing low of Rs 5,060, key Fibonacci retracement levels for Siemens are:

These levels serve as support and resistance zones for medium-term trend followers and momentum investors.

Technical Analysis: Candlestick and Support-Resistance

On the daily chart, Siemens has formed a Bullish Harami near its 50-day moving average, suggesting potential upside reversal. RSI is nearing 54, indicating neutral momentum with room to run.

Key support levels lie at Rs 5,280 and Rs 5,050, while resistance is seen at Rs 5,820 and Rs 6,100.

Traders can accumulate on dips with a stop-loss below Rs 5,050.

Competitive Landscape

Siemens operates in a competitive space, with peers including:

L&T: A diversified engineering giant, L&T is a strong player in infra, defence and EPC, but Siemens leads in industrial automation.

ABB India: Close competitor in electrification and robotics. While ABB is asset-light, Siemens has deeper local manufacturing footprint.

Despite competition, Siemens’ edge lies in its R&D focus, high-margin product mix, and multinational parentage.

Investment Outlook and Strategy

Prabhudas Lilladher's call aligns with long-term secular growth in India's electrification, automation, and infrastructure landscape. Siemens offers a compelling mix of quality, visibility, and sector leadership.

For long-term investors, it presents an opportunity to accumulate in the Rs 5,200–5,400 range, with a price target of Rs 6,110 and beyond.

Near-term traders can look for a breakout above Rs 5,820 with potential upside toward Rs 6,100, using a trailing stop-loss at Rs 5,250.

Disclaimer: Investors are encouraged to conduct their own research or consult financial advisors before making investment decisions.