Siemens Limited

Industrials — Specialty Industrial Machinery · NSE

₹3,624.00−₹44.00 (−1.20%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, negative free cash flow, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of Siemens Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Siemens Limited, a technology company, industry, infrastructure, mobility, and healthcare business in India and internationally. It operates through Smart Infrastructure, Mobility, Digital Industries, and Others segments.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees6,346

Annual revenue₹17,364 Cr

How does it make money?

Turns over ₹17,364 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 6,346 employees supports ₹2.74 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.74 Cr

Who are its competitors?

The closest listed comparisons in its industry are ABB INDIA LIMITED, LARSEN & TOUBRO LTD., HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 16.5% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE17.1%

What is the outlook?

21 analysts covering the stock expect revenue to grow about 24.3% and earnings to grow about 30.7% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+24.3%

Est. earnings growth+30.7%

Analysts21

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +9% while net margin moved +25% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+9%

Margin effect+25%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 88.8x is demanding — it needs sustained high growth to justify
✗ P/E is 74% above its own historical median of 51.0x — expensive by its own standards
✗ P/B of 9.32x is a steep premium to book

Quality vs. Valuation

Company Quality

67/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

23/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

88.8x

4Y Median

51.0x

47 monthly readings · mean 54.5x · range 35.6x–82.1x

Sector Median

43.5x

median of 3 sector peers

⚠️Current valuation is approximately 74% above its 4y median of 51.0x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 104% above the peer median of 43.5x.

vs. its own history

Expensive

51.0x median over 47 months · +74%

vs. sector peers

Expensive

43.5x median of 3 peers · +104%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

49.1x

PEG

8.15

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 20% over 3 years.
Return on capital is rising
ROCE has improved from 14.4% to 16.5%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 1 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 2.21x — earnings must service borrowings before shareholders see anything.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹6 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 20% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 2.21x. Interest is payable whether or not the business has a good year.
The price already assumes success
The stock trades 74% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Growth barely outpaces inflation
Revenue compounding at 3.0% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 13%✓ 14.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹6 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 4% a year✗ 3.0% CAGR
Latest reported year was 14.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 13%✓ 16.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 1 neutral · 4 weak

Market Cap

₹1.29 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

88.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

9.32x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹40.79

Profitable

Profitable on a per-share basis

ROE

15.9%

Strong

Strong capital efficiency

ROCE

16.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.21x

High

High leverage

Revenue Growth (YoY)

14.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

406.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.50%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹6 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

53.9x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

7.5%

Average

Average margins

Net Margin

19.0%

Good

Strong bottom-line conversion

Current Ratio

2.54

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.57

Defensive

Steadier than the market

52W Range Position

60%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

3766.2 / 3884.4

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

38.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY25	3Y CAGR
Revenue	₹15,874 Cr	₹19,279 Cr	₹14,938 Cr	₹17,364 Cr	+3.0%
EBITDA	₹2,144 Cr	₹2,920 Cr	₹2,704 Cr	₹2,587 Cr	+6.5%
EBITDA Margin	13.5%	15.1%	18.1%	14.9%	—
PAT (Net Profit)	₹1,543 Cr	₹1,961 Cr	₹2,717 Cr	₹2,104 Cr	+10.9%
EPS	₹43.33	₹55.06	₹76.33	₹59.14	+10.9%
ROE	13.3%	15.0%	17.7%	15.9%	—
ROCE	14.4%	18.9%	16.1%	16.5%	—
Total Debt	₹182 Cr	₹175 Cr	₹279 Cr	₹145 Cr	-7.2%
Free Cash Flow	₹823 Cr	₹1,198 Cr	₹1,312 Cr	-₹6 Cr	—

🟢 Revenue has grown at 3.0% a year over 3 years.

🟢 EBITDA has grown at 6.5% a year over 3 years.

🟢 EBITDA Margin has risen from 13.5% to 14.9% over 3 years (+1.4 pts).

🟢 PAT (Net Profit) has grown at 10.9% a year over 3 years.

🟢 EPS has grown at 10.9% a year over 3 years.

🟢 ROE has risen from 13.3% to 15.9% over 3 years (+2.6 pts).

🟢 ROCE has risen from 14.4% to 16.5% over 3 years (+2.0 pts).

🟢 Total Debt has shrunk at 7.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹823 Cr to -₹6 Cr.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹19,989 Cr

Total Liabilities

₹6,751 Cr

Cash & Equivalents

₹2,150 Cr

Operating Cash Flow

₹375 Cr

Capex

-₹380 Cr

Shareholding (proxy)

Institutional Holding

10.8%

Insider Holding

76.9%

Corporate Actions

Next Earnings

04 Nov 2026

Dividend Rate

₹18

Ex-Dividend Date

29 Jul 2026

Analyst Consensus

Recommendations

9 Buy · 12 Hold · 5 Sell

Target Price (Mean)

₹3,966.08

+9.4% vs CMP

Target Range

₹3,000 – ₹4,850

Peer Comparison

Company	P/E	ROE
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 positive2 mixed3 general

SIEMENS Outlook for the Week

Equitypandit, 09 Oct

Siemens Energy India Share Price decline: valuation view

Univest, 15 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Siemens Healthineers (XTRA:SHL) Joins Cancer Think Tank, Is The Stock 9% Undervalued?

Simply Wall Street, 18 Oct

Siemens Energy zooms 12% on Q3 beat; MOFSL raises target, sees 26% upside

Business Standard, 07 AugAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Market Trading Guide: Siemens among 2 stock recommendations for Tuesday

The Economic Times, 24 Aug

Post Q4 Showdown: Hitachi Energy vs Siemens Energy, Which Is The Best Power Infra Stock in 2026 For Investors?

Goodreturns, 12 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Profitability

MiddlingFinancial Health · Growth · Risk

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; Revenue growth stays above 4% a year · see Key things to watch ↑