Siemens shares tumbles 2% if Q3 results disappoint, but brokerage companies increase the target price. This is why

Siemens LTD shares tumbled 2.16% to the low point of their day of RS 2,965.20 on the BSE on Monday after the company had reported a 3.1% on an annual basis (yoj) in his win after tax (Pat) for the quarter of June (Q3FY2025). Pat arrived at RS 423 Crore, compared to RS 437 Crore in the same period last year, attributing the company to reduce other income

In the meantime, sales from the activities increased by 15.5% to RS 4,347 Crore, compared to RS 3,763 Crore in the corresponding quarter last year, while the profit per share (EPS) was on RS 11.89, a decrease of 3.1% of RS 12.28 a year ago.

Despite the drop in profit, operational performance showed robust growth. New orders rose 13% yo -yo of RS 5,680 crore, while the ordering arrears rose by 8% to RS 42,845 Crore.

The profit of the activities grew by 9.2% JoJ to RS 454 Crore.

This is what brokerage companies said:

Motilal Oswal: Neutral | Target price: RS 3,300

Motilal Oswal maintained his ‘neutral’ rating on the shares, with a target price of RS 3,330.Siemens LTD placed weaker profitability as a result of lower margins and reduced other income, despite a strong version in smart infrastructure and mobility. Weak margins in mobility dragged the overall results, although the intake of the order increased by 13% to RS 17,500 crore, including large railroad orders. The company transferred RS 2,400 Crore to Siemens Energy pending cash and received approval to change its financial year in October year, making FY26 18 months. The prospects focus on recovery in the inflow and marveling improvement, especially in mobility and digital industries.

Avendus: Reduce Target price: RS 2,879

Avendus has maintained his ‘reduction’ rating on Siemens, with a slight increase in the target price to RS 2,879 compared to RS 2,859.

The brokerage said that the demand for views are mainly supported by the public capex, while the private capex remains filled in. It noted that vertical specific challenges will probably cause margin contraction.

The current order book of Siemens is on RS 42,800 Crore, with the turnover expected to grow with a CAGR of around 8% in the next two years. However, rising competition and new delivery in certain categories are expected to put pressure on the EBIT margins. The EBITDA margins are expected to be around 120 basic points of up to 12.8% contracts by FY26E.

Antiques: buy | Target price: RS 3.892

Antique stock broking has maintained its ‘buy’ rating on Siemens, increasing the target price to RS 3,892 of RS 3,179.

The brokerage said that the operational performance was in line and that ordering the momentum remains strong. While the growth output remains positive, the FY25/FY26/FY27 estimates trimmed with 8%, 6%and 6%respectively, because of the other income with a lower than expected.

Valuation has been rolled to FY27E income, with the output several revised to 55x of 60x earlier. The target price restraint reflects a healthy order pipeline and a strong long -term beizer.

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