Siemens shares slip 9%, record sharpest intraday fall in over six months

Siemens share price: Earlier, on June 4, 2024, Siemens share price had tanked 20 per cent in intraday trade

Siemens share price: Siemens share price sank up to 9.4 per cent to Rs 6,912 per share on the BSE on Friday, December 20, 2024. The stock of the heavy electrical equipment company recorded its sharpest intraday fall in over six months. 

Earlier, on June 4, 2024, Siemens share price had tanked 20 per cent in intraday trade.

  In the four trading days, the stock price of the company has declined 13 per cent from a level of Rs 8,026. It had hit a record high of Rs 8,129.95 on October 16, 2024.

  Siemens is a technology company focused on industry, infrastructure, transport as well as transmission and generation of electrical power.  The company, in an investor presentation today, said that the demerger of Siemens Energy is progressing and expects to complete the demerger & listing in calendar year 2025.

 

  However, the management of the multinational company, reportedly, said that while private capex in semiconductors, batteries, and electric vehicle (EV) segments looks decent, the overall capex hasn’t picked up well.

  "Traditional technologies are seeing slower investment. Besides, government orders (capex) were also slow in Q3," reports said quoting the company’s management. 

On the order pipeline, Siemens management said it is not participating in any line commutated converter (LCC)-based HVDC projects in India or globally. It, however, will target the voltage source converter (VSC)-based projects.

  At 1:55 PM, Siemens share price was trading 9 per cent lower at Rs 6,941 per share as against a 1 per cent decline in the benchmark BSE Sensex index. Volumes in the counter jumped over four-fold with around 22,000 shares having changed hands on the BSE as compared to 5,127 shares, on-average, over the past two weeks.

  Siemens Q4 2024 results

Siemens, which follows October-September financial year, reported a consolidated revenue growth of 11.3 per cent year-on-year (Y-o-Y) to Rs 6,460 crore in Q4, driven by growth in Mobility (up 23.9 per cent Y-o-Y), Energy (12.4 per cent Y-o-Y), Digital Industries (10.2 per cent Y-o-Y), Smart Infra (7.6 per cent Y-o-Y) and Portfolio companies (10.7 per cent Y-o-Y).

  Siemens' Ebitda grew 34 per cent Y-o-Y to Rs 940 crore with Ebitda margin expanding by 246bps Y-o-Y to 14.5 per cent aided by gross margin expansion and lower other expenses.

  Order inflows for Q4 rose 37 per cent Y-o-Y to Rs 6160 crore, driven by healthy demand across all business segments. Order book (calculated) stands at Rs 21,600 crore, excluding the Rs 26,300 crore locomotive order.

  Meanwhile, last month, Siemens announced an additional capex of Rs 100 crore for the capacity expansion of the Power Transformer factory at Kalwa (announced in November 2023) for expanding the range of its product portfolio envisaged earlier. The capex for Power Transformer factory in Kalwa is now expected to be Rs 460 crore (Rs 360 crore announced in November 2023), the company said.

  "We remain positive on Siemens from a long-term perspective given its strong and diversified presence across industries; product localisation; strong balance sheet; healthy public & private capex; and value-unlocking from demerger for Energy business," analysts at Prabhudas Lilladher had said in a results review report.

  The brokerage maintained its 'Accumulate' rating with a revised share price target of Rs 7,716 (up from Rs 7,362).

"Given the strength in order inflows and robust order backlog, we maintain a 'BUY' rating, with an increased target price of Rs 8,114," said those at HDFC Securities.

Siemens stock outlook

Today’s sharp decline in Siemens share price has pushed the stock below the lower end of the Bollinger Band on the daily chart, placed at Rs 7,145 per share.

  If the stock fails to conquer this level, it may fall to Rs 6,772 levels, which is its 200-daily moving average. Below this, the next support is placed at Rs 6,386 – the stock’s 50-week moving average.

  All momentum oscillators have bearish trends on daily and weekly charts, suggesting potential weakness ahead.