The shares of Siemens plunged 8 per cent to Rs 2,099 on the BSE in Thursday’s intra-day trade after the company reported a 2.6 per cent dip in its net profit for the September 2021 quarter on Wednesday.
The dip in the company’s shares price happens mainly on profit booking by the investors.
According to a BSE filing, Siemen’s consolidated net profit had stood at Rs 330.2 crore in the quarter that ended on September 30, 2020.
In a statement, the company said, "Profit after tax from continuing operations decreased by three per cent to Rs 323 crore, compared with Rs 333 crore for the corresponding quarter of the previous year, on account of an increase in raw material and logistics costs."
It reported an increase of 4.9 per cent in new orders from continuing operations at Rs 3,378 crore in the September 2021 quarter, against Rs 3,220 crore in the corresponding period last year. The company's order backlog stands at an all-time high of Rs 13,520 crore.
For the financial year 2020-21, Siemens reported an increase of 32.4 per cent in new orders, 33.1 per cent in revenue, and 40.3 per cent in profit after tax from continuing operations over the previous financial year.
Siemens Managing Director and CEO Sunil Mathur said in the statement, "We are delighted with the overall performance of the company. Our businesses have performed well under challenging conditions. We are now at pre-COVID-19 volume levels with a record order backlog."
Check what brokerage houses had said about Siemens share:
Motilal Oswal Financial Services Ltd
Strong order inflows are imperative for Siemens’ future outlook, given the rich valuations of the stock. The stock has sharply re-rated in anticipation of a capex recovery, but fails to account for margin pressure in the business. The company needs to consistently surprise on order intake to meet revenue growth expectations.
The brokerage house has given a buy call on Siemens with a target price of Rs 2,370 per share. The current price of Siemens Ltd is Rs Rs 2,142.35 per share. The period given by the analyst is intra day when Siemen price can reach defined target.
The investment firm had given a buy call on Siemens with a target price of Rs 2,360. However, the period given by analysts is one year when Siemens’s price can reach a defined target.
Nomura Financial Advisory and Securities (India) Pvt Limited
Siemens’ Ebitda margin missed the consensus estimate of 12.6 per cent, while higher commodity prices are one of the key downside risks for the stock. However, one bright spot in its otherwise muted earnings performance was its robust order book. The company's order inflows grew 5 per cent y-o-y to Rs 3,380 crore, but moderated sequentially.