This industrial stock secures a Rs 20,000 crore order from Indian Railways!
The company operates in multiple business areas, including power generation and distribution, intelligent infrastructure for buildings and distributed energy systems, and automation and digitalisation in the process and manufacturing industries.
On December 7, the shares of Siemens Ltd surged 5 per cent and closed at Rs 2905.15. The stock opened at Rs 2806 and made an intraday high and low of Rs 2948.1 and Rs 2806, respectively. The company has a market capitalisation of Rs 103618.53 crore, while the stock is trading at a PE multiple of 64.36x.
The stock is rallying as it receives fresh orders worth Rs 20,000 crore to produce 9000 HP Electric Locomotives. The company was the lowest bidder for the tender placed by Indian Railways. These locomotives will be manufactured and maintained in Dahod, Gujarat.
Siemens Ltd operates in multiple business areas, including power generation and distribution, intelligent infrastructure for buildings and distributed energy systems, and automation and digitalisation in the process and manufacturing industries.
For Q2FY23, on a consolidated basis, the company revenue stood at Rs 4,657 crore, representing a YoY growth of 11.57 per cent, as against Rs 4,174 crore in Q2FY22. However, for the same quarter, the net profit doubled from Rs 320 crore in Q2FY22 to Rs 652 crore.
As per the FY22 period ending, the company has an ROE and ROCE of 11.13 per cent and 15.76 per cent, respectively.
About the shareholding pattern, 75 per cent of the company’s stake is owned by the promoters, 6.03 per cent by FIIs, 9.52 per cent by DIIs, and the rest 9.44 per cent by non-institutional investors.
The government's push for infrastructure spending with investments in smart and green infrastructure, electrification, decarbonisation technologies, automation, and digitisation are the factors beneficial for the company like Siemens Ltd.