Siemens stock jumps over 5% after company receives order worth around Rs 20,000 crore

Siemens share price: The automotive company is the lowest bidder to produce 1,200 electric locomotives and the project’s estimated cost is around Rs 20,000 crore. The locomotive will be produced and maintained in Dahod, Gujarat.

Siemens share price: According to the report, Siemens’ project order would be substantially higher than the current order backlog of Rs 17,200 crore.

Siemens share price: Siemens shares jumped more than 5 per cent after the company emerged as the lowest bidder (L1) for the 9000 HP Electric Locomotives project in Dahod, Gujarat, India.

The stock today opened at Rs 2,822.05 apiece and quoted Rs 2,914.85 apiece, which was up by 5.47 per cent on NSE as of 2:32 pm.

The company which provides transport solutions and has had India presence for over seven decades emerged as the lowest bidder for production of 1,200 electric locomotives and the project’s estimated cost is around Rs 20,000 crore. The locomotive will be produced and maintained in Dahod, Gujarat.

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The Indian Railways had issued the tender in April and Prime Minister Narendra Modi had laid the foundation stone for the production of a 9000-horsepower electric locomotive.

This project has increased the company’s order book by 116 per cent. The total order backlog till date is Rs 17,183 crore and total order backlog after this order is Rs 37,138 crore.

Brokerages remain positive on the stock

Broker firm Macquarie has maintained an Outperform rating with a price target of Rs 3120 apiece.

According to the report, Siemens’ project order would be substantially higher than the current order backlog of Rs 17,200 crore.

Macquarie expects a robust order inflow for companies in India’s mobility segment order inflow to continue at 23 per cent CAGR over FY21–25E.

ICICI Securities has maintained a Buy rating on the stock with a revised target price of Rs 3,011 (earlier: Rs 3,097) per share.

According to the report, the government's impetus on infrastructure spending continues to translate into strong capital expenditure in the country, followed by investments in smart and green infrastructure, electrification, decarbonisation technologies, automation and digitisation.

The brokerage firm believes that the company is in a strong position to leverage these growth opportunities given its capabilities across the verticals.

On NSE, the stock made an intraday high of Rs 2,948 apiece. The 52-week range of the stock is between Rs 3,138.50 to Rs 2,150.10. The stock is trading 6 per cent lower than its 52- week high.

Year to Date (YTD) the stock surged more than 24 per cent. In the past six months the stock rallied almost 25 per cent.