Siemens shares in Wednesday's trade (November 27) zoomed up to 5 per cent after a better-than-expected Q2 financial performance. For the September quarter, the company's PAT or profitability logged 45.4 per cent to Rs 830.7 crore as against estimates of Rs 732 crore.

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Revenue at the company inched higher by 11.3 per cent to Rs 6,461.1 crore, while Zee Business research estimated the same at Rs 6,400 crore.

Also, operating profitability increased 34 per cent on-year to Rs 938.1 crore in the quarter under review, while the same was pegged at Rs 920 crore.

The margin also came in higher at 14.5 per cent against expectations of 14.4 per cent.

The company alongside the Q2 results also announced a Rs 12 per share dividend -equivalent to 600 per cent for the fiscal year ended September 2024.

The dividend, as recommended by the Board of Directors, if declared at the ensuing Annual General Meeting (AGM) of the Company, would be paid from Friday, 14th February, 2025, noted the company's release.

Also, the company's board approved further investment of around Rs. 100 crore for Power Transformers, in addition to the investment of around Rs. 360 crore approved on 28th November, 2023. 

Sunil Mathur, Managing Director and Chief Executive Officer, Siemens Ltd said, "With a pick-up in private sector capex and the Government's ongoing focus on capex in infrastructure, we believe we are well positioned to meet the growing opportunities in the market. We are currently focused on completing the announced demerger of the Energy business which will unlock value for our shareholders."

The company has a strong order backlog worth around Rs 46,800 crore.

Furthermore, the company remains focussed on completing the demerger of its Energy business.

Should you buy, hold or sell Siemens?

UBS while reiterating its 'neutral' stance on the stock has hiked the target from Rs 7,770 to Rs 8,000-implying potential gains of over 10 per cent from the last close.

As per the brokerage electrification leads industrials. Also, the company reported a sharp beat in bottomline, led by other income, which grew 95 per cent on-year.

The company sounded optimstic on government capex, infra spend as well as pickup in private capex. According to the brokerage, the heavy electical equipment company reported  11 per cent/34 per cent/45 per cent yoy growth in top-line/EBITDA/PAT. Further while it missed on topline, it delivered beat of 1 per cent/18 per cent on EBITDA & PAT

New orders at the company at Rs 6,160 crore reflect  a 37 per cent year-on-year growth.