Siemens (SIEM IN) – Analyst Meet Update – Smart Infra & Mobility to propel future growth – Accumulate

We attended the analyst meet of Siemens India Ltd (SIEM IN), during which the management outlined the company’s segmental performance and strategic outlook. Mobility continues to remain the key growth driver, benefiting from healthy order inflows in rolling stock and signaling, high-speed rail wins, metro opportunities, and ramp-up of 9,000HP locomotive deliveries starting with 40 units p.a and doubling it in every 2 year; expected to be margin accretive over the medium term as volumes scale. Smart Infrastructure (SI) continues to benefit from favorable macro tailwinds, ramp up in localization (currently ~65%), capacity expansion and strategic partnerships (M&As). Strong ordering from utilities, data centers and commercial buildings further enhance visibility. The management noted that Digital Industries (DI) appears to be bottoming out with uptake in orders and medium-term growth expected to improve with private consumption-led capex recovery, while margins are likely to remain in the range of 6-8% due to transfer pricing. With strong order backlog, focus on localization, strategic partnership, increasing solutions and services mix, SIEM IN remains structurally well placed to capture the next phase of T&D, industrial and private consumption-led capex cycle. The stock is currently trading at 53.2x/46.2x on SY26/27E. We maintain our ‘Accumulate’ rating with TP of Rs3,470 (same as earlier), valuing the stock at 51x Sep’27E (same as earlier).