Siemens Energy India STUNS with Record FY25 Results! Brokerages Issue FRESH BUY Calls – Is This Your Next Big Stock?

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AuthorAbhay Singh|Published at:
Siemens Energy India STUNS with Record FY25 Results! Brokerages Issue FRESH BUY Calls – Is This Your Next Big Stock?
Overview

Siemens Energy India reported outstanding FY25 results, with revenue surging 27% to ₹2,646 crore and net profit jumping 31% to ₹360 crore in Q4FY25. Full-year profit grew an impressive 83% to ₹1,100 crore. The company also saw a 47% increase in its order backlog to ₹16,205 crore and announced a ₹4 per share dividend. Leading brokerages Motilal Oswal and Antique Stock Broking maintain 'Buy' ratings, citing strong execution and growth opportunities.

Siemens Energy India has released robust financial results for the fiscal year 2024-25, showcasing significant growth in revenue and earnings. The company's performance, along with a substantial order backlog, has garnered positive attention from leading financial analysts.

Company Financials

  • Siemens Energy India reported a 27% year-on-year jump in revenue from operations, reaching ₹2,646 crore for FY25.
  • Net profit surged by 31% year-on-year to ₹360 crore in the July-September quarter (Q4FY25).
  • For the full financial year, net profit demonstrated an impressive 83% growth, amounting to ₹1,100 crore.
  • Earnings before interest, tax, depreciation, and amortisation (Ebitda) increased approximately 25% to ₹479 crore.
  • However, Ebitda margins saw a slight decrease of 40 basis points to 18.1%, attributed to higher raw material costs.

Key Numbers or Data

  • The company's order backlog grew significantly, by 47% year-on-year, to ₹16,205 crore in FY25.
  • Siemens Energy India announced a dividend of ₹4 per share, pending shareholder approval.

Analyst Opinions

  • Domestic brokerages Motilal Oswal Financial Services (MOFSL) and Antique Stock Broking have reiterated their 'Buy' ratings on Siemens Energy India.
  • MOFSL noted better-than-expected revenue and operating profit for the full year, citing strong execution despite lower other income impacting net profit.
  • MOFSL highlighted that full-year order inflows of ₹131 billion far surpassed their ₹101 billion estimate, ensuring strong visibility for power transmission and generation businesses.
  • Antique Stock Broking emphasized steady quarterly order inflows of ₹2,350 crore and the robust 47% year-on-year growth in the order book.

Stock Price Movement

  • On the NSE, the stock opened trading at ₹3,250, a 2.75% increase from its previous close.
  • At the time of reporting, Siemens Energy India stock was trading 0.55% higher at ₹3,180.
  • This performance was in contrast to the NSE Nifty50, which traded nearly flat.

Future Expectations

  • MOFSL maintained a target price of ₹3,800, holding a positive outlook due to opportunities in transmission, potential margin improvements, and ongoing capital expenditure.
  • Antique Stock Broking set a target price of ₹3,416, valuing the stock at 65 times FY27 earnings.
  • Antique expects Siemens Energy India to achieve a compound annual growth rate (CAGR) of 22% in revenue and 30% in earnings between FY25 and FY27.
  • The company's advanced manufacturing facilities and expansion in transformer, switchgear, and industrial steam turbine services position it well for future growth, driven by rising power demand and industrial activity.

Impact

  • Positive financial results and strong analyst ratings can boost investor confidence, potentially leading to sustained stock price appreciation.
  • The growth in order backlog indicates strong future revenue streams and operational stability for the company.
  • Dividend payouts can provide direct returns to shareholders.

Impact Rating: 7/10

Difficult Terms Explained

  • Ebitda: Earnings Before Interest, Taxes, Depreciation, and Amortisation - A measure of a company's operating performance.
  • FY25: Fiscal Year 2024-25.
  • Y-o-Y: Year-on-Year - A comparison of financial metrics over consecutive years.
  • Basis points: A unit of measure equal to 1/100th of a percent.
  • CAGR: Compound Annual Growth Rate - The average annual growth rate of an investment over a specified period.
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