Siemens must reignite growth

Siemens India Ltd’s stock is down 7% in this year so far, sharply underperforming the S&P BSE Capital Goods index, which continues to deliver positive returns. A sluggish revival in private capital expenditure and muted government spending have weighed on sentiment.

- Ashish Agrawal

A key swing factor for a turnaround is sustained order inflow momentum. In the September quarter, Siemens reported order inflows of ₹4,800 crore, up 10% year-on-year but down sequentially.

JM Financial Institutional Securities said Siemens’s order inflows continue to be robust relative to peer ABB India Ltd, but missed the ₹5,100 crore estimate. “While details are not yet disclosed, we believe high levels of mobility orders in the previous two quarters may not have sustained.”