On March 26, 2025, Siemens India’s share price surged by 7%, reflecting a significant market response following the National Company Law Tribunal (NCLT) approval for the demerger of Siemens Energy India Ltd from Siemens Ltd. This demerger, part of a broader strategy initiated in 2020, allows Siemens to streamline its operations and focus on its core business areas.
Siemens shares opened at ₹5,300.00 and climbed to a high of ₹5,501.7 on the National Stock Exchange (NSE), marking an impressive gain of 7.47%. As of 11:11 a.m., the stock was trading at ₹5,448, which represented a 6.42% increase from the previous day. By 11:43 a.m., the share price had further increased to ₹5,453.05, showcasing a robust trading volume that had grown by over six times.
The NCLT's sanction of the demerger, effective from March 25, 2025, allows shareholders of Siemens Ltd to receive one fully paid-up equity share of Siemens Energy for every share they hold, with the record date for this allotment set for April 7, 2025. This move is anticipated to unlock significant value for investors, as Siemens Energy will now operate as a separate entity.
Guilherme Vieira De Mendonca has been appointed as the Managing Director and Chief Executive Officer of Siemens Energy, while Harish Shekar takes on the role of Executive Director and Chief Financial Officer. Both appointments are pending necessary shareholder and regulatory approvals.
Financially, Siemens Ltd reported a net profit of ₹614.3 crore for the quarter ending December 2024, marking a 22% increase from ₹505.4 crore in the same period the previous year. However, revenue from operations experienced a slight decline of 3% to ₹3,587.2 crore, down from ₹3,709.5 crore a year ago. This mixed financial performance reflects the ongoing transitions within the company.
Industry analysts have varying opinions on the future performance of Siemens shares. According to reports from Trendlyne, while some experts suggest holding, 43% recommend buying, and 29% advocate for a hold strategy. The consensus target price for Siemens Ltd stands at ₹7,184.50, indicating a potential upside of approximately 32.3% from the last recorded price of ₹5,430.30.
In the context of broader market movements, the BSE Capital Goods index is currently at 63,160.7, reflecting a 1.1% increase. Other stocks within the index, like ABB and Hindustan Aeronautics, have also shown positive gains. Over the past year, Siemens shares have appreciated from ₹5,101.1 to ₹5,499.1, representing a growth of 7.8%.
In addition to the demerger, Siemens has made headlines with its recent deal involving Siemens Gamesa Renewable Power’s Indian wind energy assets, which TPG’s consortium agreed to acquire for approximately $500-550 million. Siemens Energy AG will retain a minor stake in this venture.
As the market reacts to these developments, investors are keenly observing how the separation will affect Siemens’ operational focus and profitability moving forward. The demerger is expected to allow Siemens to concentrate on its core competencies in infrastructure, industry, transport, digital transformation, and electrical power.
In summary, Siemens’ latest financial results, coupled with the successful demerger, paint a complex picture of a company in transition. Investors are advised to consider both the short-term market fluctuations and the long-term potential of Siemens Energy as it embarks on its independent journey.
