The stock of Siemens India has given 11-days consolidation breakout on daily scale. This breakout was accompanied by strong trading volume, surpassing the 50-day average volume. Furthermore, on the breakout day, the stock displayed a significant bullish candle, reinforcing the strength of the upward movement.
Jefferies said it has 'Buy' ratings on eight of its 10 covered industrial/power companies, except Cummins and BHEL. Larsen & Toubro (L&T), Siemens Ltd, Thermax Ltd and KEI Industries Ltd are its top picks.
We remain positive on SIEM from a long-term perspective given 1) its strong and diversified presence across industries through focus on electrification, digitalization & automation, 2) product localization, 3) strong balance sheet, 4) healthy public & private capex and 5) focus on cost efficiencies. The stock is currently trading at a PE of 63.0x/54.5x SY24/25E valuing it at PE of 60x SY25E (same as earlier).