Shares of Siemens Ltd fell over 2 percent in early trade on Wednesday after the company reported its earnings for the fourth quarter of financial year 2022 on Tuesday with the numbers missing estimates. The company follows October-September financial year.
The German technology company saw a 11 percent on year rise in its revenue from continuing operations at ₹4,237 crore during the quarter while the net profit surged 23 percent to ₹392 crore.
“For the financial year 2022, Siemens reported an increase of 43% in new orders, 18% in revenue and 20% in profit after tax from continuing operations over the previous financial year,” said the company in an exchange filing.
The company also declared dividend of ₹10 per share of ₹2 each.
Analysts believe the stock will be in a corrective phase and a further downside can be expected towards the ₹2,650 level. The resistance level is ₹2,800 level. They believe the stock could be good for medium to long term, and recommend to accumulate.
Brokerage Nuvama Wealth Management Ltd, formerly known as Edelweiss Securities, in its report said that the company missed its consensus Q4FY22 PAT estimate due to softer execution/weaker OPM ramp-up and greater tax impact, while new orders sustained healthy double-digit growth momentum.
Nuvama Wealth envisions new orders bunching up over the next 12 to 18 months, placing the company on a good footing.
The brokerage believes that the company's past few quarters of strong order momentum represent traction in both the short cycle and long cycle. It reiterates the company’s robust order pipeline across rail, transmission, and sustainability sectors.
“Importantly, scale-up in the C&S business, OPM ramp-up and execution remain key to creating stakeholder value over the next 12–24 months,” it added.
Despite the profit miss, the brokerage house retains ‘buy’ rating on the company with its strong order pipeline.
The stock has gained 37.58 percent from its 52-week low of ₹2021.0. It has underperformed the sector by 19.26 percent in the past year.
According to a Mintgenie poll, 22 analysts have a ‘buy’ call on the stock.