Siemens Jumps Almost 9% Regarding Plans To Disinvest in Energy Business; Learn More
Monday’s trading saw a roughly 9% increase in Siemens shares. In today’s intraday trade on the BSE, the share reached a new all-time high of Rs 4,244.55 after the announcement by the firm that it intends to contemplate demergerating its energy division into an independent organization.
Siemens Aktiengesellschaft, Germany, Siemens International Holding B.V., and Siemens Energy Holding B.V., as well as Siemens Energy Aktiengesellschaft, the ultimate parent company of Siemens Energy Holding B.V., have all requested that the board of directors of Siemens take into consideration, evaluate, and then begin taking exploratory steps towards a potential demerger of the company’s energy business into a separate entity. This information was disclosed by the company in an exchange filing today.
Additionally, the board has given the company’s management permission to start any necessary exploratory work to look at a possible demerger of the energy division. Additionally, it gave its approval for the aforementioned demerger plan’s instant establishment of a wholly-owned subsidiary in Mumbai.
Siemens said earlier in November that its net profit for the quarter that ended in September was Rs 571 crore, a 12.4% decrease from the same period the previous year on a consolidated basis. The firm generated operating revenue of Rs 5,721 crore for the same period, rising 25.3% year over year.
Following the results release, UBS held its price objective for Siemens at Rs 3,750 and retained a “neutral” rating on the company last month. Its objective suggests that the stock will rise 2.9% from the previous closing.
Brokerage analysts said that while the firm had a steady headline performance for the quarter, they see few short-term catalysts for the stock.
EBITDA, PAT, and top-line growth for the IT business were all deemed robust by UBS, with the EBITDA margin coming in 180 basis points ahead of the brokerage’s expectation but 52 basis points behind the consensus estimate.
