Sumary of Siemens stock down 5% as operating margins hit hard by inflation:
- Revenue grew 14% year-on-year (y-o-y) to ₹4,000 crore, but on a two-year CAGR basis, revenue was flat, analysts said.
- Ebitda fell 5% y-o-y and Ebitda margin declined 200 basis points y-o-y to 10.7%.
- Ebitda margin missed consensus estimate of 12.6%, while higher commodity prices are one of the key downside risks for the stock, analysts at Nomura Financial Advisory and Securities (India) Pvt Limited said in a report.
- Strong order inflows are imperative for its future outlook, given the rich valuations of the stock, said analysts at Motilal Oswal Financial Services Ltd. According to the brokerage house, the stock has sharply re-rated in anticipation of a capex recovery, but fails to account for margin pressure in the business.