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    Siemens hits 52-week high as Q4 profit jumps 90%; Should you buy, hold or sell?

    Siemens hits 52-week high as Q4 profit jumps 90%; Should you buy, hold or sell?

    Siemens hits 52-week high as Q4 profit jumps 90%; Should you buy, hold or sell?
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    By Pranati Deva   IST (Published)

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    Shares of Siemens rallied 10 percent to its 52-week high after the company posted a 90 percent rise in its net profit for the March quarter.

    Siemens share price rallied 10 percent to its 52-week high after the company posted a 90 percent rise in its net profit for the March quarter. The consolidated net profit of the company stood at Rs 334.4 crore in the quarter under review as against Rs 175.7 crore in the year-ago quarter on the back of higher revenue.
    The stock rose as much as 10 percent to its 52-week high of Rs 2,143.20 per share.
    Total income rose to Rs 3,540 crore in the March quarter from Rs 2,722.1 crore in the same period a year ago. Meanwhile, the revenue from continuing operations came in at Rs 3,298 crore, up 29.6 percent YoY.
    The company follows the October to September financial year.
    Brokerages, however, were mixed on Siemens' results despite the robust performance. While Macquarie maintained an 'underperform' rating, MOSL had a 'neutral' call while ICICI Direct had a 'buy rating.
    "Overall, Siemens is expected to further strengthen its leadership position through the further penetration of automation and digitisation products and services across segments, particularly in digital industries, smart infrastructure, mobility segments, driving long-term growth," ICICI Direct said in a results review note. It also revised its target price to Rs 2,295 a share (earlier Rs 2,210) and maintain a buy rating.
    Meanwhile, MOSL said that it likes the company's product portfolio and diverse end-market exposure. The company is poised to benefit over the long term, led by the niche industrial automation and digitalisation businesses. However, the re-rating of the stock has been quite steep and the adjusted for strong cuts in other expenses the margin trend seems to be under pressure, it added. It prefers ABB over Siemens at current valuations.
    Commenting on the results, Siemens Managing Director and Chief Executive Officer Sunil Mathur said, "the March-end quarter demonstrated a steady revival in the economy with both private and public sectors beginning to invest in anticipation of future growth."
    The firm registered new orders from continuing operations of Rs 3,309 crore during the quarter, registering a 16.9 percent increase over the same period last year.
    "Order growth has been robust across all our businesses. There has been increased demand in our power transmission, digital grid and distribution systems businesses. Our digital industries segment saw growth in the machine tool and process automation businesses," the firm added.
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