India's Siemens falls; BofA flags weak earnings outlook, expensive valuation

Shares of Siemens SIEM.NS fall 3% to 3,072 rupees

BofA Securities says despite 27% drop in June quarter profit and earnings cuts by brokerages, stock has been largely flat since June, leading to valuation expansion

SIEM is trading at a 12-month forward P/E of 46 times, close to its 10-year average

BofA expects about 7% earnings growth over the next few quarters, which could ease valuations to 44 times

Says, SIEM is due for another round of earnings cuts due to slowing execution in smart infrastructure business and softening momentum in digital industries

Still, BofA lifts its target price to 2,800 rupees from 2,564, rolling forward its valuation horizon by six months

BofA's revised target implies an 11.5% downside to last close, from 19% downside earlier

SIEM shares down 7% in 2025, underperforming the Nifty Next 50's .NN50 1.2% decline