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