7 hours Ago
Siemens shares have witnessed extreme volatility in recent sessions, catching the attention of investors. The stock that had hit a 52-week peak of ₹8,129.90 dropped down to ₹3,013.
50 on April 7, 2025. This means the Siemens share price went down a whopping 38.85% in a day.
Although the steep fall looks shocking at first, a detailed analysis shows the expectations of a 382% 5-year return. Siemens shares today opened at ₹2,450.00 and intraday jumped to ₹3,013.
50, its upper circuit limit. The session witnessed a good bounce of more than 20% from the day's low, reflecting high buying interest at the revised price. Trading volume rose to 664,690 shares, almost twice its 20-day average of 366,499, indicating increased investor participation.
Even with this rebound, some apps showed a fall of 40–50% in its price due to lagging updates in showing the revised market capitalization post-demerger. The main reason for the sudden decline in Siemens' share price is the demerger of its energy division, Siemens Energy India. On April 7, Siemens opened an ex-demerger.
Every shareholder was entitled to receive one share of the newly demerged energy company for each share owned by Siemens India . This modification, while technical, led to an instant markdown in the share price of Siemens. However, such a decline isn't an indication of intrinsic loss of value, but a reshuffling of valuation between Siemens and its breakaway unit.
Even after the correction, Siemens is inherently strong. Trailing twelve-month earnings per share (EPS) of the company increased 21% year on year to ₹79.33.
It has a PE multiple of 37.99, much below the industry average of 64.96, which indicates that the stock is cheap compared to peers.
Siemens' price-to-book (P/B) multiple of 6.99 and dividend yield of 0.40% also indicate solid fundamentals after the correction.
The book value per share of the stock is ₹431.22, and it has a market capitalization of ₹107,316 crore, which further strengthens its position as a sector leader even post-demerger. Siemens has a beta of 1.
47, which means it is far more volatile than the overall market. The stock has been trending below major moving averages, such as the 5-day and 200-day lines. Technicals such as MACD and KST are in bearish patterns, and Bollinger Bands indicate caution.
Additionally, recent weakness in the overall market, particularly the BSE Capital Goods Index, which declined by 5.3% on April 7, has contributed to investor nervousness. Large sectoral leaders such as Bharat Forge and Graphite India also experienced heavy losses, further boosting bearish sentiment.
Despite the present fluctuations, Siemens has shown excellent long-term returns: Three-year return: 108.51% Five-year return: 382.13% This performance is testimony to Siemens' resilience in returning from cyclical slumps and market corrections.
Additionally, the company's average delivery volume of 72.96% during the last 20 days. It also reveals that investors are mostly treating Siemens as a bet on the longer term, as opposed to speculation.
The recent crash in Siemens' share price is more of a technical correction from the demerger of its energy division, and not of declining fundamentals. Short-term volatility is high with a beta of 1.47 and weakness in the broader market.
However, it is a good company with good earnings, a strong business model. Siemens also has an upside potential based on undervaluation compared to its peer group in the sector. For long-term investors, this could be a chance to build a high-quality industrial stock at cheap levels, though with watchful eyes over the next few weeks.
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