Shares of this large-cap stock jumped 3 percent today to reach its fresh 52-week high levels. The same is recorded after the company releases a regulatory filing with the BSE pertaining to the sale of the company’s division.
With a market capitalization of Rs 1,42,765 crores, the stocks of Siemens Limited started their trading session at Rs 3,939.40 and currently trade at Rs 3,980, a gain of approximately 3 percent as compared to the previous close of Rs 3,857.70 apiece.
The stock price movements were observed today after the company, in a filing with the BSE last week, provided an update on the proposed sale and transfer of the company’s “Low Voltage Motors and Geared Motors” business division.
The company’s Board of Directors, in May 2023, had approved the above-mentioned transaction for a consideration of Rs 2,200 crores to “Siemens Large Drives India Private Limited”, a wholly owned subsidiary of Siemens AG w.e.f. 1st of October 2023.
With regard to the same, the company informed that the shareholders, as a result of the Postal Ballot, have disapproved the sale of the division.
Having a quick walkthrough of the company’s quarterly financials, the operating revenues as well as net profits went up with the former moving up from Rs 4,015 crores during Q3FY22-23 to Rs 4,857 crores during Q4FY22-23, and, the net profits taking a shift from Rs 462 crores to Rs 471 crores during the same time horizon.
The company’s profitability metrics, following October-September as a financial year, showed decent growth with the return on equity (RoE) increasing from 10.53 percent during FY20-21 to 13.28 percent during FY21-22, and, the return on capital employed (RoCE) moving from 12.92 percent to 14.42 percent.
As per the June 2023 shareholding pattern data, the Promoters hold a 75 percent stake, and the Foreign Institutional Investors (FIIs) hold a 7.58 percent stake in the company.
Siemens Limited is an electrical engineering services company that provides resource-saving, energy-efficient technologies like medical imaging equipment, offshore wind turbine construction, and other associated products & services.
Written by Amit Madnani
