Siemens’ Divestment Analyzed

Siemens has decided to sell its Low Voltage Motors (LVM) and General Motors business for ₹2,200 crore to a company called Innomotics India. This means they’re getting rid of a part of their company that wasn’t doing very well. Analysts at JM Financial have raised their opinion on Siemens stock because of this move.

Key Points

• Siemens sold its LVM business for ₹2,200 crore.
• This sale helps Siemens improve its financial situation.
• Analysts upgraded Siemens stock after the sale.
• The LVM business struggled with low growth and profits.
• The sale will be complete by June 2026.
• Higher profits are expected from Siemens’ other parts.

The LVM business made ₹967 crore in sales in the past year and was expected to grow, but it didn’t. They were also having trouble making a good profit. The company stopped investing in the LVM business, which made things worse.

Previously, the shareholders didn’t agree with the plan to sell the business because they thought it wasn’t worth enough money. Now, without this business, Siemens is expected to make more money and have better profits.

JM Financial believes that the sale is a good thing for shareholders. They raised their target price for Siemens stock to ₹3,480. They only gave the LVM business a small amount (₹40 per share) in their valuation, which means the sale adds more value to the company.

Analysts are now watching to see how well Siemens does with its other parts of the business, like Smart Infrastructure and Mobility. They want to know if these businesses can keep making good profits and if the company can maintain high profits for a long time.

“This strategic divestment positions Siemens for sustained growth and improved profitability in its core businesses.”