Siemens plans to carve out its electric vehicle charging business, Siemens eMobility, combining it with recently acquired Heliox. This move aims to boost growth in the rapidly evolving EV charging industry across Europe, North America, and Asia. The acquisition targets extending market reach primarily in Europe and North America.

Key financial highlights for Siemens in 2024 include:

• Revenue growth: The company reported ₹19,553.8 crores in total revenue for FY 2023, marking a notable increase from ₹16,137.8 crores in the previous year.
• Profitability: Siemens has maintained a robust Return on Capital Employed (ROCE) of 17%, higher than the industry average of 13%. Additionally, its Return on Equity (ROE) has steadily improved, reaching 15%.
• Balance sheet: Siemens maintains a strong financial position with low debt and consistent reserves growth, reflecting its prudent financial management.

While the stock has seen a substantial run-up, it’s important to note that the company’s long-term ability to reinvest at stable returns of around 17% suggests continued potential for value creation for shareholders. Investors should consider both the strong growth prospects and the high valuation when evaluating Siemens’ stock for long-term investments.

• PE ratio: Price to Earnings ratio, which indicates how much an investor is willing to pay for a share for every rupee of earnings. A general rule of thumb is that shares trading at a low P/E are undervalued (it depends on other factors too). Siemens has a PE ratio of 11which is high and comparatively overvalued.
• Return on Assets (ROA): – Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. Siemens has an ROA of 83% which is a bad sign for future performance. (higher values are always desirable)
• Current ratio: – The current ratio measures a company’s ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company can be stable to unexpected bumps in business and economy. Siemens has a Current ratio of 91.
• Return on equity: – ROE measures the ability of a firm to generate profits from its shareholders’ investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. Siemens has a ROE of 53% .(higher is better)
• Debt to equity ratio: – It is a good metric to check out the capital structure along with its performance. Siemens has a Debt to Equity ratio of 0which means that the company has a low proportion of debt in its capital.
• Sales growth: – Siemens has reported revenue growth of 13% which is fair in relation to its growth and performance. 
• Operating Margin: – This will tell you about the operational efficiency of the company. The operating margin of Siemens for the current financial year is 29%.
• Dividend Yield: – It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for Siemens is Rs10 and the yield is 14 %.
• Earnings Per Share: – It tells us how much profit is allocated to to each outstanding share of a common stock. The latest EPS of Siemens is Rs08. The higher the EPS, the better it is for investors. 

The stock crossed its yesterday’s high in the opening range (Rs.7125) and hence recommended ITM Call Option for further momentum.