Prabhudas Lilladher has revised its rating on Siemens from outperformer to market performer with a price target of Rs 602 in its April 28, 2008 research report. "Siemens reported 1% YoY growth in revenue to Rs 21 billion, while its PAT declined 98.5% from Rs 1.1 billion in Q2FY07 to Rs 17 million in Q2FY08. Three factors contributed to this dismal performance; a provision of Rs 1.1 billion for estimated losses on certain contracts, an order reversal of Rs 1.17 million relating to construction contracts and finally due to hiving off buildings technology and information & communication segments into separate entities, and the sale of the automotive segment in FY07. Together these three segments accounted for 5% of revenue in Q2FY07."

"Owing to the dismal performance in Q2FY08, we have revised our EPS forecast downwards for FY08E and FY09E from Rs 26.3 to Rs 23.2 and Rs 35.7 to Rs 30 respectively. At the current market price of Rs 581, the stock trades at 25.0x and 19.3x FY08E and FY09E earnings. We have revised our rating on the stock from Outperformer to Market Performer with a price target of Rs 602, implying a return of 3.8%," says Lilladhers's research report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

For further details click on attachment......