Motilal Oswal neutral on Siemens; target Rs 746

Motilal Oswal has maintained neutral rating on Siemens with a target price of Rs 746, in its February 1, 2013 research report
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead Realasset
moneycontrol.com

Home » News » Recommendations

Feb 05, 2013, 12.48 PM | Source: Moneycontrol.com

Motilal Oswal neutral on Siemens; target Rs 746

Motilal Oswal has maintained neutral rating on Siemens with a target price of Rs 746, in its February 1, 2013 research report

Like this story, share it with millions of investors on M3

Motilal Oswal neutral on Siemens; target Rs 746

Motilal Oswal has maintained neutral rating on Siemens with a target price of Rs 746, in its February 1, 2013 research report

Post Your Comments

Share Cancel

Motilal Oswal (more)

CMD, |

Motilal Oswal has maintained neutral rating on Siemens with a target price of Rs 746, in its February 1, 2013 research report.

"SIEM's 1QFY13 operating performance was a mixed bag. Revenue was flat YoY at INR24.8b (v/s our estimate of INR24.8b) and net profit was up 22% YoY at INR731m (v/s our estimate of INR723m). However, segmental working capital deteriorated significantly, raising concerns on project cash flows. EBITDA margin expanded 200bp YoY to 6.5%, marginally ahead of our estimate of 6%. Order intake declined 31% YoY to INR20b and is lower than the revenue of INR25b. Results for the quarter were also supported by the merger of Power Engineering and VAI Metals, the financials of which have not been separately disclosed.

Though reported numbers are broadly in line with our estimates, we are disappointed as (1) the in-line performance was not broadbased, (2) Infra & Cities has again posted losses, and (3) segmental working capital seems to be under pressure. Profitability remained subdued across segments, although Healthcare margins have been sustained on QoQ basis at 4.6% v/s 4.9%. Capital employed in all the business segments barring Healthcare has shown deterioration, indicating pressure on project cash flows. SIEM had been showing tight control over capital employed, indicating strict preference for project cash flows over revenues.

We have cut our earnings estimate by 13% for FY13 to factor in lower expectations on profitability improvement. The stock quotes at 41x FY13E and 29x FY14E EPS. Maintain Neutral with a price target of INR746 (30x FY14E EPS)," says Motilal Oswal research eport.

Institutional holding more than 40% in Indian cos

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies 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.

To read the full report click here

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
Motilal Oswal neutral on Siemens; target Rs 746

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login