IIFL has recommended a reduce rating on Siemens with a 12-month target of Rs 210 in its December 1, 2008 research report. "Siemens’ FY08 standalone revenues grew by 7.6% YoY as order intake decreased 14% YoY. In the FY08 analyst meet, management commentary on the demand environment remained cautious. Order coverage ratios have already deteriorated as order intake declined 14% YoY. Consequently growth is unlikely to accelerate and margins are at risk as new orders would likely have lower margins as compared to existing orders."

"Moreover prospects of the Indian entity would be linked to performance of Siemens AG globally as optimisation of global capacities would be a key determinant of exports from India. We cut our target price as we reduce our FY09 PE multiple from 13x to 11x (15% discount to ABB) due to increased risk to growth from changes in group strategy, Reduce, target of Rs 210," says IIFL's research report.

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