Accumulate Siemens; target of Rs 1221: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on Siemens with a target price of Rs 1221 in its research report dated dated April 09, 2019.

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April 09, 2019 / 16:06 IST

26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on Siemens

Our management meeting with SIEM indicated the sustained thrust of the company to transform itself from being a product company (62-65% of sales) to a complete solution provider. SIEM is focused on 1) Digitization and localization 2) Creating smart infrastructure and 3) Increasing customer by leveraging its strong balance sheet and offering innovative financing. SIEM will continue to focus on Automation, Signaling and Electrification (Railways) in the Mobility division (10% of sales) post rejection of Siemens Alstom mobility merger by EU. Capex cycle is yet to show signs of any major revival, however demand for Digit solutions/ automation across segments (Auto, F&B, Cement, Oil & Gas, Sugar etc.) and cost control have enabled have Sales/PAT CAGR 4%/28% in last 4 years.

Outlook

We expect SIEM to deliver earnings CAGR of 14% over the next two years (FY18-20E). We arrive at target price of Rs1221 as we rollover target price to March21 EPS. We maintain Accumulate.

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