Prabhudas Lilladher's research report on Siemens
Siemens (SIEM) reported revenue growth of 49.8% YoY, driven by strong growth across key segments such as Mobility (up 185.5% YoY), Energy (up 52.3% YoY), Smart Infra (up 38.1% YoY) and Digital Industries (up 45.7% YoY). Except for mobility all other segments reported margin expansion. Other expenses grew 83.9% YoY to Rs4.6bn in Q3SY22, thereby impacting EBITDA margin during the quarter. Order inflows momentum continued during the quarter and came in at Rs49.9bn, translating to strong order book of Rs178.6bn. Management indicated no slowdown in public and private capex, though they are concerned about global headwinds impacting demand, which could result in a slowdown in capex spending. We believe segments such as data center, e-commerce, waste heat recovery, smart infra, digitalization, automation, intralogistics, EV charging infrastructure, decarbonisation, smart metering, smart grids etc. would be key growth driver going ahead.
The stock is currently trading at PE of 75.1x/57.6x/48.3x SY22E/23E/24E earnings. We roll forward our TP to SY24E EPS and revise it to Rs2,815 (Rs2,602 earlier) valuing it at 52x SY24E EPS. Maintain ‘Accumulate’ rating.
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