Anand Rathi 's research report on Siemens, India
Weakness at end-customers, further exacerbated by Covid-19, reflected in Siemens Q3 FY20 results. Its consolidated revenue plunged 59% y/y, However, it reported only a marginal EBITDA/net loss (`65m/19m) due to several cost-restructuring measures during the quarter. With a ~39% y/y drop in order inflows and weak commentary regarding private capex, we cut our FY20e/FY21e earnings by 12%/3% and roll forward our valuation to FY22e with revenue/PAT growing 17%/16%. We are long-term positive about the company 1) as it would be a key beneficiary of the industrial recovery, 2) Increasing adoption of automation/digitisation by customers in the current macro-environment.
Outlook
We retain our Buy rating, with a revised TP of `1,352 (earlier `1,200) at 40x FY22e.
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