Buy Siemens; target of Rs 1402: Prabhudas Lilladher

Prabhudas Lilladher's research report on Siemens

GOAGRO's results were significantly impacted due to COVID and lockdown measures leading to significant erosion in topline and profitability in the core business. Many one-offs and adjustments have impacted YoY comparison, but indicatively adjusted sales/EBITDA/APAT came at +2%/-5%/+38% YoY @ Rs 14.6 bn/ Rs 648 mn/ Rs 272 mn resp. Though its products fall under essential categories list the outlook continues to be grim for a while, as many of its products target out-of-home consumption. A broad based revival of fortunes for GOAGRO is expected only in FY22.

Outlook

We maintain BUY with revised TP of Rs1402 on 40x SY21E as we believe strong balance sheet will support the valuations.

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