Buy Siemens; target of Rs 2660: Edelweiss Securities

Edelweiss Securities' report on Siemens

We recently attended the FY21 analyst meet of Siemens India (SIEM). Highlights: i) Ordering cycle has improved consistently over the past few quarters led by efficiency-related private capex driven by shortmid cycle product orders from cement-metals, food-beverages and renewables, etc. ii) Utilisation at ~70% suggests large-scale greenfield capex is still some time away; however, medium voltage led by EV charging infra, renewable integration, data centres, etc will be a major driver for electrification.

Outlook

We remain bullish on SIEM enthused by perking up private capex across wider sectors and a few encouraging emerging trends driving automation, digital and medium voltage structurally. Retain ‘BUY’.

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