Religare's reserach report on SiemensSIEM’s Q4FY15 numbers were in line with estimates, with PAT up 13% YoY to Rs 1.7bn, even as private sector capex remained weak. Adjusted for metal technologies, order inflow was up 10%/1% YoY in Q4FY15/FY15 to Rs 31.3bn/Rs 100.7bn. In our view, the stock is pricing in the likely improvement in capex cycle over the next two years. We find valuations prohibitive given the middling returns and growth profile. Maintain SELL with a Mar’17 TP of Rs 790.For Q4FY15/FY15, excluding metal technologies, SIEM recorded order inflows of Rs 31.3bn/Rs 100.7bn (+10% YoY/+1% YoY) mainly driven by mobility, healthcare and digital factory orders. The order backlog declined by 21% YoY and stood at Rs 95.9bn as of FY15-end.For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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