Ajcon Global has given Buy recommendation for Siemens with a target price of Rs. 2710 in its research report issued on Aug 30, 2021
Ajcon Global’s report on Siemens
Siemens Limited focuses on intelligent infrastructure for buildings and distributed energy systems and on automation and digitalization in the process, discrete & hybrid manufacturing industries. The Company brings together the digital and physical worlds to benefit customers and society. It offers broad expertise across the entire energy value chain, along with a comprehensive portfolio for utilities, independent power producers, transmission system operators, the oil and gas industry, and other energy-intensive industries. With its products, solutions, systems, and services, it addresses the needs of energy transition, including storage and sector-coupling solutions. It is also a supplier and service provider of intelligent mobility solutions for rail, road and inter-modal transport for passenger and freight services. Siemens Limited is the flagship listed company of Siemens AG in India. For over six decades, Siemens India has been the preferred technology solutions provider, conceptualizing and implementing various flagship projects in Mobility, Energy Management, Power and Gas, Smart Cities, Intelligent Infrastructure, Industrial Applications, Healthcare and Smart Financing.
Over the years, Siemens Ltd in India has emerged as a leading inventor, innovator and implementer of leading-edge technology enabled solutions operating in the core business segments of Industry, Energy and Healthcare. At CMP of Rs. 2,288.4, the stock is valued at a P/E of 72x at trailing twelve months EPS. We recommend a “BUY” and assign a target price of Rs. 2,710 (P/E of 60x at estimated FY23 EPS of Rs. 45.16) due to the following factors.