ICICI Direct has given Buy recommendation for Siemens recommended buy rating on the stock with a target price of Rs 2390 in its research with a target price of Rs. 2390 in its research report issued on Jun 02, 2021

ICICI Direct’s research report on Siemens

We recently attended the analyst meet of Siemens Ltd (Siemens). The order opportunity pipeline remains healthy across segments with solar, Statcoms, power evacuation, GIS substations as TBCB gaining momentum and good traction in waste heat recovery (WHR) plants from private customers in steel, cement, chemical, fertiliser, etc. In smart infrastructure, a lot of traction is seen in data centres, hospitals, building management systems, low voltage products with fairly visible opportunity pipeline. Revenue growth in H1FY21 was aided by short cycle products business (Smart Infrastructure and Digital Industries) primarily driven by private customers. Exports business saw a marginal increase to 21.8% for H1FY21. It was able to control discretionary expenses driven through continued efforts on optimisation of fixed costs. Order backlog was healthy at Rs 12677 crore.


We revise our target price to Rs 2390/share (earlier Rs 2295) and maintain BUY rating, implying multiple of 50x FY23E EPS for core business and valuing C&S business at 2.1x FY23E sales.