Prabhudas Lilladher has given Accumulate recommendation for Siemens with a target price of Rs. 2101 in its research report issued on Jun 01, 2021

Prabhudas Lilladher’s research report on Siemens

We recently attended analyst meet of Siemens India hosted by Mr. Sunil Mathur– MD & CEO to gain insights on various business verticals and impact of second wave of the pandemic. Management indicated that the demand environment was vibrant across sectors led by sharp recovery in economic activity and some pickup witnessed in private capex cycle. Export markets saw good ordering traction from developed western markets such as Europe and American regions, while Domestic markets saw decent traction in industries such as Cement, Chemicals, Pharma, F&B, Steel, etc. Further sectors such as data centre, e-commerce, waste heat recovery, smart infra, digitalisation, automation, TBCB, hospitals, sub-station, etc. would help drive growth going ahead.

Outlook

We maintain ‘Accumulate’ rating on the stock with revised TP of Rs2,101 (earlier TP of Rs1,856) valuing at 50x (10-year average is 40x). Assumption of a high multiple is done, as we believe SIEM to be one of the beneficiaries from recovery in economy activity and government’s thrust on infrastructure development.

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