Accumulate Siemens, target price Rs 2815: Prabhudas Lilladher

Prabhudas Lilladher has accumulate call on Siemens with a target price of Rs 2815. The current market price of Siemens Ltd. is Rs 2642.6. Time period given by analyst is one year when Siemens Ltd. price can reach defined target.

Siemens Ltd., incorporated in the year 1957, is a Large Cap company (having a market cap of Rs 93736.19 Crore) operating in Engineering sector.

Siemens Ltd. key Products/Revenue Segments include Engineering Goods, Income from Project Development, Sale of services, Other Operating Revenue, Rental Income, Export Incentives and Commission for the year ending 30-Sep-2021.



Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 4337.00 Crore, up 7.85 % from last quarter Total Income of Rs 4021.50 Crore and up 45.33 % from last year same quarter Total Income of Rs 2984.20 Crore. Company reported net profit after tax of Rs 300.70 Crore in latest quarter.

Investment Rationale
The brokerage remains positive on SIEM from a long-term perspective given its 1) strong and diversified presence across industries, 2) focus on digitization and automation products, 3) product localization, 4) healthy balance sheet and 5) high cash flow. With strong order book and enquiry pipeline, it expects SIEM to report revenue/PAT CAGR of 15.5%/23.2% between SY21-SY24E. The stock is currently trading at PE of 75.1x/57.6x/48.3x SY22E/23E/24E earnings. It rolls forward TP to SY24E EPS and revise it to Rs2,815 (Rs2,602 earlier) valuing it at 52x SY24E EPS. Maintain ‘Accumulate’ rating.

Promoter/FII Holdings
Promoters held 75.0 per cent stake in the company as of 30-Jun-2022, while FIIs owned 5.42 per cent, DIIs 9.64 per cent.