Enam Securities puts 'underperformer' on Siemens India
Enam Securities has put an ‘underperformer’ on Siemens India on lower-than-expected results and poor performance by its subsidiaries.
CMP: Rs 240
Target price: 226
Enam Securities has put an ���underperformer��� on Siemens India on lower-than-expected results and poor performance by its subsidiaries. The brokerage says that Siemens��� continuing engineering businesses ��� power, industry and transportation are showing signs of slowing. The IT business is unlikely to create value for the shareholders.
���We are revising our earnings estimates downward by 31% to Rs 18.5 to account for slowing business traction. We downgrade the stock to sector underperformer,��� the report says. It adds that the management of the company has hinted at delays in contract finalisation and contract renegotiations at lower prices by customers due to the decline in commodity prices.
The management believes that the power division will be a key growth driver, driven by strong growth in domestic market and huge opportunity in the Middle East. ���Going forward, the management would be focusing on the quality and profitability of order rather than size and volume of the project,��� says the report.
Target price: 226
Enam Securities has put an ���underperformer��� on Siemens India on lower-than-expected results and poor performance by its subsidiaries. The brokerage says that Siemens��� continuing engineering businesses ��� power, industry and transportation are showing signs of slowing. The IT business is unlikely to create value for the shareholders.
���We are revising our earnings estimates downward by 31% to Rs 18.5 to account for slowing business traction. We downgrade the stock to sector underperformer,��� the report says. It adds that the management of the company has hinted at delays in contract finalisation and contract renegotiations at lower prices by customers due to the decline in commodity prices.
The management believes that the power division will be a key growth driver, driven by strong growth in domestic market and huge opportunity in the Middle East. ���Going forward, the management would be focusing on the quality and profitability of order rather than size and volume of the project,��� says the report.
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