MOSL: SIEMENS (Neutral)-In-line operational performance-expensive valuations warrant
​Siemens: In-line operational performance; expensive valuations warrant Neutral
(SIEM IN, Mkt Cap USD7.9b, CMP INR1452, TP INR1335, 8% Downside, Neutral)
- 3QFY17 operating performance came in line with expectations. On a reported basis, revenues increased 1.2% YoY to INR26.5b (in line with est. of INR26.3b; revenue from continuing business up 22% YoY), supported by strong growth in Energy Management (+54% YoY) and Building Technologies (+25% YoY) segments. EBIDTA declined 2% YoY to INR2.3b, with the margin at 8.5% (-30bp YoY; est. of 8.4%). Net profit from operations rose 27% YoY to INR1.6b, in line with our estimate of INR1.6b.
- Gross margin expanded 40bp YoY to 34.1% in 3QFY17. EBITDA margin of 8.5% came in line with our estimate of 8.4%. EBIT margin from continuing business expanded 30bp YoY to 6.0% on account of margin improvement across segments, except for Power & Gas and Process industries & Drives.
- Order inflow down 12% YoY; book-to-bill at 1.0x: Order intake for the quarter stood at INR28.5b (-12% YoY; IN32.2b in 3QFY16), led by delay in finalization of large-ticket orders. The company's book-to-bill stood at 1.0x, with order book position of INR112b.
Siemens is an electronics products manufacturing group based in India. Co. is engaged in designing, manufacturing and marketing electrical and electronics products and equipments mainly for the power industry and the information and communication industry in India. Co. is also engaged in providing consultation services, providing back office support services and real estate management. Co. operates nine business segments with Healthcare as a separately managed business. Co.'s business segments include: Power and Gas; Wind Power and Renewables; Power Generation Services; Energy Management; Building Technologies; Mobility; Digital Factory; Process Industries and Drives; and Financial Services.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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