Mehabe score: 4 G Factor: 2 Piotski Score: 5 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 2 and Piotski score of 5.
Description
Siemens Limited offers products, integrated solutions for industrial applications for manufacturing industries, drives for process industries, intelligent infrastructure and buildings, efficient and clean power generation from fossil fuels and oil & gas applications, transmission and distribution of electrical energy for passenger and freight transportation, including rail vehicles, rail automation and rail electrification systems.Site:SIEMENSMain Symbol:SIEMENS
Stock trades at 2276.0, above its 50dma 2249.15. It also trades above its 200dma 2021.36. The stock remains bullish on techicals
The 52 week high is at 2440.00 and the 52week low is at 1357.55
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 27.07%
Weakness
– Stock is trading at 7.83 times its book value
-The company has delivered a poor sales growth of 4.71% over past five years.
– has a low return on equity of 10.50% for last 3 years.
Competition
– The industry trades at a mean P/E of 26.8x. A B B trades at the industry’s max P/E of 132.36x. SIEMENS trades at a P/E of 74.4x
– Industry’s mean G-Factor is 2.7 while the mean Piotski score is 7.0. SIEMENS has a G-Factor of 2 and Piotski scoreof 5.
– Average 1 month return for industry is 4.7%. The max 1- month return was given by A B B: a return of 12.73 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 4296.0 cr compared to Rs 3547.0 cr for period ended Sep 2020, a rise of 21.1%
Operating Profits reported at Rs 447.0 cr for period ended Sep 2021 vis-vis 450.0 for period ended Sep 2020 .
Operating Margins contracted -228.2 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 9.03 compared to Rs 3.9 for previous quarter ended Jun 2021 and Rs 9.27 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 13639.0 cr for period ended Sep 2021 vis-vis sales of Rs 9946.0 cr for the period ended Sep 2020, a healthy growth of 27.1%. The 3 year sales cagr stood at 2.2%.
Operating margins expanded to 11.0% for period ended Sep 2021 vis-vis 10.0% for period ended Sep 2020, expansion of 100.0 bps.
Net Profit reported at Rs 1090.0 cr for period ended Sep 2021 vis-vis sales of Rs 769.0 cr for the period ended Sep 2020, rising 29.4%.
Company recorded a Net Profit CAGR of 6.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 11.0% compared to 11.0% over the last 3 Years. – The stock has given a return of 63% on a 1 Year basis vis-vis a return of 35% over the last 3 Years. – The compounded sales growth on a TTM bassis is 37% vis-vis a compounded sales growth of 2% over the last 3 Years. – The compounded profit growth on a TTM basis is 42% vis-vis a compounded profit growth of 7% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 5.21% vis-vis 4.6% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 9.87% vis-vis 10.05% for Jun 2021
Conclusion
– is almost debt free.
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 27.07% – Stock is trading at 7.83 times its book value
-The company has delivered a poor sales growth of 4.71% over past five years.
– has a low return on equity of 10.50% for last 3 years.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 2249.15 and is trading at 2276.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
