Siemens India - Earnings bottoming out - upgrade to HOLD - Religare

SIEM's Q2FY13 results were lower than estimates on slower project execution and revision in project-related provisions. Sales/PAT declined 26%/91% YoY to Rs 29.6bn/Rs 0.3bn in the quarter. However, order inflows were robust at Rs 28bn, up 52% YoY. We cut FY13/FY14 EPS by 38%/21% to account for weakness in execution and profitability. In our view, Q2FY13 numbers for SIEM reflect trends close to bottom of the cycle, while order inflows have remained stable. Upgrade to HOLD with a Mar'14 TP of Rs 550.

Source : Equity Bulls

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