Result Update: Siemens India Ltd - SELL - TP Rs.1170 - Kotak

- Siemens reported encouraging growth in order inflows in Q2FY17 across divisions. PAT outperformed our estimate on back of superior order execution across key verticals.

- We maintain that currently at PER of 42.4x FY18 earnings company's stock fully discounts 1) gradual recovery in the domestic market, led by increased public spending across various infrastructure projects and 2) potential margin expansion in medium/long term from improved focus on core business. We therefore maintain 'SELL' recommendation with unchanged target price of Rs 1170 (ascribe PER of 35x on FY18 earnings).

Shares of SIEMENS LTD. was last trading in BSE at Rs.1402.95 as compared to the previous close of Rs. 1414.5. The total number of shares traded during the day was 8916 in over 510 trades.

The stock hit an intraday high of Rs. 1422.6 and intraday low of 1398.9. The net turnover during the day was Rs. 12557330.

Source : Equity Bulls

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