Gladiator Stocks - Siemens - ICICI Direct

Technical View

• The capital goods sector has been outperforming over last few months after breakout from decade long consolidation. One of the preferred pick within the capital goods space is Siemens which has shown exceptional relative strength during recent market correction. The stock is resolving out of 3 month consolidation range thus offering fresh entry opportunity.
• Key point to highlight is that recent consolidation over 3 months has helped form higher base at 100 day EMA which has been held since October 2020 on numerous occasions indicating inherent strength in structural uptrend.

Fundamental View

• Siemens Ltd (Siemens) is a leader in technology solutions for smart, intelligent, building technologies, mobility, digital industries and power T&D. It operates mainly in five key segments including energy/gas & power (34%), smart infrastructure (33%), digital industries (22%), mobility (7%). Well placed to gain from the overall energy market transformation from electrification to automation & digitization.
• Siemens reported consolidated revenue at Rs. 4296.1 crore which grew by 21.1% on YoY basis amid low base. Gas & Power (Energy) segment de-grew by 0.8% to Rs. 1571 crore; Smart Infrastructure segment grew by 65.8% to Rs. 1526.8 crore; Digital industries segment revenue grew by 23.9% to Rs. 783.9 crore and Mobility segment revenue de-grew by 5.2% YoY to Rs. 311.7 crore. Gas & Power, Smart Infrastructure, Digital Industries, Mobility segments contributed ~36%, ~35%, 18%, 7% respectively. EBITDA came in at Rs. 447.2 crore with EBITDA margin of 10.4% (Vs. Rs. 12.9% in Q4FY20) impacted by higher other expenses, lag in passing through input cost increase amid challenges. Gross margins declined by 180 bps to 30.5% on YoY basis while it declined by 300 bps on QoQ basis. Gas & Power reported EBIT Margin of 13.2% which improved by 110 bps on YoY basis, Mobility segment EBIT margin declined to 11.7% (vs. 13.4% in Q4FY20) while Digital Industries and smart infrastructure reported EBIT margins at 6.7% and 4.8%, respectively. Reported PAT came in at Rs. 321.6 crore, down by 4.2% on YoY basis partly impacted by higher depreciation expense on YoY.

For details, click on the link below: Link to the report

Shares of Siemens Limited was last trading in BSE at Rs. 2445.60 as compared to the previous close of Rs. 2272.90. The total number of shares traded during the day was 88425 in over 9121 trades.

The stock hit an intraday high of Rs. 2470.00 and intraday low of 2276.00. The net turnover during the day was Rs. 214432661.00.

Source : Equity Bulls

Keywords

Siemens INE003A01024 ICICIDirect GladiatorStocks