Prabhudas Lilladher: Market performer Siemens

Prabhudas Lilladher has maintained its market performer rating on Siemens post Q1FY07 results.

In a report released today, the brokerage said: "Siemens' current order book of Rs 110.4bn is up 44.7% from the start of the quarter. The order inflow momentum has been healthy during the quarter, with the largest order received worth Rs 36bn (total size: Rs 40bn, Rs 4bn to Siemens AG, Germany) from Qatar Electricity and Water Corporation.

"We have revised our estimates and now estimate a much higher topline growth for the company, however operating margins are expected to be lower. We estimate consolidated earnings of Rs 34.7 and Rs 49.7 for FY07E and FY08E respectively.

"At the current market price of Rs 1,216, the stock trades at 35.1x FY07E and 24.4x FY08E. It is available at 22.1x and 14.7x FY07E and FY08E EV/EBIDTA, respectively. We maintain our market performer rating."

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