December 1, 2021

The World Stock Markets Tips & Targets, News, Views & Updates

The World Stock Markets Tips & Targets, News, Views & Updates

Siemens plunges nearly 8% post Q4 earnings. Here#39;s what brokerages are saying

The company has recommended a dividend of Rs 8 per equity share for the financial year ended September 2021.

Siemens share price plunged nearly 8 percent to Rs 2,099.40 intraday after the company reported its fourth quarter earnings for FY21.

Siemens‘ Q4 (July-September) net profit was down 7.2% at Rs 330.9 crore versus Rs 356.7 crore in the same period last fiscal.

Its revenue was up 21.1% at Rs 4,296.1 crore versus Rs 3,546.8 crore YoY.

Earnings before interest, tax, depreciation and amortization (EBITDA) was down 1.9% at Rs 447.2 crore versus Rs 456 crore and margin at 10.4% versus 12.9%, YoY.

The company has recommended a dividend of Rs 8 per equity share for the financial year ended September 2021.

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Here’s what brokerages have to say about the stock and the company post its September quarter earnings:

Nomura

Maintain neutral rating on the stock with a target at Rs 2,355.

The company posted strong sales, but margin was below estimates on the rise in commodity and logistics cost. The company expects a pick-up in the private sector to aid order inflow growth.

Motilal Oswal

We like company’s product portfolio and diverse end-market exposure. The company is poised to benefit over the long term, led by the niche industrial automation and digitalization businesses.

However, re-rating of the stock has been quite steep and fails to acknowledge the rising dependency on strong order inflows as well as margin risks in the business.

We broadly maintain our estimates and remain neutral with a target price of Rs 2,065/share (core business: 42x FY24 EPS).

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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