The company's board in its meeting held on February 21 has approved to sell its mobility division and rail traction drives business Siemens AG or its subsidiary.
Shares of Siemens declined more than 3 percent intraday Friday as global broking houses maintained sell rating on the stock.
The company's board in its meeting held on February 21 has approved to sell its mobility division and rail traction drives business Siemens AG or its subsidiary.
The mobility division accounts for 10.46 percent of the turnover and 2.82 percent of the capital employed of the company for the year ended September 30, 2017.
Brokerage: Deutsche Bank | Rating: Sell | Target: Rs 1,030
EV/EBITDA Of 38.4x & 23.4x respectively. Valuations are steep for 26% PAT CAGR forecast over FY17-20.
Brokerage: HSBC | Rating: Reduce| Target: Rs 1,090
HSBC has retained reduce rating on the stock with a target of Rs 1,090. According to firm, the rail traction drives business and mechanical drives business to its parent. This is third instance of business divesture, which is not good news for shareholders.
At 11:19 hrs Siemens was quoting at Rs 1,174.70, down Rs 24.45, or 2.04 percent on the BSE.
The company's trailing 12-month (TTM) EPS was at Rs 32.67 per share. (Dec, 2017). The stock's price-to-earnings (P/E) ratio was 35.96. The latest book value of the company is Rs 216.35 per share.
Posted by Rakesh Patil
