Motilal Oswal's research report on Siemens
After the brief resumption of execution over 1HFY21, the second COVID wave once again disrupted the end markets. While capex in the Automobile sector remained subdued in FY21, end markets such as Pharmaceuticals, Food and Beverages, Metro, Railways, Steel and Cement, and Power T&D saw an uptick in ordering activity. In the Buildings segment, while ordering activity declined for the industry, it stood flat YoY for Siemens (SIEM) as it was able to tap certain pockets of growth.
Outlook
We maintain our estimates and remain Neutral, with TP of INR2,065/share (core business: 42x FY24E EPS). We prefer ABB over SIEM at current valuations to play the niche theme of Industrial Automation and LT to play the capex cycle recovery.
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