This Multinational Engineering Stock Is Good To Accumulate, Says PL

Amit Anwani, Research Analyst at Prabhudas Lilladher Pvt Ltd has recommended an accumulate on the stock of Engineering giant Siemens. The brokerage has a price target of Rs 3290 on the stock of Siemens.

Huge order

• Siemens to deliver 1,200 electric locomotives (9000hp) over 11-year period and provide 35 years of full service maintenance.
• It is single biggest order in the history of Siemens Ltd in India.
• Siemens will design, manufacture, commission and test the locomotives.
• The state-of-the-art locomotives will be used for freight transport throughout the Indian Railways network and are specified to haul loads of 4,500 tons at a maximum speed of 120 km per hour.
• Locomotive will be equipped with advanced propulsion systems that are produced locally in Siemens factories in India.
• The locomotives will be assembled in the Indian Railways factory in Dahod, Gujarat. Maintenance will be performed in four Indian Railways depots located in Vishakhapatnam, Raipur, Kharagpur and Pune.

Prabhudas Lilladher View

"We believe, this order win will boost Siemens Motion business revenue growth going forward. We remain positive on SIEM from a long-term perspective given its 1) strong and diversified presence across industries, 2) focus on digitization and automation products, 3) product localization and 4) healthy balance sheet. The stock is currently trading at PE of 61.4x/52.1x/45x SY23E/24E/25E earnings. We have Accumulate rating on stock with target price of Rs 3,290, valuing it at PE of 54x Mar'25," the brokerage has said. 

Disclaimer

The stock has been picked from the brokerage report of Prabhudas Lilladher. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.