SIEMENS LTD - Moneycontrol.comchats.moneycontrol.com/plus/upload_pdf_file/SIEMENS_HEM.pdf ·...
Transcript of SIEMENS LTD - Moneycontrol.comchats.moneycontrol.com/plus/upload_pdf_file/SIEMENS_HEM.pdf ·...
BROKING | DEPOSITORY | DISTRIBUTION | FINANCIAL ADVISORY|MERCHANT BANKING
SIEMENS LTD
Stock Coverage
www.hemsecurities.com
For Private Circulation Only HEM RESEARCH
Date 04th Jan 2019
BSE Code 500550
NSE Code SIEMENS
Market Cap (Rs Cr) 37910.78
52 week High/Low 1330/841
Industry Heavy Electrical
Equipment
Face Value Rs 2/Share
Shares O/S (In No) 35.61 Cr
EPS * 25.31
Book Value* 215.96
P/E 42.07
P/B 4.93
*Note: On FY’18 basis
Shareholding Pattern as on Sept’ 2018
Research Analyst : Astha Jain
With a focus on electrification, automation and digitalization, Siemens India stands for engineering excellence, innovation, and reliability. As one of the world’s biggest producers of energy-efficient, resource-saving technologies, Siemens is a pioneer in infrastructure and energy solutions, as well as automation and software for industry. The company is also a leader in medical imaging equipment, laboratory diagnostics, and clinical IT. Siemens also provides business-to-business financial solutions, rail automation and wind power solutions Siemens has 22 factories located across India, 8 Centers of Competence and 11 R&D Centers and a nation-wide sales and service network. The factories manufacture Steam Turbines, Switchgear, Remote Monitoring Systems (RMS), Motors and Generators, Relays and Smart Grid Systems, Transformers, Railway Bogies and X-ray Machines. These have been set up replicating global, best-in-class manufacturing systems and practices.
In Q4FY18 i.e Sept’18 company has reported surge of 25% in topline at Rs 3939.20 Cr as against Rs 3141.80 Cr in Q4FY17. Operating profit of company has reported rise of decent 32% at Rs 418.60 Cr as against Rs 317.20 Cr in Q4FY17. Company’s bottomline as shown rise of more than whopping 300% at Rs 279.20 Cr in Q4FY18 against Q4FY17 (calculated excluding Exceptional Income of Rs 560.30 Cr in Q4FY17). For the fourth quarter of Financial Year Sept’2018, new orders grew by 38.1% to Rs. 3,720 crore compared to Rs. 2,694 crore in the fourth quarter of Financial Year 2017. New Orders for the Financial Year 2018 were Rs. 12,740 crore. The order backlog as of September 30, 2018 stood at Rs. 12,352 crore.. Order inflows in company’s base business continue to grow, its profitability and cash from operations is strong and company’s digitalization agenda continues to gather momentum. Company is continuously driving on strong sectoral outlook. Demand for captive power plants is growing in fertilizer, sugar etc Also, replacement of ageing / inefficient power plants with super critical technology expected in the medium term which is positive for company. Capital expenditure is seen to be growing in some segments like automotive, pharmaceuticals, food & beverage. Along with above, strong interest in digitalization solutions for energy efficiency, enhanced productivity and flexibility will benefit company in long term.
Valuation
The company is currently trading at 42.07 of TTM eps of Rs 25.31 while it is trading at 35x of FY19E eps & 32x of FY20E eps. As private Capex picks up and more of company’s customers see real benefits in implementing digitalization, company will continue to benefit from that. Along with it, robust financial performance by company in year ending Sept’18 with healthy balance sheet makes a case for buy in stock with price target of Rs 1280 for long term horizon.
BUY CMP 1064.55 TARGET 1280.00 LONG TERM INVESTMENT
Promoter75%
FII 5%
Others20%
SIEMENS LTD
BROKING | DEPOSITORY | DISTRIBUTION | FINANCIAL ADVISORY|MERCHANT BANKING
www.hemsecurities.com
Business Segments Digital Factory Division offers software products and automation technologies for industrial applications covering the entire life cycle, from product design and production to after-sales service for discrete manufacturing industries such as automotive, F&B. Company offer products and solutions viz Automation system; Industrial control; Industrial communication; LV and MV Drives; Geared motors; Motion control; CNC solutions; Low voltage switchgear for switching, protection and control; PLM software and services Process Industries and Drives Division offers a comprehensive portfolio for industrial application and solutions in the field of automation and drives for process industries such as cement and steel. Company offer products and solutions viz Process automation; Integrated Drive Systems (IDS); Sensor systems; Plant engineering software; LV motors (upto frame size 560); MV motors (upto frame size 630); Traction motors; Mechanical drives; Windmill generators (≤ 1875 MW); Gear boxes Building Technologies Division provides solutions for safe, secure and energy-efficient infrastructure and buildings. Company offer products and solutions viz Building automation systems; HVAC products; Building control; Security systems; Fire safety systems; Energy efficiency systems ; Total Building Solutions ; Integrated systems and solutions for specific markets and industries such as data centers, utilities, airports, hospitals and hotels. Power and Gas Division offers products and solutions for reliable, efficient and clean power generation from fossil fuels and for oil & gas applications. Company offer products and solutions like Gas turbines (≤ 400 MW); Steam turbines (≤ 1900 MW); Generators (≤ 2235 MVA) ; Condensers ; Turbo compressors Instrumentation ,and control; Electrical balance of plant; Integrated power plant Solutions ; Energy solutions : Power block, Power island, complete lumpsum turnkey power plants on EPC basis. Energy Management Division is a supplier of products, solutions and services for the transmission and distribution of electrical energy. Company offer products and solutions viz Power transformers (≤750 MVA); Shunt reactors (≤ 125 MVAr); Protection relays and devices; AIS upto 800 kV; GIS upto 800 Kv ; Circuit breakers (≤ 800 kV); Disconnectors (≤ 765 kV); Instrument transformers; Control and relay panel (≤ 765 kV) ; LV /MV switchboards (≤ 40 kV). Mobility Division supplies solutions for passenger and freight transportation, including rail vehicles, rail automation and rail electrification systems. Company offers products and solutions like Propulsion systems ; Inverters ; Rail Signaling ; Rail electrification ; Rail automation ; Intelligent Traffic Management ; Light Rail; Metro Rail; Passenger coaches.
For Private Circulation Only HEM RESEARCH
\
0
5
10
15
20
Sales Profit fromoperations
Margin
14.2
2
14.214.8
2.5
16.6
Power & Gas (Rs Bn)
FY17 FY18
0
20
40
60
Sales Profit fromoperations
Margin
43.5
3.27.4
51.6
4.28.1
Energy Management (Rs Bn)
FY17 FY18
SIEMENS LTD
BROKING | DEPOSITORY | DISTRIBUTION | FINANCIAL ADVISORY|MERCHANT BANKING
www.hemsecurities.com
Robust Financial performance :
For the Financial Year 2018, Siemens Ltd. reported 14.6% increase in Revenue at Rs. 12,795.30 crore compared to Rs. 11403.40 crore for the Financial Year 2017. The Company’s Profit before exceptional items and tax increased by 26.3% to Rs. 1,391 crore for the Financial Year 2018 compared to Rs. 1,102 crore for the Financial Year 2017 (Profit from exceptional items before tax for the Financial year 2017 was Rs. 567 crore). Company’s operating profit margin increased by 12% at 10.37 % in FY18 as against 9.24% in FY17.For Q4FY18 company has reported surge of 25% in topline at Rs 3939.20 Cr as against Rs 3141.80 Cr in Q4FY17. Operating profit of company has reported rise of huge 32% at Rs 418.60 Cr as against Rs 317.20 Cr in Q4FY17. Company’s bottomline as shown rise of more than 300% at Rs 279.20 Cr in Q4FY18 against Q4FY17 (excluding Exceptional Item of Rs 560.30 Cr in Q4FY17),
Strong Sectoral Outlook
Company is continuously driving on strong sectoral outlook. Replacement of ageing / inefficient power plants with super critical technology expected in the medium term which is positive for company. Capital expenditure is seen to be growing in some segments like automotive, pharmaceuticals, food & beverage. Along with above, strong interest in digitalization solutions for energy efficiency, enhanced productivity and flexibility will benefit company in long term.
For Private Circulation only HEM RESEARCH
0
5
10
15
20
25
Sales Profit fromoperations
Margin
19.1
1.2
6.4
22.7
2
8.7
Digital Factory (Rs Bn)
FY17 FY18
0
5
10
15
20
Sales Profit fromoperations
Margin
17.2
0.5
3.1
19.2
0.8
4
Process Industries & Drives (Rs Bn)
FY17 FY18
0
2
4
6
8
10
Sales Profit fromoperations
Margin
4.2
0.3
6.8
4.9
0.4
9.1
Building Technologies (BT) (Rs Bn)
FY17 FY18
0
2
4
6
8
10
12
Sales Profit fromoperations
Margin
11.9
0.9
7.6
9.8
1
10.1
Mobility (Rs Bn)
FY17 FY18
SIEMENS LTD
BROKING | DEPOSITORY | DISTRIBUTION | FINANCIAL ADVISORY|MERCHANT BANKING
www.hemsecurities.com
Healthy Order Book For the fourth quarter of Financial Year 2018, new orders grew by 38.1% to Rs. 3,720 crore compared to Rs. 2,694 crore in the fourth quarter of Financial Year 2017. New Orders for the Financial Year 2018 were Rs. 12,740 crore. The order backlog as of September 30, 2018 stood at Rs. 12,352 crore.. Recently, the consortium of TRIL Urban Transport Private Limited (a Tata Group Company), and Siemens Project Ventures GmbH (subsidiary of Siemens Financial Services), has been awarded the contract by the Pune Metropolitan Region Development Authority to develop the metro corridor from Hinjewadi to Shivajinagar. The elevated metro line will originate from Hinjewadi Rajiv Gandhi Infotech Park, travel via Balewadi to Shivajinagar. The 23.3 kms corridor with 23 stations will be the first metro project in India on Public-Private-Partnership (PPP) model after the New Metro Rail Policy of 2017. The construction is scheduled to commence by June 2019 and completed within a time span of three years. Tata Projects will be the EPC partner supporting the consortium. Siemens has been partnering India for over 150 years in the areas of electrification and automation. It has been contributing to India's long-term growth story through its sustainable technologies, deep solution expertise, global project experience and strong local manufacturing presence. Siemens Financial Services (SFS) invests in infrastructure projects around the world, with great potential in India. Through PPPs, SFS is able to help cities meet their goals of obtaining intelligent infrastructure solutions and enable smarter, more sustainable transportation networks.
0
50
100
FY17 FY18
18.5 20.4
81.5 79.6
% Revenue Break Up
Export Domestic
For Private Circulation only HEM RESEARCH
0
50
100
FY17 FY18
26 29.8
74 70.2
Business Mix ( In %)
Government Non Government
0
50
100
FY17 FY18
18.5 20.4
81.5 79.6
% Revenue Break Up
Export Domestic
112114116118120122124126128
FY17 FY18
118.2
127.4Order (Rs Bn)
0
20
40
60
80
100
FY17 FY18
33.1% 36 %
66.9% 64%
Project Product System
For Private Circulation only HEM RESEARCH
BROKING | DEPOSITORY | DISTRIBUTION | FINANCIAL ADVISORY|MERCHANT BANKING
www.hemsecurities.com
SIEMENS LTD
Consolidated P&L A/c
Rs Cr
Particulars FY16 FY17 FY18 FY19E FY20E
Net Sales 10836.60 11064.70 12795.30 14714.60 15891.76 Growth ( %) ---- 2.10 15.64 15.00 8.00 Expenditure 9790.20 9986.20 11468.00 13169.56 14197.70 EBIDTA 1046.40 1078.50 1327.30 1545.03 1694.06 Growth (%) --- 3.07 23.07 16.40 9.65 EBIDTA Margin (%)
9.66 9.75 10.37 10.50 10.66
Other Income 164.20 253.20 280.10 322.12 347.88 Depreciation 227.60 197.80 197.70 227.36 245.54 EBIT 983.00 1133.90 1409.70 1639.80 1796.40 EBIT Margin (%) 9.07 10.25 11.02 11.14 11.30 Interest 37.10 32.30 8.20 8.20 8.20 Exceptional Item 2992.30 567.30 0.00 0.00 0.00 PBT 3938.20 1668.90 1401.50 1631.60 1788.20 Tax 1024.50 532.30 500.30 538.43 590.11 PAT 2913.70 1136.60 901.20 1093.17 1198.09 Min Int & Ass Sh 0.00 0.00 0.00 0.00 0.00 Consolidated PAT 2913.70 1136.60 901.20 1093.17 1198.09 Growth (%) --- (60.99) (20.71) 21.30 9.60 NPM (%) 26.89 10.27 7.04 7.43 7.54
Ratios
Particulars FY16 FY17 FY18 FY19E FY20E
EPS 81.82 31.92 25.31 30.70 33.364
ROCE(%) 102.03 29.50 16.99 19.21 18.94
ROE(%) 42.83 14.78 10.86 12.81 12.63
Book Value 191.06 215.97 233.05 239.67 266.33
Debt/Equity 0.00 0.00 0.00 0.00 0.00
BROKING | DEPOSITORY | DISTRIBUTION | FINANCIAL ADVISORY|MERCHANT BANKING
www.hemsecurities.com
VIP INDUSTRIES LTD
Consolidated Balance Sheet
Rs Cr
Particulars FY16 FY17 FY18 FY19E FY20E
Sh Capital 71.20 71.20 71.20 71.20 71.20
Res & Surplus 6732.50 7619.40 8227.70 8463.57 9412.66
Sh App/Warrants 0.00 0.00 0.00 0.00 0.00
Minority Interest 0.00 0.00 0.00 0.00 0.00
Total Debt(Long Term+Short Term Borrowings)
25.20 0.00 0.00 0.00 0.00
Other Long Term Liab & Provision
3842.62 3390.00 275.90 314.31 335.79
Net Deferred Tax Liability
-335.80 -248.20 -269.70 -269.70 -269.70
Sources Of Fund 10335.70 10832.40 8305.10 8579.38 9549.95
Net Fixed Assets 1306.20 1400.10 1311.30 1371.90 1431.79
Non –Current Investments
109.70 107.90 104.20 104.20 104.20
Intangible Assets 0.00 0.00 0.00 0.00 0.00
Other Non –Current Assets
4465.60 4226.00 1557.40 1791.01 1805.44
Total Current Assets 10219.50 12431.60 11093.70 12757.76 13778.38
Current Liabilities & Provisions
5765.30 7333.20 5761.50 7445.49 7569.88
Net Current Assets 4454.20 5098.40 5332.20 5312.27 6208.50
Uses Of Funds 10335.70 10832.40 8305.10 8579.38 9549.93
For Private Circulation only HEM RESEARCH
BROKING | DEPOSITORY | DISTRIBUTION | FINANCIAL ADVISORY|MERCHANT BANKING
www.hemsecurities.com
SIEMENS LTD
Standalone Quarterly Financial Highlights
Rs Cr Rs. Crore
Particulars Q4FY18 Q4FY17 Q3FY18 YoY% QoQ%
Total Income 3939.20 3141.80 3073.00 25.38 28.19
Total Expenses 3520.60 2824.60 2770.70 24.64 27.07
Operating Profit 418.60 317.20 302.30 31.97 38.47
Net Profit 279.20 623.80* 204.40 (55.24) 36.59
PBIDTM % 10.63 10.10 9.84 5.25 8.03
NPM % 7.09 19.85 6.65 (64.30) 6.62
EPS 7.84 17.52 5.74 (55.24) 36.59
*:Note:( PAT Includes Exceptional Income of Rs 560.30 Cr)
Past Price Movement
For Private Circulation only HEM RESEARCH
10 17 24 1
October
8 15 22 29 5
November
12 19 26 3
December
10 17 24 31
2019
7 14 21
5000
10000
x10
5000
10000
x10
830
840
850
860870
880
890
900910
920
930
940
950960
970
980
9901000
1010
1020
10301040
1050
1060
10701080
1090
830
840
850
860870
880
890
900910
920
930
940
950960
970
980
9901000
1010
1020
10301040
1050
1060
10701080
1090SIEMENS LTD (1,048.00, 1,068.30, 1,035.60, 1,064.55, +19.8000)
www.hemsecurities.com
HEM SECURITIES LIMITED
MEMBER-BSE,CDSL,SEBI REGISTERED CATEGORY I MERCHANT BANKER
Sebi Registration No For Research Analyst: INH100002250
MUMBAI OFFICE: 904, A WING. 9TH FLOOR, NAMAN MIDTOWN, SENAPATI BAPAT MARG, ELPHINSTONE ROAD, LOWER PAREL ,MUMBAI -400013 PHONE- 0091 22 49060000 FAX- 0091 22 2262 5991
JAIPUR OFFICE: 203-204, JAIPUR TOWERS, M I ROAD, JAIPUR-302001 PHONE- 0091 141 405 1000 FAX- 0091 141 510 1757
GROUP COMPANIES
HEM FINLEASE PRIVATE LIMITED
MEMBER-NSE
HEM MULTI COMMODITIES PRIVATE LIMITED
MEMBER-NCDEX, MCX
HEM FINANCIAL SERVICES LIMITED
NBFC REGISTERED WITH RBI
Disclaimer & Disclosure: This document is prepared for our clients only, on the basis of publicly available information and other sources believed to be reliable. Whilst we are
not soliciting any action based on this information, all care has been taken to ensure that the facts are accurate, fair and reasonable. This information is not intended as an
offer or solicitation for the purchase or sell of any financial instrument and at any point should not be considered as an investment advice. Reader is requested to rely on his
own decision and may take independent professional advice before investing. Hem Securities Limited, Hem Finlease Private Limited, Hem Multi Commodities Pvt. Limited,
Directors and any of its employees shall not be responsible for the content. The person accessing this information specifically agrees to exempt Hem Securities Limited, Hem
Finlease Private Limited, Hem Multi Commodities Pvt. Limited or any of its affiliates or employees from, any and all responsibility/liability arising from such misuse and further
agrees to hold Hem Securities Limited, Hem Finlease Private Limited, Hem Multi Commodities Pvt. Limited or any of its affiliates or employees free and harmless from all
losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and delays. The companies and its affiliates, officers,
directors, and employees, including persons involved in the preparation or issuance of this material may from time to time, have long or short positions in, and buy or sell the
securities there of, company (ies) mentioned herein and the same have acted upon or used the information prior to, or immediately following the publication.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Disclosure of Interest Statement
1. Analyst Ownership of the Stocks No
2. Hem & its Group Company Ownership of the Stock No
3. Hem & its Group Company Director Ownership of the Stock No
4. Broking relationship with Company covered No