Siemens share price: Neutral on Siemens, target price Rs 1640: Motilal Oswal

Motilal Oswal has neutral call on Ltd. with a target price of Rs 1640. The current market price of Siemens Ltd. is Rs 1846.05.

Siemens Ltd., incorporated in the year 1957, is a Large Cap company (having a market cap of Rs 66131.53 Crore) operating in Engineering sector.

For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 2983.30 Crore, down -17.34 % from last quarter Total Income of Rs 3609.30 Crore and up 7.63 % from last year same quarter Total Income of Rs 2771.90 Crore. Company reported net profit after tax of Rs 295.50 Crore in latest quarter.

Investment Rationale
The pace of recovery in very gradual, while a re-rating of the stock has been quite steep. Adjusted for strong cut in other expenses (5.6% of sales v/s 9.6% in 1QFY20), the margin trend seems to be under pressure.

Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of Dec 30, 2020, while FIIs held 4.2 per cent, DIIs 22.2 per cent and public and others 10.2 per cent.