11 May 2021
2QFY21 Results Update | Sector: Capital Goods
Siemens
Neutral
Estimate change
TP change
Rating change
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Financials & Valuations (INR b)
Y/E Sep
2020 2021E
Sales
98.7
128.3
EBITDA
9.9
15.3
PAT
7.6
11.3
EBITDA (%)
10.0
11.9
EPS (INR)
21.3
31.8
EPS Gr. (%)
-32.6
49.3
BV/Sh. (INR)
266.1
291.4
Ratios
Net D/E
-0.6
-0.4
RoE (%)
8.0
10.9
RoCE (%)
8.4
11.4
Payout (%)
20.0
20.0
Valuations
P/E (x)
91.6
61.3
P/BV (x)
7.3
6.7
EV/EBITDA (x)
64.4
42.3
Div Yield (%)
0.4
0.3
FCF Yield (%)
1.4
2.0
CMP: INR1,949
TP: INR1,700 (-13%)
In-line earnings; margins surprise
SIEM IN
356
694.1 / 9.5
2055 / 990
6/29/34
1959
Cash generation remains strong, with focus on working capital
2022E
146.6
17.5
13.0
11.9
36.4
14.6
319.1
-0.5
11.4
11.8
20.0
53.5
6.1
36.6
0.4
1.8
Siemens (SIEM)’s 2QFY21 revenue growth of ~28% YoY suggests gradual
recovery – as the two-year revenue CAGR came in flat. Gross margins
contracted YoY, while EBITDA doubled – aided by lower employee costs (-
11% YoY) and other expenses (-33% YoY). Adjusted for strong cuts in other
expenses (7.3% of sales v/s 13.8% in 2QFY20), the margin trend seems to be
under pressure and needs monitoring over the next 1–2 quarters. Other
income declined 33% YoY to INR540m, despite a healthy cash balance,
suggesting the impact of declining interest rates on excess cash on the
balance sheet.
Smart Infrastructure and Digital Industries witnessed a strong rebound.
Order inflows stood at INR33b (up 17% YoY), with increased demand in the
Power Transmission, Digital Grid, and Distribution Systems businesses.
Within the Digital Industries segment, the Machine Tool and Process
Automation businesses saw healthy growth. The order book stood at
INR127b.
While the pace of recovery is very gradual, re-rating of the stock has been
quite steep. The ongoing second COVID wave poses a risk to execution. We
cut our FY21E EPS by 9%, while we maintain our FY22/FY23E EPS estimates.
We maintain our Neutral rating with TP of INR1,700 per share (42x Mar’23E
EPS). We prefer ABB over SIEM at current valuations.
Margin surprise offsets minor revenue miss
Shareholding pattern (%)
As On
Promoter
DII
FII
Others
Mar-21 Dec-20 Mar-20
75.0
75.0
75.0
10.6
10.6
10.2
4.4
4.2
4.2
10.1
10.2
10.6
FII Includes depository receipts
2QFY21 highlights:
Revenue grew 28% YoY to INR33.5b and
was 6% below
our estimate.
Gross profit grew just 6% to INR10.5b as gross margins
contracted to 31.4% (1QFY21: 31.7%; 2QFY20: 37.9%). EBITDA doubled to
INR4.4b and
was 10% ahead of our expectation,
led by 11.4% YoY decline in
employee costs. The EBITDA margin came in at 13.2% (+490bps YoY), far
ahead of our expectation of 11.3%. Adj. PAT almost doubled to INR3.2b and
was in line with our expectation.
Owing to normalized operations and the focus on working capital, CFO was
robust at INR7.3b, while FCF stood at INR6.7b.
Segmental highlights – a) Energy:
Revenue grew 16% YoY to INR11.9b. PBIT
margins came in strong at 15.1%.
b) Smart Infrastructure:
Revenue grew
35% YoY to INR10.5b. PBIT margins came in at 9.1%.
c) Mobility:
Revenue
was flat at INR2.3b. PBIT margins came in at 10.1%.
d) Digital Industries:
Revenue was up 50% YoY to INR7.9b. PBIT margins came in at 8.7%.
e)
Portfolio of companies:
Revenue grew 40% YoY to INR1.3b. The EBIT margin
stood at 9.6%.
Valuation and view
We cut our FY21E EPS by 9%, while we maintain our FY22/FY23E EPS
estimates.
Nilesh Bhaiya – Research Analyst
(Nilesh.Bhaiya@MotilalOswal.com)
Pratik Singh – Research Analyst
(Pratik.Singh@MotilalOswal.com)
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.
 Motilal Oswal Financial Services
Siemens
We like SIEM’s product portfolio and diverse end-market exposure. The
company is poised to benefit over the long term, led by the niche Industrial
Automation and Digitalization businesses. However, re-rating of the stock has
been quite steep. Adjusted for strong cuts in other expenses (7.3% of sales v/s
13.8% in 2QFY20), the margin trend seems to be under pressure. We maintain
our Neutral rating with TP of INR1,700 per share (42x Mar’23E EPS). We prefer
ABB over SIEM at current valuations.
FY20
2Q
3Q
26.2
12.1
-26.1 -62.2
2.2
0.0
-48.8 -100.3
8.3
-0.1
0.7
0.7
0.1
0.0
0.8
0.8
0.1
-0.1
2.2
0.1
0.6
0.1
25.8
54.8
1.7
-0.1
1.6
0.0
-44.4 -98.1
FY21E
2Q
3Q
33.5
25.2
27.9 108.3
4.4
2.6
102.7
NM
13.2
10.3
0.6
0.6
0.0
0.1
0.5
0.6
0.1
0.0
4.3
2.5
1.2
0.6
27.0
25.2
3.3
1.9
3.2
1.9
91.7
NM
MOSFL
2QE
35.8
36.4
4.0
85.0
11.3
0.6
0.0
0.7
0.3
4.1
1.0
25.2
3.4
3.0
91.3
(INR b)
Var %
-6%
10%
Quarterly Performance
Y/E September
Total Revenues
Change (%)
EBITDA
Change (%)
As % of Revenues
Depreciation
Interest
Other Income
Extra-ordinary Items
PBT
Tax
Effective Tax Rate (%)
Reported PAT
Adjusted PAT
Change (%)
1Q
25.2
-10.2
3.2
4.6
12.7
0.6
0.1
0.9
0.1
3.4
0.9
25.6
2.6
2.5
11.8
4Q
35.2
-9.2
4.5
5.7
12.9
0.6
0.1
0.6
-0.1
4.5
1.1
25.2
3.3
3.3
-4.7
1Q
29.0
15.1
3.6
12.7
12.4
0.6
0.0
0.6
0.3
3.5
0.9
25.7
2.9
2.6
2.9
4Q
40.6
15.4
4.7
4.0
11.6
0.6
0.0
0.7
0.0
4.7
1.1
23.1
3.6
3.6
9.3
FY20
98.7
-24.1
9.9
-34.5
10.0
2.5
0.3
3.1
0.0
10.2
2.6
25.8
7.6
7.6
-32.6
FY21E
128.3
30.0
15.3
54.7
11.9
2.4
0.2
2.3
0.4
15.1
3.8
25.2
11.7
11.3
49.3
6%
-3%
4%
Exhibit 1: Segmental snapshot according to new classification
Revenue (INR m)
Energy
Smart Infrastructure
Mobility
Digital Industries
Portfolio of Companies
Others
Gross Sales
Elimination
Net Sales
EBIT (INR m)
Energy
Smart Infrastructure
Mobility
Digital Industries
Portfolio of Companies
Others
Total EBIT
EBIT Margin (%)
Energy
Smart Infrastructure
Mobility
Digital Industries
Portfolio of Companies
Others
Total EBIT
2QFY20
10,267
7,745
2,378
5,267
933
243
26,833
609
26,224
887
26
271
263
71
7
1,525
8.6
0.3
11.4
5.0
7.6
2.9
5.8
1QFY21
10,169
8,821
1,864
7,699
936
184
29,673
662
29,011
1,277
663
168
802
50
35
2,995
12.6
7.5
9.0
10.4
5.3
19.0
10.3
2QFY21
11,913
10,455
2,341
7,917
1,305
293
34,224
681
33,543
1,804
952
237
686
125
29
3,833
15.1
9.1
10.1
8.7
9.6
9.9
11.4
YoY (%)
16%
35%
-2%
50%
40%
21%
28%
28%
103.4
3,561.5
-12.5
160.8
76.1
314.3
151.3
11 May 2021
2
 Motilal Oswal Financial Services
Siemens
Exhibit 2: Revenue breakdown (FY20)
Portfolio of
companies
4%
Digital
Industries
19%
Mobility
8%
Others
1%
10%
Energy
40%
Exhibit 3: Expect 13% revenue CAGR over FY21–23E
19%
13%
14%
11%
13%
Smart
Infrastructure
28%
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 4: Share of product business on an uptrend
Project
51%
Product/System
Exhibit 5: EBITDA margin trend
EBITDA margin (%)
9.3
9.4
9.5
10.3
11.6
10.0
11.9
11.9
12.1
58%
65%
72%
68%
66%
67%
69%
49%
42%
35%
28%
32%
34%
33%
31%
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 6: Uptrend in RoE/RoCE to continue from FY21E
RoE
15.2
12.8
11.8
9.3
9.1
13.3
11.0 11.2
10.8
12.7
12.4
8.4
8.0
RoCE
Exhibit 7: Expect ~15% PAT CAGR over FY21–23E
174
PAT (INR b)
YoY (%)
12.2
11.4 11.8
11.9
10.9 11.4
6
5
6
11
7
27
9
26
11
8
-33
49
15
11
13
14
15
10.1
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 8: We cut our FY21E EPS estimate by 9%; we largely maintain our EPS estimates for FY22/FY23E
INR m
Revenue
EBITDA
EBITDA margin
Adj. PAT
FY21E
1,38,700
16,247
11.7%
12,455
Old
FY22E
1,52,260
17,861
11.7%
13,141
FY23E
1,67,201
19,848
11.9%
14,949
FY21E
1,28,321
15,321
11.9%
11,310
New
FY22E
1,46,625
17,496
11.9%
12,961
FY23E
1,62,472
19,594
12.1%
14,821
FY21E
-7
-6
0.2
-9
Change
FY22E
FY23E
-4
-3
-2
-1
0.2
0.2
-1
-1
Source: MOFSL, Company
11 May 2021
3
 Motilal Oswal Financial Services
Siemens
Exhibit 9: Our target price stands at INR1,700/share
Valuation
Core business
Acquisition of C&S
Total
Basis
Mar'23E P/E
Transaction value
Multiple (x)
42.0
Mar'23E EPS
39.0
Value/share
1,640
60
39.0
1,700
Source: MOFSL, Company
Valuation and view
Beneficiary of Digitalization and Automation trends:
While capex recovery
continues to be elusive, we are seeing a strong trend in Digitalization and
Automation – as industries aim to improve their operational efficiencies. SIEM
and ABB are seeing robust momentum in their respective segments, along with
margin expansion.
Rising share of Products and Services businesses augurs well for margins:
The
EBIT margin increased to 11.4% in 2QFY21 from 7.2% in FY15. With expansion in
the Products and Services businesses, margins are expected to increase in FY21E
(after the slump witnessed in FY20). The rise in EBIT is primarily attributable to:
(a) expansion in the Products and Services businesses and (b) the completion of
early loss-making/low-margin projects and execution of high-margin business.
Maintain Neutral:
We reduce our FY21E EPS estimate by 9%, while we broadly
maintain our FY22/FY23E EPS estimates. We like SIEM’s product portfolio and
diverse end-market exposure. The company is poised to benefit over the long
term, led by the niche Industrial Automation and Digitalization businesses. The
pace of recovery is very gradual, while re-rating of the stock has been quite
steep. Adjusted for strong cuts in other expenses (7.3% of sales v/s 13.8% in
2QFY20), the margin trend seems to be under pressure. We maintain our
Neutral rating with TP of INR1,700 per share (42x Mar’23E EPS). We prefer ABB
over SIEM at current valuations.
11 May 2021
4
 Motilal Oswal Financial Services
Siemens
Financials and valuations
Income Statement
Y/E September
Total Revenue
Change (%)
EBITDA
% Change
% of Total Revenue
Depreciation
Interest
Other income
Exceptional items
PBT
Tax
Rate (%)
Reported PAT
Adjusted PAT
Change (%)
Balance Sheet
Y/E September
Share Capital
Reserves
Net Worth
Loans
Net Deferred Tax Liability
Capital Employed
Gross Fixed Assets
Less: Depreciation
Net Fixed Assets
Capital WIP
Investments
Curr. Assets
Inventory
Debtors
Cash and Bank Balance
Loans and Advances
Other Assets
Current Liab. and Prov.
Creditors
Other Liabilities
Provisions
Net Current Assets
Application of Funds
FY18
127.3
15.5
13.2
25.2
10.3
2.0
0.1
2.8
0.0
13.9
5.0
35.7
8.9
8.9
27.1
FY18
0.7
82.3
83.1
0.0
-2.7
80.4
19.6
6.1
13.5
0.6
0.6
125.1
11.4
37.3
36.5
8.7
31.3
59.4
30.3
18.1
11.0
65.7
80.4
FY19
130.0
2.2
15.1
14.8
11.6
2.0
0.1
3.9
-0.4
16.6
5.7
34.5
10.9
11.2
25.6
FY19
0.7
89.7
90.4
0.0
-2.4
88.0
19.7
7.8
11.9
0.6
0.6
136.7
11.0
38.8
48.9
8.5
29.5
61.7
32.9
17.0
11.7
75.0
88.0
FY20
98.7
-24.1
9.9
(34.5)
10.0
2.5
0.3
3.1
0.0
10.2
2.6
25.8
7.6
7.6
(32.6)
FY20
0.7
94.0
94.7
0.0
-2.5
92.3
20.4
8.7
11.7
0.9
0.6
141.1
11.1
32.1
55.5
7.8
34.7
61.9
27.9
22.1
12.0
79.2
92.3
FY21E
128.3
30.0
15.3
54.7
11.9
2.4
0.2
2.3
0.4
15.5
3.8
24.5
11.7
11.3
49.3
FY21E
0.7
103.0
103.7
0.0
-2.5
101.3
21.4
11.1
10.3
0.9
21.8
146.3
14.4
41.7
45.0
7.8
37.4
77.9
36.3
26.1
15.5
68.3
101.3
FY22E
146.6
14.3
17.5
14.2
11.9
2.5
0.2
2.5
0.0
17.3
4.4
25.2
13.0
13.0
14.6
FY22E
0.7
112.9
113.6
0.0
-2.5
111.1
22.4
13.6
8.8
0.9
21.8
168.7
16.4
47.6
54.1
7.8
42.7
89.0
41.4
29.8
17.8
79.7
111.1
(INR b)
FY23E
162.5
10.8
19.6
12.0
12.1
2.6
0.2
3.0
0.0
19.8
5.0
25.2
14.8
14.8
14.4
(INR b)
FY23E
0.7
124.1
124.9
0.0
-2.5
122.4
23.4
16.1
7.2
0.9
21.8
191.2
18.2
52.8
65.1
7.8
47.3
98.7
45.9
33.1
19.7
92.5
122.4
11 May 2021
5
 Motilal Oswal Financial Services
Siemens
Financials and valuations
Ratios
Y/E September
Basic (INR)
Adjusted EPS
Cash EPS
Book Value
DPS
Payout (incl. Div. Tax.)
Valuation (x)
P/E
Cash P/E
EV/EBITDA
EV/Sales
Price/Book Value
Dividend Yield (%)
Return Ratios (%)
RoE
RoCE
RoIC
Turnover Ratios
Debtors (Days)
Inventory (Days)
Creditors (Days)
Asset Turnover (x)
Leverage Ratio
Net Debt/Equity (x)
Cash Flow Statement
Y/E March
PBT before EO Items
Depreciation
Interest and other
Direct Taxes Paid
(Inc.)/Dec. in WC
Others
CF from Operations
(Inc.)/Dec. in FA
Free Cash Flow
(Pur.)/Sale of Investments
CF from Investments
(Inc.)/Dec. in Net worth
Interest Paid
Dividend Paid
CF from Fin. Activity
Inc./Dec. in Cash
Add: Beginning Balance
Closing Balance
FY18
25.1
30.6
233.3
7.0
20.0
77.6
63.6
49.9
5.2
8.4
0.4
10.8
11.2
20.8
107
33
87
1.6
(0.4)
FY18
13.9
2.0
0.0
5.0
-10.7
0.0
0.2
-1.6
-1.3
0.0
-1.6
0.1
0.1
3.0
-3.0
-4.3
40.7
36.5
FY19
31.5
37.1
254.0
7.0
20.0
61.8
52.5
42.7
5.0
7.7
0.4
12.4
12.7
28.6
109
31
92
1.5
(0.5)
FY19
17.0
2.0
0.1
-6.1
4.4
-1.9
15.5
-0.1
15.3
0.2
0.1
0.0
0.1
3.0
-3.1
12.5
36.5
48.9
FY20
21.3
28.3
266.1
7.0
20.0
91.6
68.8
64.4
6.5
7.3
0.4
8.0
8.4
19.3
119
41
103
1.1
(0.6)
FY20
10.2
2.5
0.3
-2.9
-1.4
1.2
9.8
-0.1
9.7
0.7
0.6
0.0
0.8
3.0
-3.8
6.6
48.9
55.5
FY21E
31.8
38.4
291.4
6.4
20.0
61.3
50.8
42.3
5.1
6.7
0.3
10.9
11.4
36.6
119
41
103
1.3
(0.4)
FY21E
15.1
2.4
0.2
-3.8
0.4
0.4
14.6
-1.0
13.6
-21.2
-22.2
0.0
0.2
2.7
-2.9
-10.5
55.5
45.0
FY22E
36.4
43.4
319.1
7.3
20.0
53.5
45.0
36.6
4.4
6.1
0.4
11.4
11.8
41.0
119
41
103
1.3
(0.5)
FY22E
17.3
2.5
0.2
-4.4
-2.2
0.0
13.4
-1.0
12.4
0.0
-1.0
0.0
0.2
3.1
-3.3
9.1
45.0
54.1
FY23E
41.6
48.9
350.7
8.3
20.0
46.8
39.9
32.1
3.9
5.6
0.4
11.9
12.2
45.8
119
41
103
1.3
(0.5)
(INR b)
FY23E
19.8
2.6
0.2
-5.0
-1.9
0.0
15.7
-1.0
14.7
0.0
-1.0
0.0
0.2
3.6
-3.7
10.9
54.1
65.1
11 May 2021
6
 Motilal Oswal Financial Services
Siemens
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the
Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial products.
MOFSL is a subsidiary company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are available on
www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading
Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and National Commodity
& Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National Securities Depository
Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance Regulatory &
Development Authority of India (IRDA) as Corporate Agent for insurance products.
Details of associate entities of Motilal Oswal Financial Services Limited are available on the
website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and
buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other
compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have
any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report should
be aware that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant
banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental
research and Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from
MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or
use would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong
Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst
Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of
research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity
to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these
securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not
located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under
applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act"
and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and
investment services provided by MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is intended for
distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional
investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which this document
relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration provided by Rule
15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order
to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal Securities
International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public
appearances and trading securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
services license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and
Paragraph 11 of First Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL in
respect of any matter arising from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”, of
which some of whom may consist of "accredited" institutional investors as defined in section 4A(1) of the Securities and Futures Act, Chapter 289 of Singapore (“the
SFA”). Accordingly, if a Singapore person is not or ceases to be such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and
inform MOCMSPL.
Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
********************************************************************************************************************************
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7
 Motilal Oswal Financial Services
Siemens
The associates of MOFSL may have:
-
financial interest in the subject company
-
actual/beneficial ownership of 1% or more securities in the subject company
-
received compensation/other benefits from the subject company in the past 12 months
-
other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
-
acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
-
be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the
company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)
-
received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from
clients which are not considered in above disclosures.
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.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and
may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of
MOFSL. The report is based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in nature.
The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty,
representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The
report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial
instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not treat recipients as
customers by virtue of their receiving this report.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed,
in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose
and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this report
constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities
discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives,
financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this document
should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this document (including
the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not be
suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade securities - involve substantial
risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information and opinions
contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as
endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make modifications and
alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from time to time, effect
or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to perform investment
banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a separate, distinct and
independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that is already
available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the
views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other
person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of
or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject
MOFSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category
of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. Neither the Firm, not its directors,
employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may
arise from or in connection with the use of the information.
The person accessing this information specifically agrees to exempt MOFSL or any of its affiliates or employees from, any
and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold
MOFSL 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.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263; Website
www.motilaloswal.com.CIN
no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company
Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth Management
Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is a distributor of
Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. which is a
group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL. Research & Advisory
services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no assurance or guarantee
of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance Officer: Name: Neeraj
Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench.
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