21 November 2019
4QFY19 Results Update | Sector: Capital Goods
Siemens
Buy
BSE SENSEX
40,575
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
S&P CNX
11,968
SIEM IN
Order inflow disappoints; focus on profitable growth
356
Earnings underperformance attributed to margin miss:
Revenue grew 4.8%
549.7 / 7.7
to INR41.3b (in-line) in 4QFY19 (year ending September). EBITDA margin
1717 / 902
shrank 80bp YoY to 9.8% (our estimate: 11.0%). Thus, EBITDA declined 3.1%
-12/24/53
740
YoY to INR4.1b (13% miss). Adjusted for one-off income of INR473m toward
25.0
monetization of property, PBT was flat YoY at INR4.3b. Due to re-
CMP: INR1,544
TP: INR1,792(+16%)
Financials & Valuations (INR b)
2019 2020E
Y/E Sep
136.8
150.4
Net Sales
14.8
17.5
EBITDA
10.9
14.5
PAT
30.5
40.6
EPS (INR)
21.6
33.0
Gr. (%)
254.0
284.9
BV/Sh (INR)
12.0
14.3
RoE (%)
12.4
14.7
RoCE (%)
50.5
38.0
P/E (x)
6.1
5.4
P/BV (x)
2021E
169.1
20.2
16.8
47.2
16.1
320.7
14.7
15.1
32.7
4.8
Estimate change
TP change
Rating change
measurement of DTA, the effective tax rate was at 32.2%. Adj. PAT was up
5.7% YoY to INR2.9b.
For FY19, revenue/EBITDA/adj. PAT grew 7.5%/17.9%/26.1%. Operating cash
flow was strong at INR12.3b v/s INR422m last year, led by an improvement
in working capital. Net working capital as a percentage of sales improved to
69.6 days from 83.9 days in FY18.
Segmental performance:
(a) Gas & Power revenue grew 11.9% YoY to
INR16.3b; PBIT margin expanded 40bp YoY to 10.8%. (b) Smart
Infrastructure revenue was down 9.2% YoY to INR11b; PBIT margin was at
9.3% (+230bp YoY). (c) Mobility revenue was flattish at INR3.6b; PBIT margin
shrank 510bp YoY to 10.5%. (d) Digital Industries revenue grew at a paltry
3.8% to INR7.2b; PBIT margin expanded 140bp YoY to 7.8%. (e) Portfolio of
Companies revenue grew 17.6% YoY to INR3.9b, but PBIT margin was at -
6.2% v/s +6.3% last year due to one-off employee expense (led by VRS and
inventory led provision).
Lower order inflow, stable book-to-bill ratio:
Order inflow declined 14.3%
YoY to INR31.9b in 4QFY19. SIEM let go some large orders which would have
affected profitability. For FY19, order book was down 3.8% YoY at INR119b.
However, book to bill stood at ~1x, which management believes is stable to
drive growth (peak book to bill was 1.2x).
Maintain BUY:
Our EPS estimate increase by 17%/19% in FY20/FY21 mainly
on account of lower tax rates. We roll forward our estimates to Sep’21E and
value SIEM at 38x Sep’21E EPS to arrive at a TP of INR1,792/share (prior:
INR1,290).
MOSLe
4QE
42,369
7.6
4,657
11.3
11.0
515
52
822
0
4,912
838
17.1
4,074
4,074
45.9
(INR m)
Var %
-2.6%
-12.9%
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
24,295
5.9
2,724
16.6
11.2
470
17
705
0
2,942
1,037
35.2
1,905
1,905
18.6
FY18
FY19
2Q
3Q
4Q
1Q
2Q
3Q
4Q
32,834 30,730 39,392 28,071 35,496 31,984 41,288
12.1
15.9
25.4
15.5
8.1
4.1
4.8
3,228 3,023 4,186 3,661 4,257 3,537 4,056
15.9
33.4
32.0
34.4
31.9
17.0
-3.1
9.8
9.8
10.6
13.0
12.0
11.1
9.8
490
500
507
532
571
512
558
11
4
51
2
24
2
86
639
692
764
877
830
825
941
0
0
0
-596
-157
0
354
3,366 3,211 4,392 3,408 4,335 3,848 4,707
1,169 1,167 1,600 1,128 1,532 1,367 1,401
34.7
36.3
36.4
33.1
35.3
35.5
29.8
2,197 2,044 2,792 2,280 2,803 2,481 3,306
2,197 2,044 2,792 2,876 2,960 2,481 2,952
22.6
25.5
39.1
51.0
34.7
21.4
5.7
FY18
FY19
1,27,251 1,36,839
17.7
7.5
13,161
15,511
25.2
17.9
10.3
11.3
1,967
2,173
82
114
2,800
3,473
0
-399
13,912
16,697
4,973
5,428
35.7
32.5
8,939
10,870
8,939
11,269
27.1
26.1
-4.2%
-18.9%
-27.5%
Nilesh Bhaiya – Research Analyst
(Nilesh.Bhaiya@MotilalOswal.com); +91 22 6129 1556
Pratik Singh – Research Analyst
(Pratik.Singh@MotilalOswal.com); +91 22 6129 1543
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
Siemens
Exhibit 1: Segmental snapshot according to the new classification
Revenues (INR m)
Gas and Power
Smart Infrastructure
Mobility
Digital Industries
Portfolio of Companies
Others
Gross Sales
Elimination
Net Sales
EBIT (INR m)
Gas and Power
Smart Infrastructure
Mobility
Digital Industries
Portfolio of Companies
Others
Total EBIT
EBIT Margin %
Gas and Power
Smart Infrastructure
Mobility
Digital Industries
Portfolio of Companies
Others
Total EBIT
4QFY18
14,583
12,111
3,552
6,923
3,354
295
40,818
1,426
39,392
1,520
853
553
443
211
99
3,679
10.4
7.0
15.6
6.4
6.3
33.6
9.3
1QFY19
10,336
7,778
1,745
6,398
2,142
219
28,618
548
28,070
2,000
771
-158
161
361
-7
3,128
19.3
9.9
(9.1)
2.5
16.9
(3.2)
11.1
2QFY19
12,588
9,958
3,380
7,009
3,004
331
36,270
774
35,496
1,603
1,000
610
505
-46
14
3,686
12.7
10.0
18.0
7.2
(1.5)
4.2
10.4
3QFY19
11,314
9,218
2,490
6,278
2,951
329
32,580
596
31,984
1,543
717
297
421
-173
220
3,025
13.6
7.8
11.9
6.7
(5.9)
66.9
9.5
4QFY19
16,321
10,996
3,588
7,189
3,945
312
42,351
1,063
41,288
1,765
1,028
377
561
-245
13
3,499
10.8
9.3
10.5
7.8
(6.2)
4.2
8.5
Change
YoY (%)
12%
-9%
1%
4%
18%
6%
4%
5%
16.1
20.5
-31.8
26.6
-216.1
-86.9
-4.9
39
231
-506
140
NA
NA
-86
FY19
50,559
37,950
11,203
26,874
12,042
1,191
1,39,819
2981
1,36,838
6,911
3,516
1,126
1,648
-103
240
13,338
13.7
9.3
10.1
6.1
(0.9)
20.2
9.7
Source: MOFSL, Company
Key takeaways from management meet:
On the current market condition:
Power segment: T&D has slowed down with orders in FY19 either flat or down
YoY. There is a lack of opportunity in mid-term in large thermal generation
projects. However, demand for industrial steam turbine has been robust across
sectors like steel, cement, chemicals, and to some extent, sugar.
Infrastructure segment: Large capex is either absent or deferred due to subdued
market conditions. However, orders for commercial building systems were
encouraging with demand for advanced security and energy efficiency solutions.
Over the last few months, even opex-related spend has been under pressure.
Segment:
Gas & power: Growth in service business and small turbines was offset by a
decline in large projects. Margins in FY19 had a 260bp impact of forex gains.
New orders were up by 6.8% YoY (INR45.1b) in FY19.
Smart infrastructure: Sectors like hospitality, commercial offices and data
centers led to growth, while there was a slowdown in utilities. Distribution
business faced increased competitive and price pressure. New orders were up
7.4% YoY (INR39.2b) in FY19.
Digital Industries: Sectors like F&B and pharma drove growth, while automobiles
saw slowdown in 2HFY19. New orders were up 10.6% YoY (INR26.5) in FY19.
21 November 2019
2
 Motilal Oswal Financial Services
Siemens
Mobility: Management let go some orders where pricing was aggressive and
would have affected profitability. Sales growth came from execution of order
backlog. New orders were down 42% YoY (INR8.6b) in FY19; however, adjusting
for large orders, new orders stood at INR7.5b (-12% YoY) in FY19. In FY18, there
were two large orders worth INR2.6b.
Portfolio of companies: Growth was mainly driven by wind industry. Margins
were impacted by one-time VRS expense and inventory provisions (both ~0.5b
each in FY19). New orders in FY19 were up 31.7% YoY (INR13b). Siemens had to
optimize this segment since operations were disjointed and profitability was
under stress due to large components being imported.
Other key takeaways:
Green energy corridor is an opportunity under T&D. However, the role of
Siemens will be towards the end of capex cycle, with ordering for
substations/transmission system done after the land has been acquired and civil
works completed.
Higher cash on balance sheet is due to: (1) tightness in market which has led to
an impact of receivables more critical on the balance sheet, (2) for any potential
acquisition targets, (3) and to continue with capex- and opex-related spends.
A few large HVDC orders are under discussion by the government in which
Siemens would like to participate: (a) India-Sri Lanka and (b) Leh-Ladakh link.
Under digitalization, there are 105 use cases across 18 industries with multiple
themes.
21 November 2019
3
 Motilal Oswal Financial Services
Siemens
Exhibit 2: Revenue breakdown (FY19)
Portfolio of
companies
9%
Others
1%
Gas and
Power
36%
7
Mobility
8%
Smart
Infrastructu
re
27%
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 3: Expect revenue CAGR of 11% over FY19-21
Total Revenue (INR b)
10
1
12
Growth YoY (%)
12
8
12%
Digital
Industries
19%
Exhibit 4: Share of product business has been on an uptrend
Project
Product/System
Exhibit 5: EBTIDA margin to expand over 120bp from FY19
to FY21
EBITDA margin (%)
9.3
9.4
9.5
10.3
10.8
11.6
12.0
42%
52%
58%
61%
65%
67%
64%
68%
58%
48%
42%
40%
35%
33%
36%
32%
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 6: RoEs and RoCEs to continue uptrend
19.0
14.0
9.0
4.0
RoE
RoCE
Exhibit 7: Siemens trades at a discount to its long-term
trading average
P/E (x)
Min (x)
90.0
70.0
50.0
30.0
10.0
49.1
34.2
25.7
64.0
44.1
Avg (x)
+1SD
Max (x)
-1SD
84.4
Source: MOFSL, Company
Source: MOFSL, Company
Exhibit 8: Earnings change table
Earnings Change
INRm
Revenue
EBITDA
EBITDA margin
Adj. PAT
Old
FY20E
1,50,851
16,740
11.1%
12,310
FY21E
1,69,649
19,429
11.5%
14,109
FY20E
1,50,381
17,491
11.6%
14,461
New
FY21E
1,69,136
20,231
12.0%
16,788
Change
FY20E
FY21E
-0
-0
4
0.5
17
4
0.5
19
Source: MOSL
21 November 2019
4
 Motilal Oswal Financial Services
Siemens
Financials and Valuations
Income Statement (Standalone)
Y/E September
Total Revenues
Change (%)
Raw Materials
Staff Cost
SGA Expenses
EBITDA
Change (%)
% of Total Rev.
Depreciation
Interest
Other Income
EO Items (net)
PBT
Tax
Rate (%)
PAT
Adjusted PAT
Change (%)
2015
1,05,124
-1.4
70,814
13,942
10,607
9,761
34
9.3
2,156
73
1,604
5,798
14,934
3,102
20.8
11,832
6,034
36.3
2016
1,08,094
2.8
71,812
14,139
11,940
10,203
5
9.4
2,264
91
1,645
22,825
32,318
3,148
9.7
29,170
6,345
5.2
2017
1,10,148
1.9
73,504
13,926
12,205
10,512
3
9.5
1,967
77
2,547
4,301
15,317
3,982
26.0
11,335
7,034
10.9
2018
1,27,251
15.5
85,864
14,487
13,739
13,161
25
10.3
1,967
82
2,800
0
13,912
4,973
35.7
8,939
8,939
27.1
2019
1,36,838
7.5
93,230
16,036
12,815
14,757
12
10.8
2,173
114
3,946
0
16,416
5,547
33.8
10,869
10,869
21.6
2020E
1,50,381
9.9
1,01,969
16,838
14,083
17,491
19
11.6
2,259
114
4,207
0
19,325
4,864
25.2
14,461
14,461
33.0
(INR M)
2021E
1,69,136
12.5
1,14,544
18,522
15,840
20,231
16
12.0
2,368
114
4,686
0
22,435
5,647
25.2
16,788
16,788
16.1
Balance Sheet (Standalone)
Y/E September
Share Capital
Reserves
Net Worth
Loans
Net Deferred Tax Liab
Capital Employed
Gross Fixed Assets
Less: Depreciation
Net Fixed Assets
Capital WIP
Investments
Curr. Assets
Inventory
Debtors
Cash & Bank Balance
Loans & Advances
Other Current assets
Current Liab. & Prov.
Creditors
Other Liabilities
Provisions
Net Current Assets
Application of Funds
2015
712
50,554
51,266
0
-3,175
48,092
28,802
15,269
13,533
321
1,764
86,485
9,509
30,183
20,959
14,958
10,875
54,011
24,863
12,687
16,460
32,474
48,092
2016
712
67,494
68,207
0
-3,350
64,856
29,803
15,959
13,844
0
550
99,042
9,993
30,533
35,094
3,425
19,997
48,579
19,386
18,030
11,163
50,462
64,856
2017
712
76,335
77,047
0
-2,442
74,605
17,502
4,158
13,344
1,430
550
1,13,465
10,165
34,725
40,713
6,216
21,646
54,184
26,556
17,377
10,251
59,281
74,605
2018
712
82,342
83,054
0
-2,665
80,389
19,574
6,060
13,514
624
550
1,25,139
11,389
37,250
36,457
8,733
31,310
59,438
30,303
18,123
11,012
65,701
80,389
2019
712
89,724
90,436
0
-2,410
88,026
20,137
8,233
11,904
583
550
1,36,657
10,950
38,762
48,913
8,513
29,519
61,668
32,907
17,025
11,736
74,989
88,026
2020E
712
1,00,714
1,01,426
0
-2,410
99,016
21,137
10,492
10,645
583
550
1,55,009
12,034
42,598
58,581
9,356
32,440
67,771
36,164
18,710
12,898
87,238
99,016
(INR M)
2021E
712
1,13,473
1,14,185
0
-2,410
1,11,775
22,137
12,859
9,278
583
550
1,77,588
13,535
47,911
69,134
10,522
36,486
76,223
40,674
21,043
14,506
1,01,365
1,11,775
21 November 2019
5
 Motilal Oswal Financial Services
Siemens
Financials and Valuations
Ratios
Y/E September
Basic (INR)
EPS
Growth (%)
Cash EPS
Book Value
DPS
Payout (incl. Div. Tax.)
Valuation (x)
P/E (Standalone)
Cash P/E
EV/EBITDA
EV/Sales
Price/Book Value
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
RoIC
Turnover Ratios
Debtors (Days)
Inventory (Days)
Creditors. (Days)
Asset Turnover (x)
Leverage Ratio
Debt/Equity (x)
2015
17.0
36.3
23.0
144.0
10.0
30.1
59.9
44.1
34.9
3.2
7.0
1.0
11.8
15.2
16.7
105
33
86
2.2
0.0
2016
17.8
5.2
24.2
191.6
33.5
40.9
56.9
42.0
32.0
3.0
5.3
3.3
9.3
13.3
17.5
103
34
65
1.7
0.0
2017
19.8
10.9
25.3
216.4
7.0
20.0
51.4
40.1
30.5
2.9
4.7
0.7
9.1
11.0
16.3
115
34
88
1.5
0.0
2018
25.1
27.1
30.6
233.3
7.0
20.0
40.4
33.1
24.7
2.6
4.3
0.7
10.8
11.2
18.0
107
33
87
1.6
0.0
2019
30.5
21.6
36.6
254.0
7.0
20.0
50.5
42.1
33.9
3.7
6.1
0.5
12.0
12.4
21.9
103
29
88
1.6
0.0
2020E
40.6
33.0
47.0
284.9
8.1
20.0
38.0
32.9
28.1
3.3
5.4
0.5
14.3
14.7
29.0
103
29
88
1.5
0.0
2021E
47.2
16.1
53.8
320.7
9.4
20.0
32.7
28.7
23.7
2.8
4.8
0.6
14.7
15.1
32.2
103
29
88
1.5
0.0
Cash Flow Statement
Y/E September
PBT before EO Items
Add : Depreciation
Interest
Less: Direct taxes paid
(Inc)/Dec in WC
CF from Operations
EO Income
CF from oper. Incl. EOitems
(Inc)/dec in FA
Free Cash Flow
(Pur)/Sale of Investments
CF from Investments
(Inc)/Dec in Networth
Inc/(Dec) in Debt
Less : Interest Paid
Dividend Paid
CF from Fin. Activity
Inc/Dec of Cash
Add: Beginning Bal.
Closing Balance
2015
9,136
2,156
1
3,102
3,246
11,436
5,798
17,235
-1,481
15,753
-1,682
-3,163
-38
0
1
4,285
-4,324
9,748
11,210
20,959
2016
9,493
2,264
2
3,148
-3,853
4,755
22,825
27,581
-2,214
25,366
0
-2,214
2,082
0
2
14,312
-12,232
13,134
20,959
35,094
2017
11,016
1,967
3
3,982
-3,200
5,801
5,205
11,006
-2,863
8,143
-0
-2,863
496
0
0
2,990
-2,495
5,648
35,094
40,713
2018
13,912
1,967
4
4,973
-10,676
230
0
230
-1,554
-1,324
0
-1,554
58
0
0
2,990
-2,932
-4,256
40,713
36,457
2019
16,416
2,173
114
-6,130
4,452
17,025
-1,338
15,687
-1,197
14,490
235
-962
0
0
108
3,005
-3,113
11,612
36,457
48,913
2020E
19,325
2,259
114
-4,864
-2,581
14,253
0
14,253
-1,000
13,253
0
-1,000
0
0
114
3,471
-3,585
9,668
48,913
58,581
(INR M)
2021E
22,435
2,368
114
-5,647
-3,574
15,696
0
15,696
-1,000
14,696
0
-1,000
0
0
114
4,029
-4,143
10,553
58,581
69,134
21 November 2019
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 MOSL, 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 MOSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOSL, 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 MOSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOSL has not received any compensation or other benefits from third party in connection with the research report
10 MOSL has not engaged in market making activity for the subject company
21 November 2019
7
 Motilal Oswal Financial Services
Siemens
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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.
21 November 2019
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