Fundamentals

SIEMENS 

Ticker : 500550
BUY: Rs 1055.70
Target: Rs 1180 

Siemens Limited is a holding company engaged in manufacturing of electric motors, generators, transformers and electricity distribution and control apparatus. During the quarter ended December 2018, the company’s standalone revenue grew by 15.5 per cent YoY to Rs 2807.1 crore. The EBITDA was up by 12.5 per cent YoY and the EBITDA margin stood at 11 per cent. PAT during the quarter increased by 19.7 per cent YoY to Rs 228 crore from Rs 190 crore. As per the company, its new orders of base business grew by 16 per cent, while the overall new orders grew by 4.1 per cent. The company’s digitisation initiatives led to the overall growth of the company during the quarter. Considering the robust financial performance and growing demand for the products, we recommend it as a BUY.

MANAPPURAM FINANCE 

Ticker : 531213
BUY: Rs 104.05
Target: Rs 117 

Manappuram Finance is a non-banking finance company engaged in offering gold loans, microfinance, housing loans and commercial or vehicle loans. During the quarter ended December 2018, the company’s total income grew 25 per cent YoY, led by 23.6 YoY growth in its net interest income. Its consolidated AUM grew by 21.4 per cent YoY during the quarter. The company’s non-gold portfolio is performing decently and it is one of the significant growth driver. The asset quality of gold loan segment is good and the company expects the segment to grow by 8-10 per cent in a year. During the quarter, the company was successful in curtailing overall costs leading to higher profitability. It also plans to double its portfolio of housing finance segment. Considering the overall growth across all loans segments, we recommend it as a BUY.