the shafts see Chapter Cooling options see B3-DV17A Bevel-helical gearboxes B3

Flender/Flender Gear Units/Bevel-helical gearboxes B3

revenue. Large non -wind mechanical drives and motors will continue to be part of SIL POC business. Sale of less profitable business augurs well for SIL. Industry outlook: auto sector isnt likely to see good offtake in the near term from fresh investments perspective. Verticals like pharma, & and & saw good uptick. Water/irrigation, metros/railways, warehousing, electronics, etc . are some other sectors SIL will focus on. Metals and chemicals sectors are expected to commit capex in near term. Waste heat recovery projects from cement & industrial cogeneration plants have also seen uptick. Utilities and hospitality continue to defer capex. While short cycle and services/digitization businesses continue to do well, large project orders will be muted due to lower capacity utilization. Financial summary (Rs mn, Sep YE) 4Q FY2 4Q FY1 YoY (%) 3Q FY2 QoQ (%) FY2 FY2E FY2E FY2E Net Revenues 3,1 3,7 (9. 1,0 1.5 9,6 1,2,8 1,4,7 1,6,5 EBITDA 4,5 4,2 5.7 ( (5,4. 9,9 1,0 1,4 2,0 APAT 3,3 3,4 (4. 1 3,1.0 7,5 1,9 1,4 1,3 Diluted EPS (Rs) 9.4 9.8 (4. 0.3 3,1.0 2.3 3.7 3.8 4.1 / () 7.2 4.3 4.0 3.1 EV / EBITDA () 4.8 3.9 2.6 2.9 RoE (%) 8.2 1.1 1.6 1.1 Source: Company, HSIE Research REDUCE CMP (as on 2 Nov Rs 1, 5 Target Price Rs 1,3 NIFTY 1,9 KEY CHANGES OLD NEW Rating REDUCE REDUCE Price Target Rs 1,1 Rs 1,3 EPS change % FY2E FY2E FY2E 1.7 1.8 1.6 KEY STOCK DATA Bloomberg code SIEM IN No. of Shares (mn) 3 MCap (Rs bn) / ($ mn) 5/7,2 6m avg traded value (Rs mn) 2,3 5 Week high / low Rs1,6/9 STOCK PERFORMANCE (%) 3M 6M 1M Absolute (%) 2.6 4.6 2.7 Relative (%) 1.7 8.9 (5.0) SHAREHOLDING PATTERN (%) Jun-2 Sep-2 Promoters 7.0 7.0 FIs & Local MFs 1.1 1.4 FPIs 4.1 4.0 Public & Others 1.7 1.4 Pledged Shares 0.0 0.0 Source : BSE Parikshit Kandpal, CFA parikshitd.kandpal Siemens Flender hdfcsec HB series gearbox +9