Engineering Marvels

When we talk about engineering marvels, one country which comes to our mind is Germany. Germans over a period of time have earned a reputation in giving the best of engineering resources to the world. So the stock which we are talking about today is one of the stocks which is German originated and having a strong foothold in our country-Siemens.

Siemens currently trades at a level of Rs 1080. Technically when we see the chart of this stock, it has given a bounce back from the support levels of 23rd March and 18th May 2020 which was around Rs 1000. The stock fell down due to Covid-19 but if we see the movement of this stock before the pandemic, it was a strong stock which was in a decent uptrend where it made a high around Rs 1670. So technically stock looks bullish because recovery has started in the market post the Covid-19 fall and technically it is well placed and bouncing from a strong support. Now when we see the stock fundamentally, it has been a virtually debt free stock since many years , particularly being absolute debt free in the years 2010, 2011, 2014, 2017, 2018, 2019.

Market capitalisation wise it is the biggest player in the manufacturing of engineering equipment in our country leaving behind the likes of Havells, etc. OPM of this stock has been maintained around 13% since last many years showing a steady foothold. A healthy dividend payout in the range of 25-30% has been maintained by the company. Majority of the shareholding is with the promoters since last many years (Promoter holding being 75%). Fiis and Diis contribute to around 14% of the holding leaving the rest 11% to public investors. Since the majority holding is with the Big players, the stock looks safe in their hands because a big player or a promoter sticks onto a stock only when they see great growth prospect. So all in all stock looks good with a positional view where if everything goes according to the developments in the stock, you can very soon see the stocks reaching the levels of at least Rs 1400-1500 in the coming few months.

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