The Hindu Business Line : Siemens scrip attracts buyers on Budget sop buzz

THE Siemens stock today moved up by over three per cent on strong investment buying. The delivery figures were close to cent per cent on major bourses. On NSE, there was a block deal of 30,400 shares.

Siemens-led consortium including L&T and Unique Zurich Airport is constructing Rs 1,200 crore Bangalore airport. The Delhi and Mumbai airport modernising projects are set to kick off soon with 49 per cent FDI cap.

According to dealers, some investors have taken long-term call in the counter in view of expectation the Budget may announce sops or incentives for the health care and power sectors and also spur infrastructure growth -

both of which are likely to benefit Siemens.

The corporate sector is also expected to take a big leap in the coming years in automation, which would improve the prospects for Siemens.

In the past one year, Siemens has completed a three-step business restructuring and consolidation exercise. It has also upped its interim dividend in the current fiscal (October - September) to 40 per cent from 35 per cent last fiscal.

In the first two quarters of this fiscal, it has bagged two orders from Railways and DLW worth Rs 713 crore.

According to Mr Devarsh Vakil of Anagram Stockbroking, the unexecuted order value as on March 2004 end stood at Rs 1,962.4 crore

Analysts, who track this company, have said that in little over past one year period the Siemens stock had nearly four-fold run-up. Though, it has come off its peak of Rs 1,130, the stock remains in the investors reckoning in terms of its growth potential in the company's diversified business interests.

At today closing price of Rs 881, the stock traded at 20 times its expected 2003-04 earnings per share of Rs 42.