Siemens Healthcare

Posted at September 14, 2009 written by Ayush

siemens (1)

I came across this very interesting stock idea and I think we all should dig into it more and accumulate on declines.

Background:

The company was earlier known as Bayer Diagnostics. Siemens group took over this company last year.

Positives:

  1. Tiny Equity capital of just 1.57 Cr hence at CMP of 1100 – Mcap of 165-170 Cr is not much considering it to be part of the huge Siemens group.
  2. The company is into healthcare sector which is bound to grow rapidly over next few years. Cos like Siemens are market leaders in this sector and can exploit the maximum potential.
  3. The turnover has already started increasing. Co has reported 75% growth till June 09 (first 9 months) and 92% growth in March Qtr (45.38 Cr vs 23.61 Cr)
  4. The profitability part is not clear due to several adjustments and may be balance sheet clean up after the takeover. But I expect the OPMs to be easily 20%+ if the Siemens group is bringing it’s expertise in this co. We should get a clearer picture in next qtr nos and annual report.

The opportunity I’m seeing is – For a group like Siemens, current size of operations & Mcap are peanuts. They can definitely scale-up big time here and create multibagger returns for shareholders.

Please dig in more and contribute with your industry knowledge on this company.

Similar Posts:

Company Data

If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.

  • amit
    intersted in your advisory services.what are the charges.plz email details at id.mobile no. 9810448818.
    regards amit
  • Ayush
    Dear Kaydaar,

    1. This blog is for the purpose of bringing to the notice, some good stock ideas and discussing them further. If you are looking for advisory service - you may consider our advisory services for which we take yearly charges. For more details write to ayushmit@gmail.com

    2. Thats upto you. You have to take an informed decision based on your understanding of the company and the opportunity.

    3. Yes.

    4. Not at all. Feel free to raise more queries.

    5. Couldn't get you
  • Kaydaar
    [1] That should be a good piece of intelligence. But as full time professional busy with own job, how will you keep me informed of further action tip if I buy this scrip?
    [2] In how soon I sh0uld buy this?
    [3] For log term?
    [4] Pardon for queries if U stalwarts find them funny.
    {5} What do I do of the website window u shown?
blog comments powered by Disqus