Stock Review: Siemens

 

Siemens' order book of 15,132 crore gives revenue visibility of 18 months. The speed of executing projects has also increased as revenues grew by 24% in the nine-month period ended December 2010. However, its offer price seems to more than factor in the growth prospects of the company. Still the scrip has gained more than 17% since the announcement of open offer, which increases the risk that the stock might return to pre-announcement levels once the open offer is over. A similar thing had happened earlier in ABB's case. Investors can hence take up the offer and look for other opportunities in the market.