Electricity rates to fall next week

Electricity rates to fall next week

Israel’s Public Utilities Authority (Electricity) announced today that electricity rates will fall by 2.4% next week. The price cut for households will fall by 0.4% more than the original decision announced at the beginning of March, following an appeal by the Manufacturers Association due to the sharp fall in coal prices on world markets.

Unusually, this is the third electricity rate revision in about three months, when normally the electricity price is updated only once a year. The reduction is in addition to the 1.5% cut announced by the Public Utilities Authority (Electricity) last month, which was was due to Minister of Finance Bezalel Smotrich’s decision to extend the excise duty exemption on coal.

However, the latest cuts have yet to offset the sharp 8.2% rate hike in electricity rates for household consumers, which came into effect at the beginning of 2023. Prime Minister Benjamin Netanyahu and Finance Minister Smotrich promised to cancel most of the price increases but in the meantime, most of the price increases will still remain in effect.

The Public Utilities Authority (Electricity) said in its announcement today, “The macroeconomic environment is not stable. For example, the interest rate, the price index, and the exchange rate, the rise of which and the risks arising from it partially offset the decline in international coal prices.”

The Public Utilities Authority (Electricity) also noted that there has been significant progress in the process of selling the Israel Electric Corp.’s (IEC) Eshkol power production plant, while at the same time there was the crane collapse at the coal pier of IEC’s Rotenberg site. The Public Utilities Authority (Electricity) specifies in its decision that it will examine the impact of these two events on the electricity sector and the meaning for electricity consumers as a whole, taking into account all the consequences.

Published by Globes, Israel business news – en.globes.co.il – on March 26, 2023.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.

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Apartments sold and rented

Apartments sold and rented

Second-hand apartments sold
Tel Aviv and central region
Tel Aviv: A 67 square meter, three-room, fourth floor apartment on Mifalei Egoz Street in the Evnei Chen neighborhood was sold for NIS 2.14 million (RE/MAX – Ocean).

Yavne: A 131 square meter, five-room, first floor garden apartment with a 150 square meter garden, elevator and parking on Hasira Street was sold for NIS 3.78 million. A 122 square meter, five-room, eighth floor apartment with a 25 square meter balcony, elevator and parking on Hanamal Street was sold for NIS 3.3 million (RE/MAX – Time).

Rosh Ha’ayin: A 135 square meter, five-room, third floor apartment with an 11 square meter balcony, elevator and parking on Nelly Zachs Street was sold for NIS 2.87 million. A 160 square meter, five-room, 15th floor penthouse apartment with an elevator and parking on Shaika Ophir Street was sold for NIS 4.25 million. A 104 square meter, four-room, ninth floor apartment with a 12 square meter sun balcony, elevator and parking on Ofa Haza Street was sold for NIS 4.25 million (RE/MAX – Trend).

Haifa and the north
Haifa: A 115 square meter, four-room, second floor apartment on Einstein Street in Ahuza was sold for NIS 1.57 million. A 85 square meter, three-room, third floor apartment on Ahad Ha’am Street in the Herzliya neighborhood was sold for NIS 720,000. A 145 square meter, five-room, third floor apartment with an elevator and parking on Gat Street in the Ahuza neighborhood was sold for NIS 3.56 million (RE/MAX – Grand).

Afula: A 140 square meter, five-room, semi-detached house with a 197 square meter garden and parking on Oren Street was sold for NIS 2.84 million. A 150 square meter, six-room, seventh floor mini-penthouse apartment with a 140 square meter balcony, elevator and parking on Katzir Street was sold for NIS 2.03 million (RE/MAX-770).

Nahariya: A 72 square meter, three-room, second floor apartment with parking on Hehalutz Street was sold for NIS 800,000 (RE/MAX – Halutzim).

Beersheva and the south
Kiryat Malakhi: A 115 square meter, five-room, third floor apartment on Nahalat Har Habad Street was sold for NIS 1.36 million (RE/MAX – Advance).

Tel Aviv and central region
Bat Yam: A 280-sq.m. six-room, 34th floor apartment with two balconies of 40 square meters each, elevator and two parking spaces on Arik Einstein Street was leased for NIS 20,000 per month (Keller Williams).

Published by Globes, Israel business news – en.globes.co.il – on March 26, 2023.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.

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Large stocks pressure Tel Aviv home prices

Large stocks pressure Tel Aviv home prices

Has the supply of homes in Tel Aviv and its neighboring cities become a surplus? Figures released last week by the Central Bureau of Statistics show that the extensive construction versus the sharp falls in home purchases in the Tel Aviv district and particularly in Tel Aviv itself has led to a situation in which 30% of the supply of new homes in the country is in this district. This may have led to the decline in the home price index in the Tel Aviv district.

According to the Central Bureau of Statistics data, in 2022 purchases of new homes declined by 42% in the Tel Aviv district and by 52% in the city itself. This compares with a countrywide decline of 30%. Altogether, 7,462 new homes were bought in the district, 1,914 in the city of Tel Aviv.

The figures for building starts are much higher. Construction was started on 9,230 new homes in the Tel Aviv district in 2022, about half of them, 4,659, in Tel Aviv itself. These numbers are lower than the numbers for 2021, but the decline (20% in the district and 5% in the city) was less steep than the decline in purchases. Hence the supply of new homes held by developers in Tel Aviv and surrounding cities has grown substantially.

Last week, for the first time, the Central Bureau of Statistics provided a breakdown by district of the stock of unsold homes held by developers. It emerges that, at the end of January, 28% of the total stock of unsold homes was in Tel Aviv. This amounts to some 15,000 homes, which, given the rate of sales of new homes in the past year, is sufficient for two years. The central district had nearly 13,000 unsold new homes.

These two districts, which together have over half the supply of new homes, are also the most sought after and most expensive areas for property buyers. The stock of homes that has accumulated is a result of the burgeoning construction in 2020-2021, but since then buyers have disappeared, deterred by rising interest rates and uncertainty in the economy.

The developers are obliged to complete a large part of these projects because of presales, but if, when they began the planning and permit process two to three years ago, they were sure that sales would be rapid, they have now come up against a reality in which sales are stuttering and stocks are growing.

The data released by the Central Bureau of Statistics are the first of their kind, and there are no comparable data for previous years, but it is clear that the numbers are very high. When we examined the gaps between building starts and purchase in the city of Tel Aviv, we found that 2,700 more homes were started in the city last year than were bought.

This does not mean an addition of 2,700 unsold homes to the stock, since a substantial proportion of the construction in Tel Aviv is in urban renewal projects, in which some of the new apartments are allocated to those who previously owned apartments on the site. Moreover, some of the apartments on which construction began last year were sold beforehand. But over a period of several years the gap between starts and sales has grown, and in 2022 sales simply plummeted in a way that could not have been predicted.

As has been mentioned in “Globes” many times, the dwindling of new home sales in Tel Aviv is to a large extent attributable to the fact that workers in the technology sector, which boomed in 2020-2021, have been laid off in large numbers in the past year. Realtors reported that technology workers accounted for a large part of the market in Tel Aviv, especially in TAMA 38 urban renewal projects in the Rova 3 and Rova 4 areas in the center and inner north of the city.

Tel Aviv depresses the index

The chief economist at the Ministry of Finance recently released a survey of the luxury housing market in 2022 that shows that this market too, of homes costing over NIS 10 million, has been hard hit in Tel Aviv. 183 transaction took place in the luxury end of the market last year, which compares with 352 transactions in 2021.

The decline in sales is starting to find expression in prices. Until recently, Tel Aviv pulled the home price index upwards, but in the past few months it has dragged it down. In November-December, the index fell 0.8% in Tel Aviv, but rose 0.3% nationwide. (Only the Haifa district showed a similar trend, but the decline there was just 0.1%).

By way of reservation, it must be said that the decline is not yet sufficiently statistically significant, but the very fact that the Tel Aviv district behaved differently from the other districts makes it plausible that there is a connection here, and that the large stock of homes that the developers have accumulated is putting pressure on them to come out with special offers in order to speed up sales.

Published by Globes, Israel business news – en.globes.co.il – on March 26, 2023.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.

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Defense Minister Gallant calls for halt to judicial reform

Defense Minister Gallant calls for halt to judicial reform

This evening, Minister of Defense Yoav Gallant called for a halt to the legislation of the reform of the judicial system. This is after, on Thursday, Gallant was about to make an announcement but withdrew after a meeting with Prime Minister Benjamin Netanyahu.

“The mission of my life is the security of Israel. I have risked my life dozens of time, and this time too I am prepared to take a risk and pay a price. The threats are great – Iran is close to military nuclear capability, the northern front is unquiet, Palestinian terror is growing,” Gallant said. “In the past few weeks something has happened. I am concerned at what I hear in the field. I have never encountered such powerful anger and pain as I see now. The IDF has been damaged. The split in society has penetrated the IDF and this is a clear, immediate and concrete danger to the security of the state. I will not lend a hand to this.” Gallant was referring to the phenomenon of reserve army personnel refusing to report for duty because of the legislation.

“I belong to Likud, I say this evening, change is required in the legal system, but substantial changes of national significance should be made through dialogue,” Gallant said. “The victory of one side is a defeat for the country. We must lead a shared national process that will preserve the IDF’s strength. I have presented the security picture, and said that at this time the process should be halted in order to sit and talk.

“For the sake of the security of Israel, the legislative process must be stopped and the people of Israel must be allowed to celebrate Passover and Independence Day together and mourn together on Memorial Day. These are sacred days. The demonstrations must be stopped and a hand extended to discourse, and the refusal to serve must be brought to an end. Our duty is to return to dialogue; we are brothers.”

Gallant was joined in his call for dialogue by Minister of Agriculture Avi Dichter and Knesset Foreign Affairs and Defense Committee Yuli Edelstein. “A majority of the nation wants change in the legal system and understands the need, but this must be done with patience, dialogue and broad discourse to reach broad consensus,” Edelstein said. Others in the Likud party sharply condemned Gallant. Minister of Communications Shlomo Karhi said, “The State of Israel is at a historic crossroads between democracy and dictatorship and its minister of defense chooses dictatorship and gives encouragement to refusal to serve and a military coup. The decision of the people is not to be annulled for a caress from the media and the elite. That is not democratic.”

Leader of the Opposition Yair Lapid said, “Minister of Defense Yoav Gallant has taken a courageous and vital step for the security of the State of Israel. The coup is a sever blow to national security, and it is his task and his responsibility to stop the dangerous deterioration. This is a moment of truth. I call on the government: stop everything, don’t pass the change in the judicial selection committee and the Deri law, and come to hold dialogue in the President’s Residence.”

The Business Forum of leaders of Israel’s largest companies and the Movement for Quality Government in Israel also issued statements in support of Gallant.

The leadership of the protest movement said in a statement, “We are not stupid, we have not come together for the sake of a temporary fudging and we will not fall asleep on watch. We demand complete withdrawal of the legislation. Until then, the campaign will only become stronger.”

Prime Minister Benjamin Netanyahu is on an official visit to London and has yet to react publicly to Gallant’s announcement.

The weekly demonstrations against the judicial reform continued this evening, with the numbers the highest since they began. The protest leadership claimed that 300,000 people took part in the rally in Tel Aviv. Tens of thousands also demonstrated in Jerusalem, Haifa, Hod Hasharon, Yavneh, Givatayim, Rishon LeZion and other cities. After the rally, protesters in Tel Aviv blocked the Ayalon Highway. Earlier today, hundreds of people demonstrated against the government outside Yoav Gallant’s home.

Published by Globes, Israel business news – en.globes.co.il – on March 25, 2023.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.

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Mutual fund distributors Vs Registered Investment Advisors: How should you choose?

Mutual fund distributors Vs Registered Investment Advisors: How should you choose?

India’s retail equity investment culture is maturing, or so it would seem. Consider these facts: there are over 11.2 crore demat accounts, over ₹40 lakh crore in assets under management in mutual funds and a monthly SIP (systematic investment plan) book of nearly ₹13,700 crore. Data here is from depositories NSDL and CDSL, and industry body AMFI.

Yet, scratch the surface and there are multiple points of concern. Nithin Kamath of Zerodha was on record saying the number of active demat accounts with more than ₹10,000 was estimated to be just three crore. AMFI’s data shows that the average ticket size of a retail investor’s mutual fund account was ₹70,755. Only 44.4 per cent of the equity assets remain invested for more than two years. And the SIP stoppage ratio (number of new SIPs opened to the ones stopped) touched a new high of 0.68 in February 2023, up from the usual 0.48-0.5 levels seen earlier. You would expect more SIPs to be started to take advantage of the volatile markets in the last 18 months; however, the opposite has happened.

But you hear of more people dabbling in futures and options, and losing their money even as the market regulator put out a report stating that most F&O traders made losses.

It would be easy to blame all this on weak market conditions or just reckless individual investing or unaccountable social media FinFluencers. But much of this has to do with the kind of decision-making process (or its absence) that retail investors follow. It has to do with the lack of handholding and the right kind of advice being taken for investing in suitable avenues. Chasing fads or ‘flavour of the season’ investments without guidance, and on a whim, leaves most investors disappointed.

Therefore, most investors would do well with some level of handholding.

That is the aspect that we would like to emphasise here. Mutual Fund Distributors (MFDs) and Registered Investment Advisors (RIAs) are the most sought-after ones for financial advice, though the former have a more restricted role.

How do you make the choice between an MFD and an RIA? We seek to answer this in two parts. First, we describe what each of these entities can and cannot do. Then, we look at the factors that must guide you towards making an informed decision while choosing between the two.

What MFDs and RIAs can offer

Distributors must pass the NISM certification relating to mutual fund distribution and register themselves with AMFI.

A distributor can (or rather must) assess the risk appetite and suitability of schemes before recommending them to her clients. She is also allowed to give you incidental advice – which is not very rigidly or clearly defined. Therefore, a distributor can give an indication on asset allocation and, based on risk assessment, suggest funds. She cannot provide comprehensive financial or investment or tax planning services,

An MFD gets 0.1-2 per cent in commission from the fund in which her clients invest. The investor doesn’t pay anything to the distributor. Onboarding of clients – filling up forms, completing KYC norms and submitting proofs – is done online as most MFDs are empanelled with large corporate distributors.

For an investor taking the MFD route, the return that she makes from the fund choice is the final return, as the NAV includes commission payments.

An RIA is more involved in the sense there is a fiduciary duty on behalf the client. In this case, the RIA needs to pass two levels of NISM investment adviser certifications. Further, all persons practising with her (representatives and partners) must satisfy the qualification requirements.

The RIA can give complete financial, investment and tax advice to clients, but cannot claim commission from any products being recommended. Detailed records in terms of risk assessments, product recommendations and processes are needed.

For her services, an RIA charges a fee that can be fixed or a percentage of assets under management/advice. Fee is charged based on time spent, complexity of the advice, amount invested and so on.

SEBI has capped the percentage of assets charges at 2.5 per cent a year, though most charge much less than that. For fixed fee, the limit is ₹1.25 lakh per year, per person.

An individual RIA can service up to 150 clients and has a minimum net worth criteria of ₹5 lakh. Beyond the 150-client limit, the individual RIA must either stop taking fresh clients or must move to a corporate RIA licence afresh with ₹50 lakh net worth requirement.

A corporate RIA can give detailed financial advice and distribute products, but not both to the same client.

From an investor’s perspective, the returns must be calculated after accounting for the fee paid to the RIA, which may not be simple. Unlike in the case of the MFD, product returns aren’t the same as final returns with an RIA.

Making the choice

Deciding between an MFD or RIA may not be as straightforward as you imagine. The choice would be clear if it is based on a few factors that help you crystallise the kind of assistance you require in dealing with your finances.

Ticket size: Let’s say you started off on your career recently or are in the early stages of your work life with a relatively modest sum to invest (₹5,000-₹10,000) every month. You just want 2-3 mutual funds to launch your investment journey, perhaps an ELSS to begin with.

In such a case, a mutual fund distributor would be better, for you just need simple advice on investing in a few funds. Besides, for someone new to investing, the documentation can be overwhelming at times and a distributor would do the needful for you comfortably. Your distributor may also be an insurance agent and could help you additionally with term and health covers right at the start.

Going to an RIA may be expensive early on. If a client can invest, say, ₹10,000, every month and the RIA charges a flat ₹10,000 as fee, you would end up paying 8.33 per cent as fees for one year (₹10,000/₹1,20,000).

Again, if you are just looking for a couple of funds for long-term investments to make the best use of your yearly bonus, a distributor may handhold you better.

But if you can invest, say, ₹50,000 every month, and pay the same ₹10,000 as RIA fee, it would amount to only 1.67 per cent (₹10,000/₹600,000) expense ratio a year.

Life stage, complexity: Over a period of time, in your mid-career phase, your earnings are likely to have improved. You may have a working spouse, perhaps children, and would be looking at saving for various goals — children’s education, marriage, house purchase, retirement, and so on.

Given that two incomes have to be channelised for suitable investments and optimised for taxes across multiple products other than just mutual funds, you may need comprehensive plans and periodic reviews. Besides, there may be loan EMIs to deal with.

In such cases, an RIA may be better suited for a more systematic approach to achieving life goals.

A very seasoned distributor with an excellent track record — and who perhaps has guided you well since you started investing in your younger days — may also be considered. But with a multi-product portfolio that is large, you may be better off with an RIA.

Another scenario could be that of a DIY investor who has invested in all kinds of products — mutual funds, direct stocks, bonds, insurance policies (ULIPs) and even cryptocurrency.

Such an investor may have parked money in various avenues or just a few and yet accumulated a large corpus. But the portfolio may be quite unwieldy and without any specific focus. The investor herself may have a decent understanding of investments and markets (may be not at expert level). But she may have little idea of asset allocation, financial planning and so on, but importantly would have the discipline to invest regularly, though not in the right instruments. Such an investor would be better off with RIAs, so that her portfolio is mended suitably — and with a few sittings over a few years, she may continue to be on her own, but with better focus.

Execution and operational aspects

One key point to note about going to RIAs is that not all of them provide the execution facility as well. So, from which portals to invest, say, direct plans of mutual funds, to how to go about the paperwork, etc., may seem daunting to many, especially those who are not tech savvy. RIAs, who do offer the onboarding facility as well, may charge more as fees.

Those with large, complex and multi-product portfolios — and looking for comprehensive plans — must opt for the RIA route. If investors are tech-savvy and can take care of the operational and execution part as well, it would be that much easier. But if they aren’t and don’t mind paying a bit more, that would also make the case for RIAs stronger.

If your RIA offers just advisory and no execution facilities, and you yourself are in the dark about operationalising the advice, you may either have to change your RIA or become savvier about tech and paperwork.

Those taking the MFD route generally do not have to worry about the execution part, as the onboarding for most is online. Even if some physical running around is required, most MFDs do that for you. Besides, the slightly more informal set-up with an MFD means that your friendly distributor would constantly keep you informed on regulatory changes – 2-factor authentication for SIPs, PAN-Aadhaar linkage, compulsory nomination or opting out are some recent examples.

A note about fee and investment advice

Most investors require guidance – some more and others less, may be. Obsessing over fee paid or distribution commission isn’t always good. As an investor seeking advice, your priority must be to beat inflation convincingly, reach all your life goals comfortably and retire peacefully – in other words, attain financial freedom. Whoever gets you there is suitable advisor for you.

Handholding an investor and providing suitable advice through tough market phases – 2008, 2013, early 2020, late 2021 to mid-2022, for example – apart from helping them manoeuvre geopolitical tensions, central bank actions and regulatory diktats, without taking any hasty decisions, is critical.

Social media handles, blogs and news channels can highlight many avenues – even genuine at times, though we aren’t sure about any vested interest or conflict of interest involved. But what is suitable for your goals and risk appetite is another ball game altogether.

Therefore, there is a need for genuine advice. And there are no free lunches available.

Whether it is distribution commission or investment advisor fee based on a percentage of AUM or AUA, they keep recurring. With a fixed fee RIA, too, you need to pay for every annual review and calculate your returns post the payment.

There may be times when even the supposedly objective RIAs may be hesitant on certain actions. Let’s say you have a home loan running and, given the current high interest, wish to prepay the loan with the still hefty gains that you are sitting on from your stocks or mutual funds with the 2020-21 rally. If you are on a percentage of assets fee mode with your RIA, will she readily agree to liquidate some units of mutual funds if it means lower share of revenues for her? The case is even more pronounced with distributors.

But that is a problem with finding the right advisor, which is another issue altogether. Here is an article that could help.

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Mutual fund distributors Vs Registered Investment Advisors: How should you choose?

Siemens Ltd: Why investors can book profits in this stock

The Indian Capital goods sector has been in the spotlight in recent times on account of higher capex outlay by government, companies’ focus on localisation, private capex revival and strong order inflows. BSE Capital Goods Index has grown more than threefold since its April 2020 lows while it has surged about 26 per cent in the last one year. Siemens Ltd seems to be one of the key beneficiaries of the theme as its stock has shown strong performance by delivering returns of about 45 per cent in the last one year and is currently trading near all-time-high levels.

Siemens Ltd has been experiencing tailwinds such as strong order inflows and backlog and double-digit revenue growth but its pricey valuation calls for caution. The stock is trading at a one-year forward P/E of about 61.2 times (Bloomberg estimates), which is 32 per cent premium to its historical five-year average P/E.

In the last five years i.e. FY2018-2022, the company grew its earnings by about 38 per cent in absolute terms while the stock has shot up by nearly 200 per cent. Hence the upcoming growth prospects already seem factored in the stock.

Therefore it provides its investors very little margin for safety, which makes a case for booking profits in the stock.

The fundamentals of the company remain good. This is a valuation-based call.


Siemens is an Indian listed subsidiary of MNC Siemens AG, which holds 75 per cent stake in the company. The company reports its financials on a October-September basis in line with its German parent. Its business comprises mainly four segments – energy (33 per cent), smart infrastructure (36 per cent), mobility (9 per cent) and digital industries (22 per cent).

Under the energy segment, Siemens provides products, solutions, and services across the energy value chain of oil and gas production, power generation and transmission. Here it caters to customer base including Oil and Gas companies, IPPs, utilities, transmission system operators and mining and chemical companies by providing them solutions such as decarbonisation and grid stabilisation, among others. Smart Infrastructure (SI) division’s portfolio comprises grid control & automation; low and medium voltage power distribution, switching and control; building automation, fire safety and security, HVAC control and energy efficiency solutions.

Digital Industries (DI) segment provides technologies for automation and digitalisation, for process and discrete industries. Here its portfolio comprises mainly software, drive and automation technology for industrial segment. Mobility segment offers hardware and software solutions for passenger and freight transportation. This includes rail vehicles, rail automation systems, rail electrification and IT solutions.

Government projects comprise 15-20 per cent of the company’s business while the export portion hovers at around 15 per cent.  


As on September 30, 2022, the company has an all-time-high order backlog of about ₹17,180 crore. During FY22, it saw an increase in order inflows by about 43.1 per cent y-o-y to ₹19,420 crore. The energy segment contributes to about a third of the total order inflows, followed by SI, which comprises 27 per cent of the same while DI and Mobility contribute about 24 per cent and 17 per cent. In recent times, Mobility space has been in focus as it saw a huge increase of 136 per cent in order inflows y-o-y, mainly driven by a large order worth ₹900 crore, to develop Pune metro corridor.

Further in January 2023, the mobility segment received a huge order worth ₹26,000 crore from Indian Railways(IR) to design, manufacture, commission and test 1,200 locomotives of 9,000 HP. Deliveries are planned over an 11-year period including 35 years of operations and maintenance (O&M) and hence its immediate impact might not be seen on the company’s financials but it provides revenue visibility. Locomotives will be assembled in the IR factory in Dahod, Gujarat, and O&M will be performed in four railway depots at IR’s other facilities. The exact impact of this will be more quantifiable when management gives the next update during March quarter results.


During FY2022, the company reported about 22 per cent increase in revenue to ₹16,137.8 crore. It clocked EBITDA margins of 10.9 per cent i.e. 20 bps down y-o-y. However, adjusting for forex and commodity losses, the same is 12.4 per cent against 11.3 per cent y-o-y. The overall increase in margins is mainly due to better price extraction, which was tempered by higher input and logistics costs faced by certain segments.

In the last five years (FY2018-22), the firm has been able to grow its top line at a CAGR of about 6.4 per cent while maintaining EBITDA margins in the 10-13 per cent range.

During December ending quarter (Q1 FY23), the company witnessed a growth of about 17 per cent in its revenues and had margin expansion to 15 per cent, from 10 per cent levels, on account of better price extraction, higher volumes and positive forex and commodity effects.

Siemens has a robust balance sheet with net cash to the tune of around ₹5,500 crore. It has been able to generate positive cash flow from operations and free cash flow on a consistent basis. While fundamentals are decent, the prospects appear fully priced making the risk-reward unfavourable at current levels.        

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