Prabhudas Lilladher has given Buy recommendation for Engineers India with a target price of Rs. 129 in its research report issued on Jun 09, 2021
Prabhudas Lilladher’s research report on Engineers India
Engineers India (EIL) reported healthy performance during 4Q, led by ramped up execution for its turnkey segment and robust operating performance. EBIT margins expanded by 274bps to 5.6% in Q4FY21, owing to strong execution and reversal of provisions. Despite pandemic, OI came in healthy at ~Rs7bn in 4Q resulting into management guidance of Rs15-16bn for FY21 being met. Order inflow mainly come from domestic consultancy segment (~93%). Management expects healthy ordering momentum as tender pipeline includes Petrochemcial expansion of BPCL and HMEL, MRPL refinery expansion, order from Rajasthan refinery, Kaveri basin (few package) and Bina refinery expansion to be awarded in FY22.
We maintain our ‘Buy’ rating on stock with revised TP of Rs129 (Rs115 earlier) valuing the company at 12x FY23 EPS estimate. TP is largely changed due to revision in earning and impact of EPS on account of share buyback.