Buy Engineers India; target of Rs 182: ICICI Direct
ICICI Direct is bullish on Engineers India has recommended buy rating on the stock with a target price of Rs 182 in its research report dated March 16, 2017.
ICICI Direct 's report on Engineers India
Engineers India (EIL), a Navratna public sector enterprise, is one of the oldest companies in the Indian public sector. Over the years, the company has emerged as a market leader in the Indian hydrocarbons segment with expertise in design, engineering and project implementation. EIL has consistently grown its topline & bottomline over the last 10 years at a CAGR of 11.3% and 6.4%, respectively, in FY07-16.
We believe with higher order inflows (9MFY17 order inflow at | 5024 crore), strong balance sheet and recovering margins, EIL will deliver accelerated sales and PAT CAGR of 18% and 29.2%, respectively, in FY16-19E. Accordingly, we value EIL at Rs 182 i.e. 22x P/E on FY19E EPS of Rs 8.3 and initiate coverage with a BUY recommendation.
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