Kotak Securities is bullish on Engineers India has recommended buy rating on the stock with a target price of Rs 182 in its research report dated October 10, 2017.
Kotak Securities's research report on Engineers India
EIL management expects pickup in domestic order flows in 2HFY18-19 mainly driven by 1/ pick up in brownfield expansion of various small (sub 3mmtpa) refineries in India, 2/ integration of refineries with petrochemical units 3) awarding of Greenfield orders mainly Barmer Rajasthan and West Coast refinery and 4) other initiatives such as pipeline expansion by Gail and investment in strategic storage facilities by OMCs.
We reiterate our long term positive view on EIL; expect significant improvement in FY19 earnings driven by uptick in execution and margin expansion on back of operating leverage. We value EIL at PER 25x FY19 core earnings and maintain BUY rating with unchanged target price of Rs 182.
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