Buy Engineers India; target of Rs 386: Firstcall Research

10975 Investors following EngineersInd. Share this News with them.

0

Like this story, share it with millions of investors on M3

Buy Engineers India; target of Rs 386: Firstcall Research

Firstcall Research is bullish on Engineers India and has recommended buy rating on the stock with a target of Rs 386 in its December 9, 2010 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS IRB Infrastructure an outperformer: LKP Shares Buy Federal Bank; target of Rs 523: Firstcall Research Buy Unitech; target of Rs 58.5: IIFL ALSO READ See previous views by Firstcall Research See what other Experts & Brokerages are saying about EngineersInd See messages about EngineersInd EngineersInd BSE | NSE 01/06/12 Are Mutual Funds betting on EngineersInd?

Firstcall Research is bullish on Engineers India and has recommended buy rating on the stock with a target of Rs 386 in its December 9, 2010 research report.

"Engineers India provides engineering and related technical services for petroleum refineries and other industrial projects primarily in India. The company has broadened its activities in other areas such as pipelines, petrochemicals, oil and gas processing, offshore structures and platforms, fertilizers, metallurgy and power. EIL has set up 50:50 joint venture companies with Tata Projects viz., TEIL Projects for undertaking EPC projects for hydrocarbon, power and other sectors has already been incorporated. It received "Certificate of Recognition" from Hindalco as mark of recognition on achieving a landmark of 1.16 million accident-free man-hours at Muri Alumina Brownfield Expansion Project. The company's net sales and net profit are expected to grow at a CAGR of 25% and 18% over FY09 to FY12E."

"At the market price of Rs 327.25, the stock is trading at 22.41 x and 19.32 x for FY11E and FY12E respectively. On the basis of EV/EBDITA, the stock trades at 14.39 x for FY11E and 15.52 x for FY12E. Price to book value of the company is expected to be at 6.41 x for FY11E and 4.82 x for FY12E respectively. EPS of the company is expected to be at Rs 14.60 and Rs 16.94 for the earnings of FY11E and FY12E respectively. The company's net sales and net profit are expected to grow at a CAGR of 25% and 18% over FY09 to FY12E. We recommend 'BUY' in this particular scrip with a target price of Rs 386 for Medium to Long term investment," says Firstcall Research Report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management.Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click on the attachment