Hold The Anup Engineering: target of Rs 680: ICICI Direct

ICICI Direct recommended hold rating on The Anup Engineering with a target price of Rs 680 in its research report dated February 05, 2021.

Broker Research

February 10, 2021 / 18:52 IST

26 Aug, 2025 12:21

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ICICI Direct's research report on The Anup Engineering

Anup’s Q3FY21 performance was subpar led by lower execution on account of night curfew in Ahmedabad post Diwali (loss of 20 days). Further, dispatch of heat-exchangers remained an issue during the curfew days as the company faced logistic challenges. Bottomline was cushioned, led by reversal of taxation as the company adopted a lower tax rate under Sec-115- BAA. Revenue for the quarter came in at Rs 29 crore, down 62% YoY, 66% QoQ. Execution was impacted on account of night curfew in Ahmedabad. On the positive side, the company has finished goods stock of Rs 28 crore value as on December end. EBIDTA came in at Rs 6.8 crore, down 68% YoY entailing a margin of 23% vs 27% YoY. Employee cost increased 26% YoY to Rs 4.6 crore while other expenses declined 4% YoY to Rs 14.2 crore. Employee cost increased 26% YoY to Rs 4.6 crore while other expenses declined 4% YoY to Rs 14.2 crore. PAT declined 34% YoY to Rs 9.1 crore cushioned by negative tax charge of Rs 4.1 crore.

Outlook

We value Anup at 11x FY23E EPS. We revise rating from BUY to HOLD with a target price of Rs 680 (Rs 750 earlier).

For all recommendations report, click here