IDBI Capital's research report on Engineers India
As against Revenue/EBITDA/PAT expectations of Rs3.8 bn/Rs911 mn/Rs1.0bn, ENGR reported Rs3.8 bn/Rs817 mn/Rs814 mn. The pace of execution is yet to gather momentum. Also, the other income, which usually helps in stronger net profit, is down 16% YoY. The provision write back in LSTK has moderated to a large extent. In Q1FY18, ENGR secured Rs3.4bn in orders: (a) Rs991mn in consultancy (PMC); and (b) Rs2.44bn in turnkey (LSTK). We anticipate a 44% (earlier 48%) CAGR in EBITDA between FY17-FY19E. With big-ticket catalysts in place, we maintain ACCUMULATE.
Outlook
We think company deserves higher multiple. With a target price of Rs165, from earlier Rs170, (~17x FY19E EPS), we maintain ACCUMULATE.
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