Accumulate ISGEC Heavy Engineering ; target of Rs 1170: Asit C Mehta

Asit C Mehta report on ISGEC Heavy Engineering

ISGEC Heavy Engineering Limited (ISGEC), was incorporated as a public company under the ISGEC Group in 1933, manufactures heavy engineering equipment and provides related EPC/turnkey services with an extensive global presence. The Company’s segments include manufacturing of machinery and equipment and engineering, procurement, and construction (EPC). The manufacturing of machinery and equipment segment is engaged in manufacture of process plant equipment’s, presses, castings, boiler tubes and panels and containers. The engineering, procurement and construction segment consists of projects and turnkey solutions for sugar plants, distilleries, power plants, boilers, air pollution control equipment’s, buildings, and factories. The Company manufactures process plant equipment, mechanical and hydraulic presses, steel and iron castings, boiler pressure parts, and built-to-print equipment.

Outlook

Hence, we recommend ISGEC Heavy Engineering Limited with a target price of Rs 1,170, based on FY26E EPS of Rs 50.04, and a forward PE valuation multiple of 23.4x. It looks like a value buy with growth potential for medium to long-term investment. Hence, we recommend an ACCUMULATE rating for the long term.