Accumulate The Anup Engineering; target of Rs 2894: Asit C Mehta

Asit C Mehta report on The Anup Engineering

The Anup Engineering Limited” (erstwhile subsidiary company of Arvind Limited) was originally incorporated in the year 1962. In the year 2017 Arvind Limited decided to demerge The Anup Engineering Limited as separate entity. The company got listed on BSE & NSE on 1 st March, 2019. It is an India-based company that is engaged in manufacturing and fabrication of process equipment. The Company's products include static process equipment, technology products, engineering services, dished ends and industrial centrifuges. Its static process equipment includes heat exchangers, reactors, pressure vessels, columns and towers, and custom fabrication. Its technology products include Helixchanger and EMBaffle Heat Exchanger. The Company offers a range of shell and tube heat exchangers for oil and gas, refinery, petrochemical, fertilizer, power, water and wastewater, and chemical industries. Its range of heat exchangers include evaporators, high-pressure feed water heaters, surface condensers, waste theat exchangers, multi-tube hairpin exchangers, bayonet heat exchangers, catalyst coolers, transfer line exchangers and others.

Outlook

Given the promising outlook, strong order book, and an impressive on-time delivery record of over 95%, makes solid reputation of the company among its user industries. Consistency in this well-adopted strategy make its growth aspirations realistic. We project a 30% CAGR growth for FY24- FY27E and recommend an ACCUMULATE position for medium to long-term investment on basis of PE multiple of 30x and an estimated EPS of Rs 96.7 for FY27E, the stock offers a favorable investment opportunity.

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