Buy Engineers India; target of Rs 160: ICICI Direct

ICICI Direct's research report on Engineers India

Engineers India (EIL) reported weak Q4FY18 numbers Revenues increased 15% YoY to | 509.7 crore, below our estimate of | 521.7 crore. This was primarily on account of lower order booking in the consultancy segment. Consultancy & turnkey segments contributed 66.2% and 33.8% to the topline, respectively

Outlook

EBITDA and PAT CAGR of 16.2%, 6.7% and 6%, respectively, in FY18-20E. We value EIL at 24x P/E (25x earlier) on FY20E EPS of | 6.7 to arrive at a target price of | 160 per share (| 195 earlier). We maintain our BUY recommendation on the company.