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Last Updated : Jun 29, 2020 06:38 AM IST | Source: Moneycontrol.com

Buy Engineers India; target of Rs 92: ICICI Direct

ICICI Direct is bullish on Engineers India recommended buy rating on the stock with a target price of Rs 92 in its research report dated June 27, 2020.

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ICICI Direct's research report on Engineers India


Engineers India (EIL) reported overall decent set of Q4FY20 numbers. Standalone revenues came in at Rs 853.8 crore with strong growth of 39.4% YoY. Consultancy and turnkey (LSTK) segments contributed 47%, 53%, respectively. While for FY20 revenue grew 31% to Rs 3203.1 crore YoY with 49% contribution from consultancy and 51% from turnkey segment. Absolute EBITDA came in at Rs 111 crore, up 19% YoY while overall EBITDA margin came in at 13%, down 220 bps YoY mainly due to a change in the business mix. Consultancy and turnkey segments reported EBIT margins of 34.2% (vs. 28.7% in Q4FY19) and 2.9% (vs. 6.3% in Q4FY19), respectively. EIL reported PAT at Rs 116.5 crore, up 22.8% YoY. Other income grew 14.9%, YoY to Rs 68.5 crore. For FY20, PAT grew 16.3% to Rs 430.3 crore YoY.


Outlook


We value EIL at 11.5x P/E on FY22E EPS of Rs 8.0 with a revised target price of Rs 92/share and maintain BUY rating. Key risks: Any project related headwinds or delays in turnkey segment may further affect revenue growth.




For all recommendations report, click here

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First Published on Jun 29, 2020 06:38 am
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