ICICI Direct Places Buy On Navratna Stock, Hits Back-To-Back 52-Week High, Up 70.80% In 3 Months

ICICI Direct has placed a Buy on Navratna company, Engineers India Ltd. (EIL) with a target price of Rs 160 per share. The stock is likely to give a decent upside of up to 16%. The shares witnessed 6.44% upside in 1 week. It hit 4 back-to-back 52-week high in the past 1 week. EIL is a construction sector midcap PSU stock having a market capitalisation of Rs 7,27564 Crore.

In FY23, company's consolidated revenue stood at Rs 3330 crore (+14.3% YoY) with net profit of Rs 346 crore (+148% YoY). Engineering consultancy contributed ~43% to total revenues in FY23 while turnkey segment contributed ~57%, according to brokerage.

Rating and Target Price

ICICI Direct said, "With strong capability & track record in terms of execution, healthy orderbook, huge order inflow opportunity, recovery in high-margin consultancy biz & debt-free balance sheet, we believe company's financial performance to improve significantly over FY23-25E as compared to FY20-23.."
It added, "Valuation at 13.6x P/E on FY25E EPS looks attractive considering the multiple tailwinds. We value EIL at Rs 160 i.e. 17x P/E on FY25E EPS of Rs 9.3."

Stock Movement

On Monday, the shares of Engineers India last traded at Rs 127.90 per share on BSE, up 0.83% from its previous close of Rs 126.85 per share. The stock traded new 52-week high value at Rs 133.10 per share. It traded 52-week low value at Rs 60.20 per share.

The stock jumped 6.44% in the past 1 week. It jumped 14.27% in 1 month, while in 3 months, it jumped 70.80% and in 6 months it jumped 50.79%, respectively. It gave 111.56% multibagger return in 1 year. It gave 80.55% positive return in 3 years and 2.97% in 5 years, respectively.

About - Engineers India Ltd. (EIL)

Engineers India (EIL), established in 1965, is an Indian public sector Navratna company, primarily present into engineering consultancy and turnkey segments. In engineering consultancy, company's core focus area currently is oil & gas sector which mainly includes refinery and petrochemicals. In turnkey segment, company takes EPC (Engineering, Procurement & Construction) contracts. The company also secures consultancy orders from international markets such as Middle East, Africa, South Asia & Central Asia.

Disclaimer

The stock has been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.