Reduce Engineers India, target price Rs 60: Edelweiss
Engineers India Ltd., incorporated in the year 1965, is a Mid Cap company (having a market cap of Rs 4379.15 Crore) operating in Services sector.
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Promoters held 51.5 per cent stake in the company as of June 30, 2020, while FIIs held 7.6 per cent, DIIs 25.5 per cent and public and others 15.4 per cent.
Edelweiss has given reduce rating to Engineers India with a target price of Rs 60. The share price moved up by 1.40 per cent from its previous close of Rs 67.85. The stock’s last traded price is Rs 68.80.
Engineers India Ltd., incorporated in the year 1965, is a Mid Cap company (having a market cap of Rs 4379.15 Crore) operating in Services sector.
Financials For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 474.50 Crore, down 45.10 % from last quarter Sales of Rs 864.38 Crore and down 36.11 % from last year same quarter Sales of Rs 742.66 Crore. The Company reported net profit after tax of Rs 49.50 Crore in latest quarter.
Investment Rationale While execution is expected to sustain given robust order book (~3x TTM revenue) despite the near-term slowdown, delays in order finalisation, appointment of more than one consultant and governments privatisation drive could impact long-term visibility. Hence, the brokerage maintains ‘REDUCE/SU’. Promoter/FII Holdings Promoters held 51.5 per cent stake in the company as of June 30, 2020, while FIIs held 7.6 per cent, DIIs 25.5 per cent and public and others 15.4 per cent.
