'Subscribe to Engineers India FPO'

MUMBAI: State-owned Engineers India has entered the capital market with its follow-on public offer by issuing 3.36 crore shares in the price-band of Rs 270-290 per share.

Sameer Panke, research analyst, Dolat Capital is of the view that the stock is fairly valued at these levels.

“The stock is fairly valued at the price-band of Rs 270-290. Positive surprises are expected as the company plans to venture into new growth areas like nuclear power, city gas distribution, solar power and water projects.

It’s a zero debt company with Rs 1700 crore in cash. Engineers India is expected to maintain its topline growth of 30-35 per cent in next two years. Long term investors can ‘Subscribe’ to the issue,” he said.