Buy Engineers India, target price Rs 96.5 : HDFC Securities

HDFC Securities has buy call on Engineers India with a target price of Rs 96.5. The current market price of Engineers India is Rs 84.5 Time period given by analyst is 2-3 quarters when Engineers India price can reach defined target.

Engineers India, incorporated in the year 1965, is a Mid Cap company (having a market cap of Rs 4746.45 Crore) operating in Services sector.

Engineers India key Products/Revenue Segments include Engineering Consultancy and Turnkey Project for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 858.22 Crore, up 1.84 % from last quarter Total Income of Rs 842.73 Crore and up 25.90 % from last year same quarter Total Income of Rs 681.68 Crore. Company has reported net profit after tax of Rs 85.28 Crore in latest quarter.

The company’s top management includes Ms.Vartika Shukla, Mr.Ravi Shanker Prasad Singh, Mrs.Karuna Gopal, Dr.Prashant Vasantrao Patil, Mr.Harishkumar Madhusudan Joshi, Mr.Deepak Mhaskey, Mr.Dheeraj Kumar Ojha, Mr.Sunil Kumar, Mr.Atul Gupta, Mr.Sanjay Jindal, Mr.A K Kalra, Mr.Sanjeev Kumar Handa, Mr.Jai Prakash Tomar. Company has N K Bhargava & Co. as its auditors. As on 30-06-2022, the company has a total of 56 Crore shares outstanding.

Investment Rationale
Engineers India has maintained a healthy order book over the years providing revenue visibility. Its order book as of Sep’22 stood at Rs8431.3cr (2.7x TTM revenue) providing robust revenue visibility over next couple of years.

Promoter/FII Holdings
Promoters held 51.32 per cent stake in the company as of 30-Jun-2022, while FIIs owned 7.11 per cent, DIIs 12.62 per cent.