Brokerages are Bullish on Engineers India Stock, Expect It to Go Up 40%

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Brokerages are Bullish on Engineers India Stock, Expect It to Go Up 40%
Credit: © Reuters.

By Aditya Raghunath

Investing.com -- Public-sector unit Engineers India (NS: ENGI ) closed June 9 at Rs 83.7. The company reported a consolidated total income of Rs 1,171.75 crore for the March 2021 quarter, up 25.90% from the corresponding quarter in the last year. It reported a net profit of Rs 31.41 crore for the March 2021 quarter.

ICICI Securities has recommended a buy on the stock with a target price of Rs 116, a potential upside of over 38% from the June 9 closing price. The brokerage firm said, “EIL has a strong balance sheet with net cash of Rs 15.3bn [Rs 1,530 crore], despite Rs7bn [Rs 700 crore] investment in Numaligarh and ~Rs 6.5bn [Rs 650 crore) of buyback. The company has witnessed improvement in cash flows and a reduction in working capital. RoEs are expected to trend high due to lean balance sheet and free cash flows, which are set to be positive. Given the healthy growth outlook, we maintain BUY on the stock with a revised target price of Rs116 as we roll forward our multiple to FY23E earnings.”

Motilal Oswal (NS: MOFS ) has also recommended Engineers India. In an interview with Economic Times, Hemang Jani, an equity strategist from Motilal Oswal said that the firm expects a 25-30% upside on the stock.

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