Engineers India Ltd. share price target

Going forward, we expect revenue, EBITDA to grow at CAGR of 4.9%, 19% CAGR, respectively, in FY20-23E with gradually increasing contribution from the consultancy segment over the next two to three years. EIL's balance sheet continues to remain healthy with zero debt and cash balance of ~| 1500 crore despite investment of ~| 700 crore in NRL and ~ | 650 crore towards share buyback. We value core business at 10x P/E on FY23E EPS of | 8.0 and investments at book value multiple with revised target price of...

includes Petrochemcial expansion of BPCL and HMEL, MRPL refinery Bina refinery expansion to be awarded in FY22. In the short term, we expect second wave of Covid 19 to impact the performance of company. However, given EIL's healthy order book, lean balance sheet, strong project pipeline and good growth visibility augurs well in the long run. Given healthy FY21 performance primarily led by turnkey segment, we have revised our earnings estimate by 11.3%/11.9% for FY22E/23E. The stock is currently trading at 10.2x/7.8x FY22E/23E. We...

Order inflows of ~Rs1.9bn (down 48% YoY) constitutes of consultancy segment taking total order backlog to ~Rs83bn. Engineers India (EIL) reported subdued revenues of Rs8.4bn, down 6% YoY led by covid related execution challenges. Overall weak operating performance at turnkey levels led to lower than expected profitability. Margins in turnkey projects were weak at 1.4% v/s 3% in 3QFY20 and 1.9% in 2QFY21 thereby lowering overall margins. Order inflows de-grew by 48% YoY...

Decent inflows for H1FY21 but cautious guidance for FY21E For Q2FY21, EIL's order inflows were decent at | 594 crore (| 166.7 crore in Q2FY20), all in the consultancy segment, primarily from customers like Gail, Odisha Mining, Bangladesh Petroleum, AAI, etc. Order book as on Q2FY21 was at | 8978 crore (vs. | 9116.8 crore in Q2FY20) comprising 49% from consultancy and 51% from turnkey segment. For Q2FY21, 86% came from domestic while 14% was from the overseas market. Decent order pipeline for next two years amid challenges...

Engineers India's (ENGR) 2QFY21 revenues were in-line with our estimates. Operating profit came in 13% lower than our estimate, owing to lower profitability from the Turnkey segment and a couple of one-off incomes, which was part of the operating profit of the base quarter. The buyback proposal for acquisition of 69.9m shares (~11% of total shares) at INR84/share is expected to be completed in the next three months. The same would happen via a tender offer, and the Government of India (GoI) would participate, with a stipulation of maintaining its shareholding at 51%...

order book declined 17% YoY to Rs90bn. Management indicated the tendering pipeline remains healthy as the process of ordering continues during 1Q and expects an order inflow of ~Rs15bn for FY21E. Key project such as NRL, Kaveri Basin (few packages), HEML, petrochemical projects, etc. to be awarded in FY21E. HMEL petchem, MRPL expansion, Panipat...

Management indicated the tendering pipeline remains healthy as the process of ordering continues during 1Q and expects an order inflow of ~Rs15bn for FY21E. Key project such as NRL, Kaveri Basin (few packages), HEML, petrochemical projects, etc. to be awarded in FY21E. On the international market the company is witnessing a slowdown in ordering as countries like Oman, UAE, Saudi, etc have deferred their capex plan. We believe execution to remain under pressure for 2Q given the current challenging environment and is expected to garner pace from 3Q onwards....

15 August 2020 Engineers India (ENGR)s revenues were 14% higher than estimated; however, the lack of operating leverage led to a 16% miss in EBITDA. Margins in consultancy projects were weak at 14.3% v/s 39.3% in 1QFY20. Order inflows plunged 91% YoY to INR810m, with another INR160m worth of orders received thus far. Order inflows were primarily from the Hydrocarbon segment. The order book (OB) declined 20% YoY to INR91.2b, with OB/rev at 3.1x, the lowest in last four years. With superior execution and lower order inflows, a depleting order book remains a concern, although it is not alarming at this stage. On account of lower order inflows and a hazy outlook for FY21E, we reduce our FY21/FY22E EPS by 14%/5% and maintain our Buy rating, with TP of Revenue fell 36% YoY to INR4.7b (14% above our estimates). EBITDA was down 85% YoY to INR214m (16% below our estimate). The EBITDA margin stood at 4.

Decent inflows for FY20, cautious guidance for FY21E Order inflows for Q4FY20 came in at | 146 crore (| 1617 crore for FY20). All was from consultancy segment, taking the order backlog to | 9555 crore. For FY20, within consultancy, 50% came from domestic market, 50% from overseas market mostly from hydrocarbon sector, primarily from customers like MRPL, Numaligarh Refinery Expansion, IOCL, HPCL, ADNOC, etc....

26 June 2020 Revenues came in higher than estimated, led by superior performance in the Turnkey segment (74%/50% YoY increase in 4QFY20/FY20). With this, the revenue share of the low-margin Turnkey segment stood at 51% in FY20, up from 45% in FY19. An adverse revenue mix led to decline in EBITDA margins in 4QFY20/FY20. The order book declined 15% YoY to INR95.5b, with OB/Rev at 3x, the lowest in the last four years. With superior execution and lower order inflows, a depleting order book remains a concern, although it is not alarming at this stage. We tweak our FY21/FY22E EPS by -2%/+1% and maintain our Buy Revenues came in at INR8.5b, up 39% YoY (11% above estimate). EBITDA stood at INR1.1b, up 19% YoY (in-line). The EBITDA margin declined 220bp YoY to 13% on an adverse revenue mix. PBT stood at INR1.7b, up 17% YoY (in-line). The effective tax rate stood at 24.7% in 4QFY20 (v/s 35.