Engineers India Ltd. share price target

to HPCL's Vizag refinery expansion (to 15mtpa from 8.3mtpa) and BPCL's Kochi refinery TARGETRS246(+18%) petchem complex. The 7mtpa Vizag expansion will entail a capex of Rs 184bn and could translateintoanopportunityofRs7.5bnforEILwhiletheRs46bnKochipetchemproject COMPANYDATA...

oil refineries because their business models are delinked from upstream (insulating their cash flows from the impact of a sharp decline in oil prices) and due to strong domestic demandforfuel(+10%YoYinFY16YTD).Asaresult,thethreeOMCs(HPCL,BPCLandIOCL)...

yoy) and flat EBITDA margins in FY16. It does not anticipate additional provision for CPCL CokerOvenUnit,ChennaiwhereithasalreadyprovidedRs1.1bnincostoverruns.Welower our FY16 and FY17 estimates by 11% and 8% and maintain Neutral rating with a revised...

EIL's quarterly revenue declined by -1% on Y-o-Y basis and increased by 23% on Q-o-Q basis to Rs.4885 mn. EBITDA increased by 105% and 16% on Q-o-Q and Y-o-Y basis respectively. PAT is up by 82% and 5% to Rs.1089 mn on Q-o-Q and Y-o-Y basis respectively. Revenue from high margin PMC business declined by 3% on Y-o-Y basis but shown signs of recovery if compared on Q-o-Q basis where it is up by 9% to Rs.2550 mn. Revenue from Turnkey projects improved by 1% and 43% on Y-o-Y basis and Q-o-Q basis respectively to Rs.2335 mn.

Company Update:Engineers India Limited

Karvy initiates coverage of Engineers India Ltd with a Buy Rating. We expect EBITDA and Net Profit to increase at a CAGR of 13% & 9.6%, respectively over FY14-16E with major contribution from overseas business.

Engineers India Ltd is a PSU engineering consultancy company which provides design, engineering, procurement, construction and integrated project management services, principally focused on the oil and gas and...