ICICI Direct picks Engineers India as ‘high conviction idea’; here's why
Engineers India (EIL) as its 'high conviction idea' on the back of a healthy order book, strong revenue visibility, and robust financials. The brokerage has a ‘buy’ call on the stock with a target price of ₹160 for a time duration of 6 months. This implies an upside of over 26 percent from its current market price of ₹126.75 (as of October 30).
The stock has risen 85 percent in the last 1 year and 61 percent in 2023 YTD, giving positive returns in 6 of the 10 months so far of the current calendar year. However, the stock has shed 14 percent in October so far, extending losses for the third straight session since August. In these 3 months, between August and October, the stock has lost over 20 percent.
It was also in the red in February, down 18.5 percent. However, the stock gave positive returns for 5 straight months before the latest drop between March and July. In that period, it gave multibagger returns, rallying over 122 percent.
It was also positive in January, up 11 percent. Still, it is over 24 percent away from its 52-week high of ₹167.25, hit on September 5, 2023, and 53 percent away from its record high of ₹269, hit on May 7, 2010. Engineers India (EIL), established in 1965, is an Indian public sector Navratna company, primarily present in engineering consultancy and turnkey segments.
In engineering consultancy, the company’s core focus area currently is the oil & gas sector which mainly includes refinery and petrochemicals. In the turnkey segment, the company takes EPC (Engineering, Procurement & Construction) contracts. The company also secures consultancy orders from international markets such as the Middle East, Africa, South Asia & Central Asia.
Read more on livemint.com
