Time period given by analyst is one year when ISGEC Heavy Engineering Ltd. price can reach defined target.
ISGEC Heavy Engineering Ltd., incorporated in the year 1933, is a Mid Cap company (having a market cap of Rs 4088.24 Crore) operating in Engineering sector.
ISGEC Heavy Engineering Ltd. key Products/Revenue Segments include Boilers, Sugar & Power Plants, Erection & Other Charges, Other Operating Revenue, Lease Rentals, Export Incentives and Waste/Scrap for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 1379.20 Crore, up 21.67 % from last quarter Total Income of Rs 1133.52 Crore and up 2.04 % from last year same quarter Total Income of Rs 1351.60 Crore. Company reported net profit after tax of Rs 10.11 Crore in latest quarter.
Investment Rationale
Despite the challenging environment and higher mix of EPC work, the liquidity situation is under control. The Philippines asset continues to be an overhang on valuation. We value the stock at a standalone target P/E multiple of 20x at Rs698 per share, ISGEC Hitachi Zosen at Rs30 per share (25x FY23E earnings) and the sugar subsidiary at Rs27 per share (5x FY23E earnings). It maintains BUY with a revised SoTP-based target price of Rs756 (previously: Rs869).
Promoter/FII Holdings
Promoters held 62.43 per cent stake in the company as of 30-Sep-2021, while FIIs owned 2.0 per cent, DIIs 6.96 per cent.
(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
