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Shares cheaper than Rs 100 will make big earnings, brokerage bets after Q2 results; Check Target Price

Buy call on Engineers India: ICICI Securities has given buy advice in view of good growth outlook and good valuation.

Engineers India share BUY call: After the results of the September quarter, the valuation of many stocks has improved for investment. Buying opportunities are being created in these stocks on the basis of better business outlook. One such stock worth less than Rs 100 is Engineers India, on which brokerage houses are giving investment advice. Brokerage ICICI Securities has given a buy call on Engineers India with a target price of Rs 109 in Engineers India keeping in view the better growth outlook and good valuation. The current price of this stock is around Rs 70.

Shares at good valuation, expect 56% return

The valuation of the stock market is very high. In such a situation, many shares have become very expensive. On the other hand, brokerage house ICICI Securities sees a good valuation of Engineers India. The current price of the stock stood at Rs 69.80 on 18 November 2021. Based on the brokerage firm’s target price of Rs 109, investors can get a strong return of about 56 percent in this stock.

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What does brokerage report say?

The brokerage firm says that the Q2FY22 performance of Engineers India’s (EIL) has been poor. This was mainly due to weak execution in the consultancy and turnkey segments. However, the company has received two major orders from Chennai Petroleum Corporation Limited (CPCL), Nagapatnam during the quarter. This is an order of around Rs 1170 crore. The order book of the company has strengthened and the outlook is looking better. The brokerage firm has reduced its earnings estimates for FY22E and FY23E to 9 per cent and 6 per cent, respectively, due to fall in margins. ICICI Securities says that it has retained ‘Buy’ rating on this stock due to healthy growth outlook and better valuation. However, the target price of the stock has been reduced from Rs 116 to Rs 109.

(Disclaimer: The investment advice here is given by the brokerage house. This is not the views of dgmartpro Business. Please consult your advisor before investing.)

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