Saturday, July 31, 2010

Engineers India

Geojit BNP Paribas has recommended investors to ‘Subscribe’ to the follow-on public offer of Engineers India.

“EIL is cash rich company with surplus cash of Rs 1,700 crore as on March 31, 2010 which works out to ~ Rs 50 per share.


Company is offering share @ 18-19 times FY 2011 expected EPS of Rs 15/- and 15-16 times FY 2012 expected EPS of Rs 18/. EIL is expected to grow @ 30-35% for next 3-5 years. Hence, we recommend to “SUBSCRIBE,” the report said.


Engineers India Ltd. is a different kind of capital goods sector play. This is a very high end technology in-house, existing with a player. It is entirely the software that it has with itself. It caters to the oil and the engineering sector. We are seeing a lot of traction in new projects out there. The gas and the oil sector are set to boom in this country and over the last couple of decades Engineers India Ltd. has been doing a good service there. It's a very unique kind of company and going forward I see both top line and bottom line growth very significantly and in the follow through offer that is coming, retail is getting an excellent chance to come in at the stock at a discount.
 
 
Courtesy:
http://economictimes.indiatimes.com/Views/Recommendations/articleshow/6231979.cms
http://economictimes.indiatimes.com/Views/Recommendations/articleshow/6226865.cms

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