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The data used here, is derived from the sources, deemed to be reliable, but their accuracy and completeness is not guaranteed. The author is not responsible for any loss in investments made, based on the inputs provided here - 28th May, 2006.
Monday, May 23, 2016
Engineers India Ltd: Buy
CMP: Rs.177 Target: Rs.185 Period: 7 days
Engineers India Ltd., Navratna public-sector undertaking, will announce its financial results on May 23 for the fourth quarter ended March 31, 2016.
IIFL estimates the company’s net profit to rise to Rs.91 crore at 46.1% Q-o-Q; however, it is likely to fall 16.7% Y-o-Y.
As per IIFL’s forecast, the company’s net revenue for Q4 FY16 is expected to soar to Rs.429 crore at 16.5% Q-o-Q; however, the same is likely to fall 12.2%,Y-o-Y.
Operating profit margin is likely to come in at 17.5%, with a Q-o-Q rise of 700 bps and 178 bps on a Y-o-Y basis. Not bad results at all.
Moreover, the daily candle stick chart is giving some indication of the scrip bottoming out. In such circumstances it would be prudent to take position in the share of Engineers India Ltd at the CMP of Rs.177, for a short term target of Rs.185. SL--Rs.175 (strict).