Small Cap Engineering Stock Hit 52 Week High, Board Declares 150% Dividend, Gets Buy For 33% Gain

ICICI Direct initiates coverage on Anup Engineering Ltd. with a positive outlook, recommends Buy for a target price of Rs. 1,422.45 apiece. The brokerage claims a potential upside of up to 33% from its current level. It is a small-cap engineering sector stock having a market capitalisation of Rs. 1,407.68 crore.

On 17th May 2023, the Board of Directors of Anup Engineering recommended a dividend of 150% i.e. Rs. 15 per equity share or Rs 10 each for the financial year 2022-23.

Recommends Dividend

"Recommended a dividend at 150% i.e. Rs. 15/- per Equity Share of Rs. 10/- each of the Company for the year ended on 31st March, 2023," the company said in an exchange filing.

Q4FY23 Results

According to ICICI Direct, Strong revenue growth led by healthy execution. Revenue increased 44.2% YoY (up 26% QoQ) to Rs. 144.2 crore. For FY23, revenue was up 42.7% YoY to Rs. 411.3 crore. EBITDA margin improved 115 bps QoQ to 20.9%. EBITDA increased 26.9% YoY (+33.3% QoQ) to | 30.2 crore; mainly led by strong revenue growth. FY23 EBITDA was up 18.2% YoY to Rs. 82.7 crore. Adjusted PAT was up 15.9% YoY. FY23 PAT was up 10.6% to Rs. 51.4 crore.

ICICI Direct Initiates Buy For A Target Price Of Rs. 1880/share

According to the brokerage firm, Anup is on the cusp of entering a new trajectory led by new products and capex, which is expected to lead to strong topline. "We maintain BUY rating on the stock. We value Anup at Rs. 1880 i.e. 20x P/E on FY25E EPS," said ICICI Direct.

Current Market Price, 52 Week High/Low, & Returns

The stock last traded at Rs. 1,422.45 apiece, down 2.90% from its previous close of Rs. 1,464.90 apiece. The stock hit its 52 week high on 18 May 2023 at Rs. 1,497 apiece and 52-week low on 14 June 2022 at Rs. 615.90 apiece, respectively.
The stock jumped 13.92% in 1 week and 31.58% in 1 month, respectively. It has given 77.46% positive return in 1 year. It gave 430.76% robust return in 3 years. Since its listing, it has given 201.05% positive return. It was listed on 1 March 2019.

About - Anup Engineering Ltd.

Anup Engineering is one of the leading process equipment manufacturers with special focus on heat exchangers. The company has a facility in Odhav, Gujarat and is currently in the process of undertaking a greenfield expansion in Kheda. The company aims to achieve revenue of Rs. 1000 crore by FY27, implying a CAGR of ~35%.

Disclaimer - The stock has been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.