Goal: ₹3,800
CMP: ₹2,740.60
We provoke protection on The Anup Engineering Ltd (Anup) with a Purchase ranking and a TP of ₹3,800. We consider Anup will get pleasure from a robust runway of progress contemplating a world concentrate on vitality transition and vitality safety for which Anup’s merchandise are indispensable.
The corporate’s enlargement plan has been carried out strategically to facilitate the manufacturing and supply of larger-diameter merchandise and cater to a bigger pool of shoppers. Moreover, the corporate has an enormous scope for additional enhancing its TAM as and when it will get into new technological tie-ups, like its present tech tie-up with Lummus Know-how for Helical Warmth Exchanger.
Rising concentrate on hydrogen manufacturing globally and accelerating end-user capex within the Oil & Gasoline sector bodes nicely for Anup’s secular progress decreasing dangers of cyclicality and enhancing demand prospects.
The corporate’s capability enlargement plans, tech tie-ups, good order backlog, well timed execution capabilities, and long-standing buyer base are robust pillars for constant excessive progress going ahead. Our Purchase ranking displays Anup’s superior profitability, smart capital allocation, robust sector tailwinds, and potential for robust gross sales progress over the subsequent few years. Optimistic sector tailwinds additionally justify its premium valuation versus different friends.
Key draw back dangers: international financial slowdown, new O&G capex delays, capability enlargement delays, and better competitors.
