Anup Engineering shares witnessed a surge of 15% after Ambit initiated coverage on the stock with a “Buy” rating. The firm set a target price of ₹3,800, indicating a potential upside of 63% over the next 24 months. Anup, a key player in the heavy engineering sector providing critical process equipment for refineries, petrochemicals, fertilizers, and power industries, is expected to benefit from the accelerating capex in end-user segments.
The domestic oil and gas capex is projected to increase by around 80% in the next five years. Investments led by the energy transition and hydrogen projects, which are expected to be over $0.5 trillion until CY30, provide significant growth opportunities for the company.
Anup Engineering’s current order backlog stands at 1.5 times the FY24 revenue, and the integration of its subsidiary, Mabel, is expected to drive 27% revenue and 29% EBITDA CAGR over FY24-FY27E. With solid execution capabilities, timely delivery, and diversified product offerings, the company is positioned to maintain its growth trajectory. Ambit’s optimistic view is further supported by strong accounting, predictability, and earnings momentum. The firm’s recommendation aligns with the overall positive outlook for the sector, projecting Anup Engineering to achieve its growth potential amidst the evolving industry landscape.
