ISGEC Heavy Engineering
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
ISGEC Heavy Engineering's management has expressed a cautiously optimistic outlook for FY27, supported by a robust order book of INR 7,000 crores and a strong inquiry pipeline. The strategic focus on shorter-gestation projects is expected to stabilize margins in the EPC segment, while the manufacturing division continues to drive growth. Despite facing inflationary pressures on raw materials and logistics, ISGEC's diversified exposure across sectors such as power and automotive positions it well to sustain momentum. The recent transition of its Philippines ethanol unit to a cash-positive phase marks a significant operational milestone, although its long-term divestment remains uncertain. Vista's financial outlook reflects stable revenue growth and margins, with a fair valuation aligned with intrinsic value. The favorable macro environment, characterized by robust manufacturing activity and supportive liquidity conditions, further enhances ISGEC's growth prospects. Over the next 12-24 months, key opportunities include capitalizing on industrial capex cycles and expanding export markets, while watchpoints include geopolitical risks in the Philippines and execution complexities in large projects
Why We Like This Stock
- Strong order book and inquiry pipeline support revenue stability
- Strategic pivot towards shorter-gestation projects is expected to stabilize margins
- Diversified industry exposure mitigates risks from localized downturns
Things To Watch Out For
- Inflationary pressures on raw materials and logistics could impact margins
- Geopolitical uncertainties in the Philippines pose operational risks
- Execution complexities in large-scale industrial projects may hinder performance
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 6,218 | 6,422 | 6,789 | 8,131 | 8,681 |
| Profit Before Tax (Cr.) | 380 | 474 | 324 | 220 | 280 |
| PBT Margin | 6.1% | 7.4% | 477.2% | 2.7% | 3.2% |
| Net Profit (Cr.) | 271 | 316 | 165 | 165 | 153 |
| Earnings Per Share | 35.3 | 41.0 | 16.3 | 16.3 | 20.8 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
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Isgec Heavy Engineering Limited provides engineering solutions worldwide. It operates in two segments, Manufacturing of Machinery & Equipment; and Industrial Projects. The company provides process plant equipment, including reactors, high pressure vessels, shell and tube heat exchangers, columns and towers, and high pressure boiler drums; boilers, such as solid and biomass fuels, bagasse and biomass, oil and gas fired, blast furnace gas fired, waste to energy, and heat recovery boilers, as well as auxiliaries comprising air pollution control equipment, bag filters, SCR/SNCR, flue gas desulphurization systems, and deaerators; and site construction and commissioning, operation and maintenance, supervision, retrofitting and modernization, residual life assessment studies, spares, and technical assistance services. It also offers engineering, procurement, and construction services; sugar plants and machinery that include mills, diffusers, process house equipment, sugar refinery, turnkey distillery plants, and spares and retrofits; presses, such as mechanical and hydraulic straight sided, mechanical gap and ring frame, and servo presses; and steel castings, including steam/gas turbine, hydro turbine, valve, pump, mining and crushing, and general engineering castings. In addition, the company provides iron castings, air pollution control equipment, and liquefied gas containers, as well as contract manufacturing services. Further, it manufactures and sells sugar and its by-products, and ethanol and its by-products. It serves power, fertilizer, sugar and distillery, oil and gas, petrochemicals, automobile, steel, defense, cement, and chemicals industries. The company was formerly known as The Saraswati Industrial Syndicate Limited and changed its name to Isgec Heavy Engineering Limited in 2011. The company was incorporated in 1933 and is based in Noida, India.