Anup Engineering Faces Tax Demand Notice: Stock Update & Growth Potential
Business and Industry Overview:
The Anup Engineering Limited (AEL) is a company in India that makes big machines. These machines help in oil, gas, chemicals, power, water, and space industries. AEL was part of Arvind Limited but became its own company in 2018. It has been making machines for more than 60 years. The factory is in Ahmedabad, India, and is very big. AEL sells machines in India and other countries. From 2022 to 2024, AEL made much more money. Its export sales increased a lot. The company wants to grow even more every year.
In 2024, AEL started working with Graham Corporation, a company from the USA. AEL now makes special products for Graham. AEL also bought Mabel Engineers, a company in Tamil Nadu, for Rs. 33 crore. This helps AEL make more things like Silos and Tanks. Mabel’s factory is also big.
The industry AEL works in is growing fast. In 2022, the Indian electrical equipment market was worth US$ 52.98 billion. It will grow to US$ 125 billion by 2027. The construction equipment market was US$ 7.2 billion in 2023. It will grow more each year. The Indian government is spending a lot of money on roads, bridges, and factories. In 2024, the government planned to spend Rs. 11.11 lakh crore (US$ 133.5 billion). They want to build many more roads by 2025. A special fund will also help small cities grow.
The government is helping companies like AEL. Foreign companies can invest in India’s engineering sector. The government is spending Rs. 1,207 crore (US$ 145.1 million) to help engineering companies. India wants to be a top country in making electrical equipment. The goal is US$ 100 billion in production. The government is also bringing in private investments to build railways, roads, and power plants.
By 2030, India wants to be a top country for making construction equipment. With all these plans, The Anup Engineering Limited is ready to grow and make more machines for many industries.
Latest Stock News:
Anup Engineering got a letter from the tax office on February 19, 2025. The tax office says the company must pay INR 33.2 million. They took tax money they should not have and did not pay tax on shipping. There is also a big fine and extra money for being late. The company does not agree and will ask another office to check. After this news, the company’s stock price went down by 4.25% to INR 2,913.90. The stock price has moved between INR 3,047.05 and INR 2,881.00. In the last year, the stock price dropped by 12.92%, but in the last five days, it went up by 7.07%. The company made INR 30.21 crore profit recently. More people are putting money into the company. Other similar companies also saw small changes in stock prices. People are waiting to see what happens next.
Potentials:
Anup Engineering is growing fast. Experts say its business will grow by 33% every year until 2026. The company is making more money than other companies in the same field. It is keeping good profits and selling more products.
The company is working to make things faster and cheaper. Many industries like medicines, chemicals, and oil need the kind of equipment Anup Engineering makes. The company is also creating new products to stay ahead of others. The leaders of the company are making good decisions.
A new factory is being built in Kheda, Gujarat. This factory will make very big machines. Phase 1 started in October 2024 and can earn INR 200 crore every year. Phase 2 is now being built with INR 50 crore and will be ready by late 2026. When done, the factory will have three sections and can earn INR 300-400 crore every year. The company also opened a new office in Vadodara, Gujarat. The business is growing, but stock prices may still go up and down.
Analyst Insights:
- Market capitalisation: ₹ 5,838 Cr.
- Current Price: ₹ 2,915
- 52-Week High/Low: ₹ 3,859 / 1,250
- P/E Ratio: 44.7
- Dividend Yield: 0.50 %
- Return on Capital Employed (ROCE): 22.6 %
- Return on Equity (ROE): 20.7 %
Anup Engineering is performing well. The company has reduced debt and is almost debt-free, making it financially stable. It has been making more money every year for the last five years, growing at 18.9% annually. It is also returning money to investors through steady dividends. Additionally, customers are paying faster, and the company is handling money more efficiently, reducing its working capital needs. However, there are some concerns. The stock price is currently high compared to what the company is worth, making it a risky buy right now. Also, the company is paying a lower tax rate, which may change in the future.
Because of this, the recommendation is to HOLD the stock. If you already own it, keeping it is a good idea because the company is strong. But if you want to buy, it may be better to wait until the price drops to a better level.