Anup Engineering Ltd. (ANUP) AI Stock Analysis

• Market Cap: ₹31.83B
• Dividend Yield: 0.77%
• Average Volume (3M): 1.82K
• Price to Earnings (P/E): 44.0
• Beta (1Y): 0.74
• Revenue Growth: 28.24%
• EPS Growth: -0.43%
• Country: IN
• Employees: 243
• Sector: Services
• Sector Strength: N/A
• Industry: Industrial - Machinery
• EPS (TTM): 12.75
• Shares Outstanding: 20,031,466
• 10 Day Avg. Volume: 2,058
• 30 Day Avg. Volume: 1,825
• PEG Ratio: 4.26
• Price to Book (P/B): 11.11
• Price to Sales (P/S): 9.28
• P/FCF Ratio: -131.33
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹2,535.00
• Price Target Upside: 8.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 57.3
• Revenue Forecast (FY): ₹8.50B

• Rating: 62 Neutral
• Price Target: ₹1,535.00 ▼(-34.42% Downside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is primarily supported by strong income-statement performance and a solid, low-leverage balance sheet, but is held back by negative operating/free cash flow in 2025 and clearly bearish technicals (price below all key DMAs with negative MACD). Valuation is a secondary drag due to a relatively high P/E despite a modest dividend yield.

Positive Factors

Revenue Growth Trend

Sustained ~25% revenue growth through 2025 indicates durable demand for engineered-to-order equipment and successful order execution. Over 2–6 months this trend supports expanding scale, stronger bargaining power with suppliers, and deeper client relationships that underpin repeat project flows.

Margin Improvement

Material gross and net margin improvements reflect pricing power and operational efficiency in heavy fabrication and process equipment. Higher margins create a durable earnings buffer against cyclical revenue swings, enable reinvestment in capabilities, and strengthen ability to bid competitively on complex ETO projects.

Healthy Balance Sheet

A high equity ratio and low leverage give lasting financial flexibility to fund working capital, bid on large multi‑year contracts, and absorb project timing mismatches without urgent refinancing. This structural strength reduces insolvency risk and supports strategic investments over months.

Negative Factors

Weak Cash Conversion

Negative operating and free cash flow show earnings are not converting to cash, likely due to milestone billing, inventories or receivables tied to long projects. This persistent conversion gap raises liquidity and execution risk, possibly forcing external financing or tighter supplier terms until working capital normalizes.

Rising Liabilities

An uptick in total liabilities, combined with weak cash conversion, can erode financial flexibility. Higher obligations may raise interest and covenant risk, constrain capital allocation, and amplify stress on cashflows during project delays. Monitoring liability composition is crucial for medium‑term stability.

Cyclicality / ETO Exposure

Dependence on engineered‑to‑order contracts and process‑industry capex makes revenue lumpy and highly cyclical. Backlog and near‑term visibility can swing with sector capex, creating persistent volatility in utilization, margins and working capital needs that can constrain planning and profitability over multiple quarters.

Anup Engineering Ltd. Business Overview & Revenue Model

Company Description

The Anup Engineering Limited, together with its subsidiaries, manufactures and fabricates process equipment for chemicals, petrochemicals, pharmaceuticals, fertilizers, drugs, oil and gas, power, pulp and paper, water, aerospace, LNG, and other industries in India. The company provides static process equipment, including heat exchangers, reactors, pressure vessels, columns and towers, and custom fabrication products; technology products; dished ends; and industrial centrifuges, as well as pre-fabrication engineering services for static process equipment to its customers. It also exports its products. The company was formerly known as Anveshan Heavy Engineering Limited and changed its name to The Anup Engineering Limited in January 2019. The Anup Engineering Limited was incorporated in 2017 and is based in Ahmedabad, India.

How the Company Makes Money

ANUP primarily makes money by executing customer orders for engineered-to-order (ETO) industrial equipment and fabrication work. Revenue is generated through: (1) Sale of manufactured process equipment: Customers (typically EPC contractors and industrial plant owners/operators) place purchase orders for specified equipment; ANUP designs (as required), procures inputs (plates, pipes, forgings, bought-out components), fabricates and tests the equipment, and delivers it. Billing is generally linked to contract terms such as progress milestones and/or dispatch/acceptance, creating project-based revenue. (2) Heavy fabrication and job-work/services: ANUP undertakes fabrication, welding, machining, assembly, testing, and other shop-floor services for industrial clients, earning fees based on scope, man-hours, tonnage, or agreed contract rates. (3) Project execution/aftermarket-related work (where contracted): Additional earnings may come from modifications, refurbishment, spares, or support services tied to installed equipment; specific details are null if not publicly specified. Key factors that drive earnings include the order book from refineries/petrochemical and other process-industry capex cycles, ability to meet stringent quality and delivery requirements, and effective sourcing and cost control for raw materials and subcontracted processes. Significant partnerships or named long-term customer arrangements are null if not publicly specified.

Anup Engineering Ltd. Financial Statement Overview

Summary

Strong profitability and growth with improving gross margin (45.7% in 2025) and solid net margin (16.1%). Balance sheet is healthy with low leverage and strong equity ratio (66.1%), but the key offset is weak cash conversion: operating cash flow and free cash flow turned negative in 2025, raising liquidity and execution risk.

Income Statement

Anup Engineering Ltd. demonstrates strong revenue growth with a remarkable increase from 2020 to 2025. The gross profit margin has improved consistently, reaching 45.7% in 2025. The net profit margin is robust at 16.1% for 2025, indicating effective cost management. EBIT and EBITDA margins are healthy, reflecting operational efficiency. Overall, the company shows excellent revenue growth and profitability, but there is a need to maintain this trajectory to safeguard against future market fluctuations.

Balance Sheet

The company's balance sheet is solid with a low debt-to-equity ratio, showing prudent financial management. The equity ratio is strong at 66.1% in 2025, indicating a healthy capital structure. Return on equity is notable, evidencing efficient use of shareholder funds. However, the increase in total liabilities warrants careful monitoring to ensure sustained financial stability.

Cash Flow

Cash flow from operating activities has been volatile, with a negative operating cash flow in 2025. The free cash flow has also turned negative, suggesting potential cash management challenges. The operating cash flow to net income ratio is concerning, indicating that earnings are not effectively converting to cash. Attention to cash flow management is crucial to improve liquidity and support ongoing growth.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	8.01B	7.33B	5.46B	4.11B	2.87B	2.76B
Gross Profit	3.98B	3.35B	2.17B	1.90B	1.29B	1.16B
EBITDA	1.84B	1.65B	1.35B	826.22M	735.95M	731.78M
Net Income	1.20B	1.18B	1.03B	514.30M	620.54M	535.23M
Balance Sheet
Total Assets	9.97B	9.26B	8.08B	6.43B	5.25B	4.31B
Cash, Cash Equivalents and Short-Term Investments	153.45M	263.13M	1.22B	310.88M	498.86M	208.69M
Total Debt	1.58B	324.18M	202.80M	343.40M	0.00	0.00
Total Liabilities	3.61B	3.14B	2.80B	2.05B	1.32B	935.73M
Stockholders Equity	6.36B	6.12B	5.28B	4.38B	3.93B	3.37B
Cash Flow
Free Cash Flow	-1.01B	-517.72M	1.26B	-449.01M	324.91M	127.00M
Operating Cash Flow	-621.93M	-71.53M	1.69B	300.17M	740.43M	529.81M
Investing Cash Flow	-287.98M	219.08M	-1.53B	-333.84M	-613.45M	-119.16M
Financing Cash Flow	887.15M	-304.78M	-302.21M	249.60M	-70.72M	-380.18M

Anup Engineering Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2340.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ANUP, the sentiment is Neutral. The current price of 2340.5 is above the 20-day moving average (MA) of 1565.66, above the 50-day MA of 1792.85, and above the 200-day MA of 2272.72, indicating a neutral trend. The MACD of -65.74 indicates Negative momentum. The RSI at 44.81 is Neutral, neither overbought nor oversold. The STOCH value of 73.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:ANUP.

Anup Engineering Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AHLUCONT	68 Neutral	₹48.68B	30.38	―	0.06%	5.56%	-22.59%
JKIL	67 Neutral	₹36.83B	13.34	―	0.67%	13.96%	12.91%
ANUP	62 Neutral	₹31.83B	43.98	―	0.77%	28.24%	-0.43%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
QUESS	55 Neutral	₹26.48B	13.93	―	4.70%	-16.43%	-75.38%
ITDC	53 Neutral	₹36.52B	44.72	―	0.50%	6.56%	4.21%
TARC	46 Neutral	₹36.21B	-59.93	―	―	863.34%	48.32%

Anup Engineering Ltd. Corporate Events

Anup Engineering Publishes Postal Ballot and E-Voting Notice in Newspapers

The Anup Engineering Limited has notified the stock exchanges that it has published newspaper advertisements on 10 February 2026 in the Financial Express, in both English and Gujarati editions. These advertisements relate to a postal ballot notice and the schedule and details of remote e-voting being provided to shareholders.

By formally disclosing the publication of the postal ballot and e-voting information, the company is signaling compliance with SEBI’s disclosure and investor communication requirements. The move ensures shareholders are informed about upcoming resolutions and voting procedures, reinforcing transparency and corporate governance standards for investors.