Anup Engineering Ltd. (ANUP) AI Stock Analysis

• Market Cap: ₹35.54B
• Dividend Yield: 0.77%
• Average Volume (3M): 1.82K
• Price to Earnings (P/E): 29.6
• Beta (1Y): 0.72
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ₹1,915.00 ▼(-18.18% Downside)

Anup Engineering Ltd. has a strong financial foundation with robust growth and profitability, but cash flow management issues pose a risk. Technical indicators show bearish momentum, and the valuation suggests the stock may be overvalued. Addressing cash flow challenges and improving market sentiment could enhance the stock's attractiveness.

Positive Factors

Strong Revenue Growth

Sustained ~28% revenue growth reflects successful order wins and expanding commercial traction across process-industry end markets. Over a multi-quarter horizon this supports scale economies, better absorption of fixed costs, and a firmer base for reinvestment and backlog visibility.

Healthy Profit Margins

Elevated gross and net margins indicate structural pricing power and operational efficiency in engineered-to-order fabrication. High margins provide durable earnings cushion, enabling reinvestment, selective bidding on complex projects, and resilience to moderate input cost volatility over the medium term.

Strong Capital Structure

A high equity ratio and low leverage signal conservative financing and financial flexibility. This durable balance-sheet strength supports bidding on large EPC projects, cushions cyclical downturns, and reduces refinancing risk, allowing the company to pursue strategic investments without urgent external funding.

Negative Factors

Weak Operating Cash Conversion

Earnings are not translating into cash, with negative OCF and FCF indicating working-capital or milestone-billing timing issues. Over months this constrains liquidity, limits capacity for capex or debt reduction, and forces reliance on external financing to fund growth or absorb project delays.

Revenue Cyclicality / Order-Book Risk

Dependence on industrial capex cycles and EPC ordering patterns creates structural demand volatility. As an ETO supplier, revenues and utilization hinge on customer capex timing and large project awards, making medium-term revenue visibility and planning more uncertain during industry downturns.

Rising Total Liabilities

A rising liability base, even with healthy equity, can erode financial flexibility if sustained. Over 2-6 months growing liabilities may increase funding costs, tighten covenant headroom, and magnify refinancing or working-capital risks, particularly given current negative cash-flow conversion.

Anup Engineering Ltd. Business Overview & Revenue Model

Company Description

Anup Engineering Ltd. (ANUP) is a prominent engineering company based in India, specializing in the manufacturing of precision-engineered products and components primarily for the oil and gas, petrochemical, and power sectors. The company offers a range of services including design, fabrication, and installation of high-quality equipment and systems, contributing to various industrial applications. ANUP is known for its innovative solutions and commitment to quality, positioning itself as a reliable partner in the engineering and manufacturing landscape.

How the Company Makes Money

Anup Engineering Ltd. generates revenue through multiple streams, primarily focusing on the sale of its manufactured products which include pressure vessels, heat exchangers, and other critical components for industrial applications. The company engages in long-term contracts with major players in the oil, gas, and power sectors, ensuring a steady flow of income. Additionally, ANUP benefits from service contracts that encompass maintenance, repair, and upgrade services for existing equipment, further diversifying its revenue. Strategic partnerships with leading firms in its sectors enhance its market reach and provide opportunities for collaborative projects, contributing to its overall financial performance.

Anup Engineering Ltd. Financial Statement Overview

Summary

Anup Engineering Ltd. shows strong revenue growth and profitability with a solid balance sheet. However, cash flow management issues, including negative operating and free cash flow, need attention to maintain liquidity and support growth.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.62B	7.33B	5.46B	4.11B	2.87B	2.76B
Gross Profit	3.44B	3.35B	2.17B	1.90B	1.29B	1.16B
EBITDA	1.76B	1.65B	1.35B	826.22M	735.95M	731.78M
Net Income	1.21B	1.18B	1.03B	514.30M	620.54M	535.23M
Balance Sheet
Total Assets	0.00	9.26B	8.08B	6.43B	5.25B	4.31B
Cash, Cash Equivalents and Short-Term Investments	240.93M	263.13M	1.22B	310.88M	498.86M	208.69M
Total Debt	0.00	324.18M	202.80M	343.40M	0.00	0.00
Total Liabilities	-6.12B	3.14B	2.80B	2.05B	1.32B	935.73M
Stockholders Equity	6.12B	6.12B	5.28B	4.38B	3.93B	3.37B
Cash Flow
Free Cash Flow	0.00	-517.72M	1.26B	-449.01M	324.91M	127.00M
Operating Cash Flow	0.00	-71.53M	1.69B	300.17M	740.43M	529.81M
Investing Cash Flow	0.00	219.08M	-1.53B	-333.84M	-613.45M	-119.16M
Financing Cash Flow	0.00	-304.78M	-302.21M	249.60M	-70.72M	-380.18M

Anup Engineering Ltd. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ANUP, the sentiment is Negative. The current price of 2340.5 is above the 20-day moving average (MA) of 1968.43, above the 50-day MA of 2125.52, and below the 200-day MA of 2475.64, indicating a bearish trend. The MACD of -119.72 indicates Positive momentum. The RSI at 28.95 is Positive, neither overbought nor oversold. The STOCH value of 23.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	₹58.27B	22.19	―	0.06%	5.56%	-22.59%
JKIL	67 Neutral	₹43.09B	10.56	―	0.67%	13.96%	12.91%
ANUP	65 Neutral	₹35.54B	29.59	―	0.77%	28.24%	-0.43%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
QUESS	55 Neutral	₹31.06B	50.21	―	4.70%	-16.43%	-75.38%
ITDC	53 Neutral	₹45.35B	62.78	―	0.50%	6.56%	4.21%
TARC	46 Neutral	₹45.15B	-46.56	―	―	863.34%	48.32%