The Anup Engineering Ltd Q1 FY26 – Heat Exchangers on Export Steroids, 91% Growth Since FY22, Still Trading at 7.5x Book

1. At a Glance

Welcome to The Anup Engineering Limited, the desi version of an industrial blacksmith who got tired of making chulhas and graduated to heat exchangers, reactors, and pressure vessels. After splitting from Arvind Ltd in 2018, the company has gone from “Arvind’s side hustle” to “Heat Exchanger ka Shahenshah.” With exports now 52% of sales versus a measly 10% in FY22, this Gujarati machinery-maker has basically turned into an NRI—it earns abroad but lives in Ahmedabad. Market cap ₹4,629 Cr, P/E a spicy 38x, and debt so small (₹32 Cr) that it can be paid off by selling one Reliance order’s scrap steel.

2. Introduction

Picture this: a factory in Ahmedabad so huge that each heat exchanger weighs as much as three Shaqs standing on an oil tanker. Anup Engineering makes the heavy metal backbone of the chemical, oil & gas, and petrochem industries. Their equipment doesn’t just sit pretty—it survives heat, corrosion, and chemical tantrums worse than your relatives during Diwali politics debates.

What’s really juicy? Their revenue doubled in two years (FY22 to FY24), thanks to demand from export markets where foreign clients apparently realized that India can build more than just IT code and chai memes. Export sales grew 700% in that period—basically a rags-to-riches arc like Virat Kohli’s hairline but in reverse.

And let’s not forget the order book: ₹883 Cr pending, up 67% from FY22. Exports form 78% of that. Add to it a new plant in Kheda with 1,000 MT handling capacity, plus a partnership with Graham Corp USA, and suddenly Anup looks less like a “local fabricator” and more like a “global engineering Tinder date.”

But wait—the stock trades at 7.5x book and 38x earnings. You know what that means? You’re basically paying Gucci prices for a factory that bends steel.

Question for you, dear reader: Do you think Indian engineering exporters deserve tech-like P/E multiples? Or is this just Mr. Market binge-watching “Make in India” ads?

3. Business Model – WTF Do They Even Do?

Anup Engineering builds industrial hardware you and I will never see unless we sneak into a petrochemical refinery in a reflective jacket. Heat exchangers (72% of revenue) are their bread and butter—these are giant metallic lungs that transfer heat from one fluid to another without mixing them. Reactors, towers, and vessels (together ~24%) are the Bollywood side cast. Centrifuges and others (4%) are like item songs—low revenue, but fun for diversification.

Customers? Big boys like Reliance, Indian Oil, GAIL, Toyo, and Nayara. Essentially, anyone who deals with hydrocarbons and chemicals. If your product can blow up a city block, chances are Anup made part of the equipment.

Revenue geography has flipped: domestic was 90% in FY22, now just 48%. Exports are 52%, which is wild. This is like a cricketer who used to only play Ranji Trophy but suddenly became IPL MVP. The margin kicker? Export clients usually pay better, plus dollar billing makes every heat exchanger look shinier.

Still, let’s not over-romanticize. This is a fabrication business—capital heavy, order-book driven, subject to raw material price swings. No SaaS-like predictability here. Think more like “make-to-order shaadi ka lehenga”—only fancier, heavier, and 10,000x more expensive.

4. Financials Overview

Annualised EPS = ₹13.1 × 4 = ₹52.4 → At CMP ₹2,311, P/E ~ 44x. Screener’s 38x is slightly off because it smooths TTM.

Commentary:
YoY, revenue and profits look healthy—like someone who hit the gym. But