EIL, established in 1965, has recently attracted considerable interest because of a substantial increase in its stock price. In this comprehensive analysis, we will delve into the key details about Engineers India Limited Share Price and analyse its share price performance in-depth.
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About Engineers India Limited Share price
Engineers India Limited (EIL) is a prominent player in the Indian business landscape, operating within the Services sector as a Mid Cap company. EIL has established a strong reputation over the years, thanks to its nearly debt-free financial position, robust order book, and impressive track record in project execution, all while being valued at Rs 8,164 crore in the market. The company’s core business areas encompass a wide spectrum, including engineering consultancy and turnkey projects.
Engineers India Limited Share price Recent Performance
EIL has demonstrated outstanding performance in the recent past, especially in the second quarter of FY24. A consolidated net profit of Rs 127.5 crore was disclosed by the company, a 69.5% increase since last year. The impressive results exceeded analyst predictions, surpassing Bloomberg’s projected net profit of Rs 112.8 crore.These robust financial results have acted as a catalyst for a surge in EIL’s share price.
The company’s quarterly performance metrics are noteworthy. EIL saw a 2.2 times increase in EBITDA, demonstrating significant gains despite a slight 0.4% decrease in revenue.More importantly, EIL’s margins witnessed a substantial improvement, reaching 12.48%, up from 5.66% as estimated by Bloomberg. This unexpected monetary display has converted into major areas of strength at some cost presentation. EIL’s share price rose by 14.45% since last one month. This stands in stark contrast to the NSE Nifty 50, which saw a meagre 0.05% advance. In addition, the share price of EIL has increased by an astounding 85.44% so far this year.
Analyst Recommendations and Price Target for Engineers India Limited Share price
When it comes to EIL’s stock, analysts are generally in agreement. Out of the nine analysts who follow the company, three advise a “hold,” five keep a “buy” rating, and one suggests a “sell.” The market’s mixed feelings are reflected in the diversity of recommendations. The average 12-month consensus price target implies an upside of 10%, indicating a certain degree of confidence in the company’s future prospects.
ICICI Direct, a well-regarded financial institution, has recommended purchasing Engineers India and set a target price of Rs 160. Engineers India’s current market price at Rs 132.85, the analyst expects to reach this target within one year. This proposal further highlights the positive feeling encompassing the organization’s stock.
EIL’S Collaborations and Expansion
Late essential coordinated efforts and development drives by EIL show the organization’s obligation to development and advancement. One such notable collaboration is with NTPC, one of India’s leading power companies. This Memorandum of Understanding (MoU) aims to facilitate collaboration on a variety of clean energy projects, including Carbon Capture, Utilisation, and Storage (CCUS), green fuel, green chemicals, green fertilisers, and others.
The larger objective of making the transition to a greener and more sustainable future is perfectly aligned with NTPC’s ambitious goal of reaching a 60 GW renewable energy capacity by 2032.
Furthermore, EIL and Jindal Steel and Power Limited (JSPL) have established a significant agreement concerning a Direct Reduced Iron (DRI) plant situated in Angul, Odisha. This undertaking encompasses not only the Direct Reduced Iron (DRI) plant but also its interconnected facilities. By leveraging their respective expertise and resources, these two esteemed companies aim to optimise the engineering aspects of the DRI plant and ensure its seamless operation.
The specific terms of the contract cannot be revealed because of confidentiality, but it is anticipated that this collaboration will last about 20 months. In this period, thorough basic engineering and detailed engineering services will be conducted, covering the project’s design, planning, and implementation. The contract’s value is estimated at ₹1550 lakhs, underscoring the commitment of both JSPL and EIL to drive innovation and growth in the iron and steel sector.
Engineers India Limited Share Price Performance
Engineers India’s closing price on the final trading day was ₹146.40, having opened at ₹144.0. During today’s trading session EIL made a high of ₹149.40 and a low of ₹142.50. The company’s total market capitalization of ₹8164 crore. The stock has traded at ₹70.05. Its 52-week low is at ₹70.05. At the end of the day, there were 1,23,42,536 shares traded, with a total traded value of 181 Cr.
EIL’s Clarification on Share Price Surge
In response to the sharp increase in the value of its shares, Engineers India Limited has confirmed that there are no undisclosed or price-sensitive matters awaiting disclosure. Additionally, there are no imminent announcements or corporate actions that could influence the company’s share price or trading volume.The increase in the volume of the company’s stock is entirely market-driven. Due to its solid fundamentals and promising growth, EIL’s stock has continuously been in high demand on the market.
EIL’s Strategic Position
For more than 55 years, Engineers India Limited has been a significant participant in the national hydrocarbons market. As India’s leading Engineering Consultancy & EPC – Navratna firm, the company boasts a significant track record across the entire oil & gas value chain. Furthermore, it has made a mark globally by executing landmark projects around the world. EIL is managed by the Ministry of Petroleum and Natural Gas (MoPNG) as a Public Sector Undertaking (PSU), emphasising the company’s strategic importance in the industry.
Till December 31, 2022, EIL’s total order book position stood at a formidable Rs 7,866 crore. A notable feature of this order book is its diversified composition, with 57% stemming from the consultancy segment and 43% from the turnkey segment. The company is currently engaged in feasibility projects across multiple hydrocarbon fuels, pipeline infrastructure, and renewable fuels such as hydrogen, ethanol, and other biofuels.
EIL’s diversified portfolio sets it up for success in light of the expected rise in capital spending in these sectors. ICICI Securities analysts are positive about EIL’s prospects and foresee its ability to secure project orders strengthening as the capital expenditure cycle picks up pace. Supported by a robust order book and a strong cash-rich balance sheet. This indicates their confidence in EIL’s potential for further growth and expansion.
Investment Rationale of Engineers India Limited Share price
The investment rationale for Engineers India Limited is grounded in its strong capabilities, demonstrated track record in project execution, healthy order book, significant order inflow opportunities, and a recovery in the high-margin consultancy business. EIL’s debt-free balance sheet strengthens and stabilises its financial position. Analysts project that the company’s financial performance will significantly improve over FY23-25E compared to the preceding period from FY20-23.
Promoter and Institutional Holdings
As of September 30, 2023, promoters held a 51.32% stake in Engineers India Limited,Retail and other investors are 23.62%, Mutual funds are 9.97%, while Foreign Institutional Investors (FIIs) owned 7.88% and Domestic Institutional Investors (DIIs) held 7.21%. This stable and significant promoter holding reinforces a sense of confidence in the company’s long-term prospects. Domestic and foreign institutional holdings reflect external confidence in EIL’s strategic direction and potential for growth.
Engineers India Limited Share price: Conclusion
Overall Engineers India Limited is expected to experience significant growth and expansion in the coming years. Its recent performance metrics, strategic partnerships, and strong market presence reflect a company with a promising future. The flood in its portion value, which is upheld by solid financials, a hearty request book, and visionary joint efforts, demonstrates that financial backers are positive about the organisation ‘s true capacity. EIL’s commitment to innovation, expansion, and contributing to a greener, more sustainable future places it in a favourable position within the industry.
As the company continues to execute and expand its projects, it is likely to remain an interesting and potentially rewarding prospect for investors and stakeholders alike. The positive trajectory of Engineers India Limited’s share price and its strategic position in the industry emphasise the potential for continued success and growth in the foreseeable future.
Disclaimer: The information in this “Stock Profile” blog post is for informational purposes only. It is not financial advice. Always consult a qualified expert before making investment decisions.