ENGINERSIN - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:15 pm
Back to Fundamental ListFundamental Rating: 4.3
| Stock Code | ENGINERSIN | Market Cap | 11,190 Cr. | Current Price | 199 ₹ | High / Low | 255 ₹ |
| Stock P/E | 21.6 | Book Value | 47.9 ₹ | Dividend Yield | 2.02 % | ROCE | 24.4 % |
| ROE | 18.4 % | Face Value | 5.00 ₹ | DMA 50 | 198 ₹ | DMA 200 | 201 ₹ |
| Chg in FII Hold | -0.13 % | Chg in DII Hold | -0.56 % | PAT Qtr | 115 Cr. | PAT Prev Qtr | 70.1 Cr. |
| RSI | 47.1 | MACD | -1.30 | Volume | 7,69,316 | Avg Vol 1Wk | 10,81,459 |
| Low price | 142 ₹ | High price | 255 ₹ | PEG Ratio | 2.14 | Debt to equity | 0.01 |
| 52w Index | 50.3 % | Qtr Profit Var | 45.2 % | EPS | 9.19 ₹ | Industry PE | 18.8 |
📊 Financials Overview:
- Revenue & Profit Growth: PAT surged from 70.1 Cr. to 115 Cr. (↑ 45.2%), strong quarterly momentum.
- Margins: ROCE at 24.4% and ROE at 18.4% highlight efficient capital utilization.
- Debt Ratios: Debt-to-equity at 0.01 indicates virtually debt-free operations.
- Cash Flows: Healthy earnings with a solid dividend yield of 2.02% supporting shareholder returns.
💹 Valuation Indicators:
- P/E Ratio: 21.6 vs Industry PE of 18.8 → slightly overvalued but within reasonable range.
- P/B Ratio: Current Price / Book Value ≈ 4.15, moderate compared to peers.
- PEG Ratio: 2.14 → valuation stretched relative to growth, but supported by strong earnings momentum.
- Intrinsic Value: Fair value estimated near 175–185 ₹; current price (199 ₹) slightly above comfort zone.
🏭 Business Model & Competitive Advantage:
- Engineers India Ltd. operates in engineering consultancy and EPC services, primarily for oil & gas and infrastructure.
- Strong government backing and long-standing industry presence provide stability.
- Debt-free balance sheet allows flexibility for expansion and project execution.
📈 Entry Zone & Long-Term Guidance:
- Entry Zone: Attractive accumulation range between 175–185 ₹.
- Long-Term Holding: Strong fundamentals and dividend yield make it suitable for long-term investors; valuation premium requires cautious entry.
Positive
- High ROCE and ROE reflect strong operational efficiency.
- Debt-free balance sheet enhances financial resilience.
- Quarterly PAT growth of 45.2% shows robust earnings momentum.
- Dividend yield of 2.02% adds income appeal.
Limitation
- P/E slightly above industry average, indicating mild overvaluation.
- PEG ratio above 2 suggests valuation stretched relative to growth.
- FII and DII holdings declined (-0.13% and -0.56%), showing reduced institutional confidence.
Company Negative News
- No major negative news reported; institutional selling is a minor concern.
Company Positive News
- Strong quarterly PAT growth of 45.2% highlights operational strength.
- Dividend yield of 2.02% supports investor confidence.
Industry
- Industry PE at 18.8, slightly lower than Engineers India’s 21.6.
- Sector supported by infrastructure development and government-backed projects in oil & gas.
Conclusion
⚖️ Engineers India Ltd. demonstrates strong profitability, efficient capital use, and a debt-free balance sheet. While valuations are slightly stretched compared to industry averages, the company’s dividend yield and earnings growth make it attractive for long-term investors. Accumulation is recommended near 175–185 ₹ for better margin of safety, while current levels require cautious entry given RSI at 47.1 and weak MACD momentum.
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