ENGINERSIN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | ENGINERSIN | Market Cap | 14,160 Cr. | Current Price | 252 ₹ | High / Low | 265 ₹ |
| Stock P/E | 19.4 | Book Value | 47.9 ₹ | Dividend Yield | 1.59 % | ROCE | 24.4 % |
| ROE | 18.4 % | Face Value | 5.00 ₹ | DMA 50 | 216 ₹ | DMA 200 | 203 ₹ |
| Chg in FII Hold | 1.92 % | Chg in DII Hold | -1.19 % | PAT Qtr | 302 Cr. | PAT Prev Qtr | 115 Cr. |
| RSI | 70.3 | MACD | 14.3 | Volume | 50,78,045 | Avg Vol 1Wk | 72,43,063 |
| Low price | 164 ₹ | High price | 265 ₹ | PEG Ratio | 1.92 | Debt to equity | 0.01 |
| 52w Index | 87.5 % | Qtr Profit Var | 242 % | EPS | 13.0 ₹ | Industry PE | 18.5 |
Financials & Valuation:
ENGINERSIN demonstrates strong fundamentals. ROCE (24.4%) and ROE (18.4%) highlight efficient capital utilization. EPS of 13.0 ₹ supports profitability, and quarterly PAT surged to 302 Cr. from 115 Cr., reflecting robust earnings momentum. Debt-to-equity is extremely low at 0.01, ensuring financial resilience.
Valuation Indicators:
P/E ratio of 19.4 is slightly above the industry average (18.5), but still within a reasonable range. Book Value of 47.9 ₹ compared to current price of 252 ₹ shows premium pricing, justified by strong returns. PEG ratio of 1.92 suggests moderate valuation relative to growth. Dividend yield of 1.59% provides income support.
Business Model & Health:
ENGINERSIN, a government-linked engineering consultancy, benefits from infrastructure and energy projects. Strong profitability, low leverage, and rising FII holdings (+1.92%) reinforce overall health, though DII holdings declined (-1.19%).
Entry Zone & Holding Guidance:
Technically, support lies around 240–250 ₹, with resistance near 260–265 ₹. Entry near support levels offers favorable risk-reward. Long-term holding is recommended given strong fundamentals and industry demand, though overbought RSI (70.3) suggests caution for short-term traders.
Positive
- Strong ROCE (24.4%) and ROE (18.4%).
- EPS of 13.0 ₹ with robust PAT growth.
- Very low debt-to-equity (0.01).
- FII holdings increased (+1.92%), showing foreign confidence.
Limitation
- RSI (70.3) indicates overbought conditions.
- P/E ratio (19.4) slightly above industry average (18.5).
- DII holdings declined (-1.19%).
- Premium valuation compared to book value.
Company Negative News
- Decline in DII holdings.
- Overbought technical indicators may trigger profit booking.
Company Positive News
- Quarterly PAT surged to 302 Cr. from 115 Cr.
- FII holdings increased, reflecting foreign investor confidence.
- Strong demand outlook in infrastructure and energy projects.
Industry
- Engineering and infrastructure sector benefits from government spending and industrial expansion.
- Industry PE (18.5) supports fair valuation benchmarks.
- Long-term growth supported by capital projects and consultancy demand.
Conclusion
ENGINERSIN is fundamentally strong with efficient capital use, low debt, and robust earnings growth. Entry near 240–250 ₹ offers a favorable setup. Long-term investors can hold confidently, supported by industry growth, while short-term traders should be cautious due to overbought RSI levels.
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