ENGINERSIN - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.6

📊 Core Financials & Profitability

Quarterly PAT Surge: Jumped from ₹109 Cr to ₹280 Cr — a whopping 142% growth, signaling strong operational performance or one-time gain.

ROCE (25.4%) & ROE (23.6%): Excellent capital efficiency — top quartile within industry peers.

Debt-to-Equity (0.01): Virtually debt-free — implies financial strength and flexibility.

EPS (₹10.3): Reasonable earnings given the price — supports long-term return generation.

💵 Valuation Overview

Metric Value Interpretation

P/E Ratio 21.0 Slightly undervalued vs Industry PE (23.8)

P/B Ratio ~4.57 Fairly priced given ROE & growth

PEG Ratio 0.34 Low — indicates undervaluation relative to growth

Intrinsic Value — Likely near ₹240–₹260 based on cash flows

Overall, valuation appears attractive, especially considering recent earnings momentum and PEG multiple.

🏗️ Business Model & Competitive Advantage

Sector: Engineering services — key player in consultancy, turnkey solutions, and technical support for infrastructure, oil & gas, and industrial development.

Competitive Edge

Government-backed clientele ensures stable project flow.

Asset-light model combined with robust service margins.

Institutional sentiment positive

FII ↑ 0.38%

DII ↑ 3.54% — strong domestic confidence

📈 Technicals & Entry Strategy

Current Price: ₹217

DMA 50: ₹226 | DMA 200: ₹203

RSI (35.0): Oversold zone — potential bounce

MACD (-1.17): Bearish crossover — wait for confirmation

Volume Trend: Above average — active interest

💰 Suggested Entry Zone: ₹200–₹210 Ideal for accumulation, especially near 200-DMA with RSI signaling a reversal opportunity.

🧭 Long-Term Guidance

With strong fundamentals, minimal debt, and attractive valuation ratios, Engineers India appears well-suited for a long-term hold. Watch margin trends, order book growth, and execution efficiency. Long-term prospects remain promising, especially with government infra push and capex cycle revival.

Let me know if you'd like a peer comparison or cash flow analysis next — happy to dive deeper!

Edit in a page