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ENGINERSIN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | ENGINERSIN | Market Cap | 9,477 Cr. | Current Price | 169 ₹ | High / Low | 255 ₹ |
| Stock P/E | 18.4 | Book Value | 47.9 ₹ | Dividend Yield | 2.37 % | ROCE | 24.4 % |
| ROE | 18.4 % | Face Value | 5.00 ₹ | DMA 50 | 190 ₹ | DMA 200 | 198 ₹ |
| Chg in FII Hold | 0.74 % | Chg in DII Hold | -0.36 % | PAT Qtr | 115 Cr. | PAT Prev Qtr | 70.1 Cr. |
| RSI | 32.6 | MACD | -7.90 | Volume | 16,35,352 | Avg Vol 1Wk | 27,00,184 |
| Low price | 142 ₹ | High price | 255 ₹ | PEG Ratio | 1.82 | Debt to equity | 0.01 |
| 52w Index | 23.4 % | Qtr Profit Var | 45.2 % | EPS | 9.19 ₹ | Industry PE | 16.9 |
📊 Core Financials
- Revenue growth: Strong, PAT at 115 Cr vs 70.1 Cr in previous quarter, showing 45.2 % improvement.
- Profit margins: Healthy, EPS at 9.19 ₹ indicates consistent profitability.
- Debt ratios: Excellent, debt-to-equity at 0.01 shows negligible leverage.
- Cash flows: Supported by strong profitability and minimal debt burden.
- Return metrics: ROCE 24.4 %, ROE 18.4 % — solid efficiency and shareholder returns.
💹 Valuation Indicators
- P/E ratio: 18.4, slightly above industry average (16.9), fairly valued.
- P/B ratio: Current Price / Book Value ≈ 3.5, reasonable relative to assets.
- PEG ratio: 1.82, suggests valuation is moderately stretched relative to growth.
- Intrinsic value: Fairly valued, supported by strong returns and low debt.
🏢 Business Model & Competitive Advantage
- Operates in engineering consultancy and project management services.
- Strong government and PSU contracts provide stable revenue streams.
- Competitive advantage through expertise in infrastructure and energy projects.
📈 Entry Zone & Long-Term Guidance
- Entry zone: Attractive near 150–160 ₹ levels, close to 52-week low support.
- Long-term holding: Favorable due to strong ROE/ROCE, low debt, and consistent profitability; suitable for patient investors.
Positive
- Strong ROCE (24.4 %) and ROE (18.4 %).
- Negligible debt-to-equity ratio (0.01).
- Quarterly PAT growth of 45.2 %.
- Dividend yield at 2.37 % provides steady income.
- FII holdings increased (+0.74 %).
Limitation
- P/E ratio slightly above industry average, limiting valuation comfort.
- PEG ratio at 1.82 indicates stretched valuation compared to growth.
- Stock trading below DMA 50 and DMA 200, showing weak momentum.
Company Negative News
- DII holdings decreased (-0.36 %).
- Technical indicators weak: RSI at 32.6 (oversold), MACD negative.
- Stock price corrected significantly from 52-week high of 255 ₹.
Company Positive News
- Quarterly PAT improved significantly (115 Cr vs 70.1 Cr).
- Strong fundamentals with high ROE and ROCE.
- Low debt ensures financial stability.
Industry
- Engineering and consultancy sector supported by infrastructure and energy investments.
- Industry PE at 16.9, close to ENGINERSIN’s P/E, suggesting fair valuation.
Conclusion
- ENGINERSIN demonstrates strong fundamentals with consistent profitability and negligible debt.
- Valuation is fair compared to industry peers, though PEG ratio indicates moderate stretch.
- Entry advisable near lower support levels; long-term holding recommended for investors seeking exposure to infrastructure and consultancy growth.
Would you like me to also prepare a peer comparison HTML snapshot against companies like NBCC and RITES to highlight ENGINERSIN’s relative valuation and strengths?