IIFL Securities's Stock Pick Today: Buy Engineers India with Target Rs 269

IIFL Securities has recommended buying Engineers India shares with a target price of Rs 269, indicating a potential upside of around 16.8% from the current market price of Rs 230.15. The brokerage firm believes the company's strong order book, low leverage, and diversified operations position it well for future growth. Engineers India is a leading provider of engineering, procurement, and construction services in the hydrocarbon sector, with a presence in over 50 countries.

About Engineers India:

Engineers India Limited (EIL) is an Indian government-owned engineering consultancy company headquartered in New Delhi. It is the country's leading design and engineering company for the hydrocarbon sector. EIL offers a wide range of services, including techno-economic feasibility studies, FEED, detailed engineering, project management, procurement, and construction supervision. The company has a global footprint and has worked on numerous projects in over 70 countries. EIL is listed on the National Stock Exchange of India and is a constituent of the Nifty 50 index.

52 Week Price Trend:

Engineers India Limited (EIL), a public sector undertaking under the Ministry of Petroleum and Natural Gas, is currently trading at Rs 230.15, significantly below its 52-week high of Rs 273.9. However, it has witnessed a remarkable recovery from its 52-week low of Rs 70.05. EIL is primarily engaged in providing engineering, procurement, construction, and project management services for the hydrocarbon sector and has a strong presence in the oil and gas industry. The company's recent performance may be influenced by factors such as the global energy market, project execution timelines, and the competitive landscape in its industry.

Stratzy's MOST Analysis:

ENGINEERSIN has been assigned a BB rating by Stratzy's MOST framework, indicating medium fundamental risks. This assessment considers four pillars: Management, Outlook, Safety, and Trend. The rating suggests that the company's management is proficient, its future prospects are promising, it maintains a sound financial position, and its industry trends are favorable. Overall, ENGINEERSIN's fundamentals are deemed solid, but investors should remain aware of potential risks before investing.

Company's Fundamentals:

Engineers India (NSE: ENGINEERSIN) is a leading engineering consultancy and construction company in India. Its stock PE ratio of 23.38 indicates that investors are willing to pay 23.38 times the company's annual earnings per share for its stock. The PB ratio of 5.62 suggests that the market value of the company's assets is 5.62 times its book value. The dividend yield of 1.39% represents the annual dividend per share as a percentage of the current market price, indicating the income return that investors can expect from the stock. These metrics provide insights into the company's valuation, profitability, and income potential, helping investors make informed decisions about investing in Engineers India.

Fundamental and Technical information provided in this blog were last updated on 26 Apr, 2024

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