Check Before You Invest : Engineers India Ltd

Snapshot

Q.1 Which industry/sub-sector does Engineers India Ltd belong to?

Engineers India Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.

Q.2 Is Engineers India Ltd a good quality company?

Engineers India Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Engineers India Ltd undervalued or overvalued?

Engineers India Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Engineers India Ltd a good buy now?

Engineers India Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Engineers India Ltd?

Engineers India Ltd revenue growth is -6.3% for FY-2025, which is below its 5-year CAGR of -1.12%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Engineers India Ltd?

Engineers India Ltd Return on capital employed is 25.21% for FY-2025, which is above its 5-year historical median of 21.98%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of Engineers India Ltd?

Engineers India Ltd Return on Asset is 9.53%, which is above its 5-year historical median of 7.72%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Engineers India Ltd?

Engineers India Ltd Return on equity is 18.87% for FY-2025, which is above its 5-year historical median of 16.98%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Engineers India Ltd?

Engineers India Ltd Cash conversion cycle is -23 days, below its 5-year historical median of -1 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.62	0.62
ROE	18.87	16.98
ROCE	25.21	21.98
Cash Conversion Cycle	-23 days	-1 days

Q.6 Gross Profit margin of Engineers India Ltd?

Engineers India Ltd Gross profit margin which is the profit after deduction of direct costs, is 21.7% for FY-2025, which is above its 5-year median of 16.4%, indicating increasing margins.

Q.7 Operating Profit Margin of Engineers India Ltd?

Engineers India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.49% for FY-2025, which is above its 5-year median of 10.98% indicating increasing margins.

Q.8 Net Profit Margin of Engineers India Ltd?

Engineers India Ltd Net Profit Margin is 15.36% for FY-2025, is above with its 5-year median of 11.04%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	21.7	16.4
Operating Profit Margin	14.49	10.98
Net Profit Margin	15.36	11.04

Q.9 Debt to Equity ratio of Engineers India Ltd?

Engineers India Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.39, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Engineers India Ltd?

Engineers India Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Engineers India Ltd?

Promoters hold 51.32% of the Engineers India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Engineers India Ltd vs industry peers?

Engineers India Ltd revenue CAGR is -1.12%, compared to the industry median CAGR of 9.45%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-6.3	9.5
Gross Profit Growth	29.9	14.9
Operating Profit Growth	69.5	11.1
Net Profit Growth	30.3	18.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.62	0.68
ROE	18.87	8.34
ROCE	25.21	11.34
Cash Conversion Cycle (days)	-22.82	57

Valuation & price assessment

Q.1 Stock return of Engineers India Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 11.7% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	11.7%	28.8%	38.7%	50.4%

Q.3 Valuation ratios of Engineers India Ltd vs historical?

The current P/E is similar that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	20.04	19.14	21.62
Price to Book	4.89	3.62	1.75
Price to Sales	3.71	2.56	1.50
EV to EBITDA	13.37	11.85	11.53

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