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Engineers India Ltd. Stock Analysis

Small Cap
Evaluated by 8198 users | BSE: 532178 | NSE: ENGINERSIN |
Engineering
Engineers India (EIL), incorporated in 1965, is engaged in the business of providing engineering and related technical services for petroleum refineries and other industrial projects. The company has broadened its activities in other areas such as pipelines, petrochemicals, oil and gas...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Engineers India Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 41.43%37.57%29.35%19.49%10.51%10.28%11.88%14.85%16.13%19.28%
Value Creation Index 1.411.131.350.56-0.16-0.18-0.050.190.290.54
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2,6533,8982,4521,8841,7191,5081,4421,7932,4453,204
Y-o-Y Gr. Rt.-47%-37.1%-23.2%-8.8%-12.3%-4.4%24.3%36.4%31%
Adjusted EPS (Rs.) 7.829.128.886.783.94.044.825.915.777.01
Y-o-Y Gr. Rt.-16.6%-2.6%-23.7%-42.5%3.6%19.3%22.6%-2.4%21.5%
Book Value per Share (Rs.) 21.427.3633.236.5338.1140.9141.1935.8936.0237.12
Adjusted Net Profit 527615598457263272325373365443
Net Op. Cash Flow (Rs. Cr.) 49310734483.159.686.7231587545372
Debt to Cash Flow from Ops 0000000000
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Engineers India Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 2.1%13.3%30.5%31%
Adjusted EPS -1.2%12.4%13.3%21.5%
Book Value per Share 6.3-0.5-3.43.1
Share Price -4.2% -7.6% -26.2% -29.8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 41.2137.4229.3119.4510.4510.2311.7514.816.0419.17
Operating Profit Margin (%) 24.5518.3723.9520.4212.739.1819.3222.9214.8414.54
Net Profit Margin (%) 19.8615.7724.3924.2515.2918.0522.5420.8114.9113.82
Debt to Equity 0000000000
Working Capital Days 207171281326326309300304254208
Cash Conversion Cycle -3-25-53-1953122272824
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 51.50%
Institutions 27.41%
Non-Institutions 21.10%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Engineers India Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Engineers India Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Engineers India Ltd.'s performance infers:

Engineers India Ltd. earnings have grown by 12.4%, whereas share price has depreciated -7.6% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Engineers India Ltd. share prices over the last 10 years. Here is what we found out:

Engineers India Ltd. share price has depreciated -7.6% annually over the past ten years.

Engineers India (EIL), incorporated in 1965, is engaged in the business of providing engineering and related technical services for petroleum refineries and other industrial projects. The company has broadened its activities in other areas such as pipelines, petrochemicals, oil and gas processing, offshore structures and platforms, fertilizers, metallurgy and power.

EIL has emerged as Asia's leading design and engineering company that offers complete range of project services. In order to

Engineers India (EIL), incorporated in 1965, is engaged in the business of providing engineering and related technical services for petroleum refineries and other industrial projects. The company has broadened its activities in other areas such as pipelines, petrochemicals, oil and gas processing, offshore structures and platforms, fertilizers, metallurgy and power.

EIL has emerged as Asia's leading design and engineering company that offers complete range of project services. In order to offer its services, EIL has explored new areas such as highways and bridges, IT, airports, mass rapid transport systems, ports and terminals, power projects, non-conventional / renewable energy sources, specialist materials and maintenance services, intelligent buildings, water and urban development projects.

The company has received ISO 9001:2000 certifications for quality management. Headquartered in New Delhi, company has branches offices located at Mumbai, Kolkata, Chennai and Vadodara. Internationally company’s offices are located at London, Abu Dhabi, Kuwait, Qatar, Malaysia and Australia.

EIL operates a wholly-owned subsidiary namely, EIL Asia Pacific Sdn Bhd in Malaysia and Certification Engineers International that is engaged in the business of undertaking independent certification and third party inspection assignments.

The company has formed strategic alliances with various companies such as UK-based VAI Industries for iron and steel plants; Deutsche Montan Technologies GmbH of Germany for coke oven-by product plants/gas cleaning systems; IOCL (R&D) for technology and catalyst for DHT and hydrotreater projects in India; GAIL India for overseas projects in LPG extraction and Pipeline transfer and many more.

EIL has set up 50:50 joint venture company with Tata Projects viz., TEIL Projects for undertaking EPC projects for hydrocarbon, power and other sectors has already been incorporated. For executing EPC projects in UAE, the company has formed a JV with Tecnimont S.p.A., Italy.

EIL is capable to provide services from concept to commissioning in petroleum , refining ,petrochemicals, pipelines, offshore oil and gas, onshore oil and gas, terminals and storages, mining and metallurgy, infrastructure sector and its association with clients extend beyond the commissioning of their plants through monitoring the operation of each plant and accumulating feedback on its performance. EIL provide its services in the following modes:

a) Project Implementation Services (EPCM) such as Conceptual Studies, Feasibility Studies, Detailed Project Reports, FEED Package, Basic Design Engineering Package (BDEP) Project Management, Planning & Scheduling, Cost Engineering, Process Design, Detailed Engineering, Procurement Services, Construction Management & Supervision, Commissioning and plant start‐up assistance etc.

b) Project Management Consultancy (PMC) Services

c) Specialist Services such as Heat & Mass Transfer Equipment Design, Engineering & Technology Development and Design, Environmental Engineering, Information Technology Services, Specialist Materials and Maintenance Services, Energy Conservation Services, Plant Operations & Safety including HAZOP Studies, Safety Integrity Levels (SIL) studies and Risk Analysis, Yield and Energy and Optimisation Studies.

d) Engineering, Procurement & Construction (EPC) / Lumpsum Turnkey (LSTK) Contracts

e) Open Book converted LSTK Projects

Engineers India Limited signed the Memorandum of Understanding (MoU) for the year 2011-2012 with the Ministry of Petroleum & Natural Gas.The MoU targets higher turnover and gross margin along with thrust on holistic growth encompassing Customer Satisfaction, HRD, R&D, Sustainable Development and CSR initiatives.

Milestones

  • 1965- Engineers India (EIL) was incorporated.
  • 1967- EIL became a wholly-owned government company.
  • 1969- The company diversified its business activities into petrochemicals.
  • 1970- EIL developed heat and mass transfer design and computer services departments.
  • 1971- It formed ocean engineering department.
  • 1972- The company undertook its first metallurgical project.
  • 1973- It established a procurement office in London. The company forayed in fertilizer and pipeline projects.
  • 1974- The company received its first overseas assignment. EIL developed in-house process design/engineering, technology development.
  • 1975- It installed a third generation computer system.
  • 1976- The company established training division.
  • 1977-  The company received its first oil and gas processing project.
  • 1975-1980- The company enhanced its skill in the areas of process plant services such as operations, safety, materials, environmental engineering.
  • 1981- The company started using computers at construction sites. The same year company set up procurement office in Tokyo.
  • 1989- The company set up R&D Centre at Gurgaon.
  • 1992- EIL established engineering office in Qatar. The company entered in a joint-venture with AMEC, UK.
  • 1993- It set up regional offices in Chennai and Vadodara.
  • 1994-  The company incorporated its wholly owned subsidiary namely EIL Asia Pacific Sdn. Bhd. EIL received ISO 9001 certification for its quality management.
  • 1995- The company formed wholly owned subsidiary namely Certification Engineers International.
  • 1998- The company expanded its business activities by venturing into LNG and Refinery Residue based Power Plants.
  • 1999- EIL commenced activities in area of turnkey contracting-ventured in area of offshore platforms and offsite automation.
  • 2000- EIL’s MOU received highest rating amongst all PSUs under the Ministry of Petroleum & Natural Gas.
  • 2001- The company diversified its business activities in various new infrastructure and other areas. Company’s performance was improved to 1.017(2000-01) and was ranked as no.1 amongst the PSEs by the Ministry of Petroleum & Natural Gas.
  • 2002-EIL received prestigious MNW Platform from ONGC on Lumpsum Turnkey basis.

Awards

  • EIL received Amity Award for Best Engineering Consultancy Services 2008
  • The company received a shield and a certificate from Abu Dhabi Company as recognition for its Onshore Oil Operations (ADCO) on for successfully completing 5 Million man-hours without Loss Time incident at their Tank Farm Upgrade Facilities Project, Jebel Dhanna.
  • It received “Certificate of Recognition” from Hindalco as mark of recognition on achieving a landmark of 1.16 million accident-free man-hours at Muri Alumina Brownfield Expansion Project.  
  • First prize by the Institute of Cost and Works Accountants of India (ICWAI) for excellence in Cost Management Practices for the year 2010 in the category of Public - Service Sector - Large.
  • Sarvashreshtha Suraksha Puraskar (Golden Shield) from National Safety Council of India for executing LLDPE/HDPE (Swing Unit) of Indian Oil Corporation Ltd. (IOCL) Naphtha Cracker Project at Panipat Haryana. 
  • Safety certificate from IOCL for achieving 5.0 Million LTA (Lost Time Accident) free Man-hours for their DHDT Project at Bongaigaon on August 1, 2011.
  • Project Management Institute (PMI) Award-2010 for Bina Refinery Project.
  • Engineers India was awarded SARVASHRESHTHA SURAKSHA PURASKAR (Golden Shield) from National Safety Council of India.
  • Engineers India was awarded first prize by the Institute of Cost and Works Accountants of India (ICWAI) for excellence in Cost Management Practices for the year 2010 in the category of “Public - Service Sector - Large”.
  • Engineers India was awarded PSE Excellence Award 2011 by Indian Chamber of Commerce (ICC) and Dept. of Public Enterprises (Govt. of India) during the 2nd PSU Summit on “Indian Public Sector Agenda @2020”,
  • "2012
    - Engineers India Ltd entered into production sharing contract with the GoI for exploration blocks.
  • 2011
    - Established the joint venture company Jabal EILIOT Company Limited with Jabal Dhahran Company Limited and IOT Infrastructure & Energy Services Limited in the KSA.
    - Commenced work in the nuclear energy segment.
    - Commenced work in the solar energy segment.
  • PETROTECH-2012 Special Technical Award in Project Management Category for Guru Gobind Singh Refinery Project, Bathinda of HMEL
    PETROTECH-2012 Special Technical Award in Greening of Oil and Gas Business Category for India's first Indigenous DHDT Unit jointly developed with IOCL and implemented in Bongaigaon Refinery of IOCL
    PETROTECH-2012 Life Time Achievement Award in the `Research & Development¿ category to Dr. S J Chopra, the officiating Chairman & Managing director of EIL (January 2000-January 2001).
    HelpAge India Bronze Plate Award for the commendable contribution towards the cause and care of the underprivileged elderly. Shri Ram Singh, Dir. (Finance) received the award from Hon¿ble President of India Sh. Pranab Mukherjee.
    ICC PSE Excellence Award-2012 for R&D, Technology Development & Innovation in the Mini Ratnas Category.
    Performance Excellence Award for Financial and Operational Strength for the year 2010-11 from Indian Institution of Industrial Engineering (IIIE).
    ICAI Award for Excellence in Cost Management Practices - 2nd prize for the year 2011 in the category of Public-Service Sector-Large.
    BT Star PSU Excellence Award 2012 for excellence in Human Resource Management. 
    Special Commendation for the Golden Peacock Occupational Health & Safety Award 2012.
    PMI Award-2012 for Guru Gobind Singh Refinery Project of HPCL-Mittal Energy Limited (HMEL) at Bathinda.
    Certificate of Appreciation from National Safety Council of India (NSCI) in recognition of the achievements in occupational health and safety during the assessment year 2010 for PFCCU, MRPL, Mangalore.
    IPE CSR Award in recognition of best practices in CSR.
    CIDC Partners in Progress Trophy 2013 for display of utmost commitment and drive to create a vibrant work environment for the construction fraternity especially for achieving targets of ¿Mission Skilling India¿ under various initiatives by CIDC.
    Best Site Award 2012 from ISPRL in recognition of the outstanding efforts put in by site team towards safety, quality, housekeeping and Project management for Strategic Storage of Crude Oil Project at Padur.
    Lifetime Achievement Award 2012 by Indira Gandhi Technological & Medical Science University, Arunachal Pradesh to Shri A K Purwaha, C&MD for his contribution towards Project Management and Corporate Affairs.
    India CFO Award for Excellence in Risk Management to Shri Ram Singh, Director (Finance) by IMA India.
    Women Super Achievers Award to Ms. Veena Swarup, Director (HR) by Institute of Public Enterprise (IPE) and World HRD Congress in recognition of her achievement.
    Award to Ms. Veena Swarup, Director (HR) by Forum for Emotional Intelligence Learning (FEIL) and  Tata Institute for Social Sciences (TISS)  in recognition of her Outstanding Contribution to Leadership Development.
    Achievement Award for Academician Scientist/Technologist/Innovator to Dr. R N Maiti, AGM (R&D) by CIDC.
    HR Leadership Award by Institute of Public Enterprises (IPE) to Shri P K Rastogi, the then director (HR) in recognition of his outstanding contribution in the field of
  • 2013-2014
    Commendation Certificate of SCOPE Meritorious Award in Specialized Fields 2011-12 under the category of R&D, Technology Development and Innovation. Shri A K Purwaha, C&MD received the award from Hon'ble President of India Sh. Pranab Mukherjee. 
    Petrofed Award-2012 in the following two categories:
    - Innovator of the Year Team - Special Commendation Award for EIL & Indian Oil and 22 member team of EIL and IndianOil led by Dr. R K Malhotra, the then director (R&D), IndianOil.
    - Innovator of the Year Team - Special Commendation Award: for EIL & CPCL and the 8 member team lead by Shri Ajay N. Deshpande, Director (Technical), EIL.
    Best CFO Award - 2013 to Shri Ram Singh, Director (Finance) by Business Today.
    `Best Innovation Award' and `Best Overall Corporate Social Responsibility Performance Award' to EIL by Institute of Public Enterprise (IPE).
    12th ICSI National Award for Excellence in Corporate Governance 2012.
    Petrofed 2012 Woman Executive of the Year - Special Commendation Award to Ms. Jayati Ghosh, DGM (Process Design & Dev.)
    PSU Award 2013 - runner up trophy in the `Asset Utilization' category by Governance Now Magazine.
    Best CEO with HR Orientation Award 2013 to Shri A K Purwaha, C&MD by Institute of Public Enterprises.
    ""HR Leadership Award"" to Ms. Veena Swarup, Director (HR) and citation for her inclusion in ""30 Most Talented HR Leaders in PSUs""  by Institute of Public Enterprises.
    1st prize for Excellence in Cost Management Practices for the Year-2012 in the category of ""Public - Service Sector - Large"" by the Institute of Cost Accountants of India (ICAI).
    Dainik Bhaskar India Pride Award 2013 to Shri D. Moudgil, Director (Projects), EIL for Excellence as Head of Department - Projects.
    PSE Excellence Award 2013 for R&D, Technology Development & Innovation by Indian Chamber of
    Commerce (ICC)  and Department of Public Enterprises (GoI). 
    SKOCH Order of Merit Award for Innovative Technology on ""Oxyenrich Process for Capacity Enhancement & Trouble Free Operation of Claus Sulphur Plant"".
    Best Performance Award for the year 2012-13 for Project Management Consultancy Services for Dabhol -  Bangalore Pipeline Phase-1 Project by GAIL.
    FICCI Chemical and Petrochemical Awards 2013 for The Process Innovator of the Year in Petrochemicals for ""Food Grade Hexane (FGH)"" Technology jointly developed by EIL & IOCL and Best Contribution to Academia for `Wet Air Oxidation (WAO)"" Technology jointly developed by EIL &  IIT Roorkee. 
    `Golden Peacock Award for Sustainability' for the year 2013 instituted by Institute of Directors (IOD).
    Safety Certificate for achieving 10 million LTA free man-hours from GSPC for Deen Dayal West Field Development Onshore Project at Kakinada.
    Safety Certificate for achieving 6 million LTA free man-hours at DHDT Project of Bongaigaon Refinery.
    Safety Certificate for achieving 8 million LTA free man-hours for CPP Project, Paradeep Refinery.
    Safety Certificate for 18.4 million LTA free man-hours from GAIL for DBPL Project.
    Safety Certificate from ISPRL for 8 million LTA free man-hours for Crude Oil Storage Project at Mangalore.
    Safety Certificate for achieving 25 million safe man-hours without any LTA from GAIL as Project Management Consultant for GAIL's Petrochemical Complex II Project at Pata, Auriaya.
    Safety Certificate for achieving 14 Million Safe man hours from ISPRL for construction of Crude Oil Cavern Project at Padur.
    Safety Certificate for achieving 1.53 Million man-hours without any LTA as Project Management Consultant at Kailaras Compressor Station Project, Morena (M.P.) from GAIL.
    Safety Certificate for achieving 9 million safe man-hours without any LTA from ISPRL for the Crude Oil Strategic Storage Project in Mangalore.
    Safety Certificate for achieving 2.6 million LTA free man-hours from BPCL for Mumbai-Uran Pipeline Project.
    Safety Certificate and certificate of appreciation  for achieving 10 million safe man-hours for Mangalore Cavern Project from ISPRL.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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