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Engineers India Ltd Stock Analysis

Small Cap
Evaluated by 8900 users | BSE: 532178 | NSE: ENGINERSIN |
Engineering

Engineers India (EIL), incorporated in 1965, the company provides engineering consultancy and EPC services principally focused on the oil & gas and petrochemical industries. The Company has also diversified into sectors like infrastructure, water and...

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'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Capital Employed 37.57%29.35%19.49%10.51%10.28%11.88%14.85%16.13%19.28%12.92%-
Value Creation Index 1.131.350.56-0.16-0.18-0.050.190.290.540.03-
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 3,8982,4521,8841,7191,5081,4421,7932,4453,2043,1053,372
Y-o-Y Gr. Rt.--37.1%-23.2%-8.8%-12.3%-4.4%24.3%36.4%31%-3.1%-
Adjusted EPS (Rs.) 9.128.886.783.94.044.825.915.777.014.585.37
Y-o-Y Gr. Rt.--2.6%-23.7%-42.5%3.6%19.3%22.6%-2.4%21.5%-34.7%-
Book Value per Share (Rs.) 27.3633.236.5338.1140.9141.1935.8936.0237.1230.2631.88
Adjusted Net Profit 615598457263272325373365443257302
Net Op. Cash Flow (Rs. Cr.) 10734483.159.686.7231587545372160-
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 -2.5%15.5%20.1%-3.1%
Adjusted EPS -7.4%2.5%-8.2%-34.7%
Book Value per Share 1.1-5.9-5.5-18.5
Share Price -4.8% -10.4% -15.2% 16.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity (%) 37.4229.3119.4510.4510.2311.7514.816.0419.1712.7317.28
Operating Profit Margin (%) 18.3723.9520.4212.739.1819.3222.9214.8414.5411.0212.48
Net Profit Margin (%) 15.7724.3924.2515.2918.0522.5420.8114.9113.828.298.95
Debt to Equity 0000000000-
Working Capital Days 171281326326309300304254208226-
Cash Conversion Cycle -25-53-195312227282422-
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Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 51.32%
Institutions 20.78%
Non-Institutions 27.89%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Past 10 year's financial track record analysis by Moneyworks4me indicates that Engineers India Ltd is a good quality company.

Engineers India Ltd's earnings have grown by 2.5%, whereas share price has declined -10.4% CAGR over the past five years, indicating the company’s share price is likely undervalued. However, for specific investment actions please consult your investment advisor.

Engineers India Ltd share price has declined -5.1% annually (CAGR) over the past ten years.

Past 10 years financial track record analysis and assessment of future prospects by Moneyworks4me indicates that Engineers India Ltd is a good long term investment. However, you need to ensure you buy at a right price to earn good returns.

Engineers India (EIL), incorporated in 1965, the company provides engineering consultancy and EPC services principally focused on the oil & gas and petrochemical industries. The Company has also diversified into sectors like infrastructure, water and waste management, solar & nuclear power and fertilizers to leverage its strong technical competencies and track record.

Today, EIL is a ‘Total

Engineers India (EIL), incorporated in 1965, the company provides engineering consultancy and EPC services principally focused on the oil & gas and petrochemical industries. The Company has also diversified into sectors like infrastructure, water and waste management, solar & nuclear power and fertilizers to leverage its strong technical competencies and track record.

Today, EIL is a ‘Total Solutions’ engineering consultancy company providing design, engineering, procurement, construction and integrated project management services from ‘Concept to Commissioning’ with highest quality and safety standards. EIL’s QMS, OHSMS and EMS are certified to ISO 9001, OHSAS 18001 and ISO 14001 respectively. It also provides specialist services such as heat and mass transfer equipment design, environmental engineering, specialist materials and maintenance and plant operations and safety services.

With corporate office in New Delhi, EIL also operates from its office in Gurugram, branch office in Mumbai, three regional engineering offices in Kolkata, Chennai & Vadodara and has inspection offices at all major manufacturing locations of the country. The company’s overseas presence is marked by an engineering office in Abu Dhabi, which caters to the business needs in UAE/Middle-East region. Additionally, there are offices in London, Milan and Shanghai to coordinate the activities of international procurement and marketing.

Business area of the company

The company is engaged in construction and maintenance of industrial facilities such as refineries, chemical plants, etc. The company also engaged in architectural and engineering activities and related technical consultancy. The company also helps its clients with management consultancy activities. Additionally, the company is also in research and experimental development on natural sciences and engineering.

BUSINESS DIVISIONS

  • Mining & Metallurgy
  • Power
  • Hydrocarbon
  • Chemicals & Fertilizers
  • Infrastructure

SERVICES

EIL provides entire gamut of engineering consultancy and EPC services with highest quality and safety standards.

  • Technologies
  • Pre FEED & FEED
  • Project Management
  • Supply Chain Management
  • Construction
  • Specialised

Awards and recognitions

2017

  • Rajbhasha Shield for FY2016-17 conferred by Ministry of Petroleum & Natural Gas for outstanding work towards promotion of Official Language.
  • FIPI ‘Project Management - Company of the Year’ Award for the year 2016 jointly with BPCL.
  • Rajbhasha Shield for FY2015-16 conferred by Ministry of Petroleum & Natural Gas for outstanding work towards promotion of Official Language.
  • Special Commendation in Institutional Category I (Maharatna & Navratna PSEs) of “SCOPE Award for Excellence and Outstanding Contribution to the Public Sector Management 2014-15?.
  • Institute of Public Enterprises (IPE) “Women of Excellence Award 2017” to four EIL Women Executives in Senior and Junior categories.
  • “Best Indigenous Innovator Team Award” at 21st Refinery Technology Meet organised by Centre for High Technology (CHT), MoP&NG.

2018

  • 10th CIDC Vishwakarma Award for Construction Health, Safety and Environment to Daman Development Project at Hazira.
  • 5th Governance Now PSU Award for “Consistent Growth” in Navratna Category
  • “Certificate of Appreciation” for “Good Practices in Safety System” for EIL’s Daman Development Project, Hazira during the 7th FICCI Safety Systems Excellence Awards for Industry 2018.
  • 10th CIDC Vishwakarma Award for Best Construction Projects to DHT Project at BPCL Mumbai Refinery.
  • ‘IEI Industry Excellence Award 2018’ from The Institution of Engineers (India) in the Engineering and Service Consultancy sector in the category of “organisations having turnover of Rs 500 crore and above”.
  • Rajbhasha Shield for FY2017-18 conferred by Ministry of Petroleum & Natural Gas for outstanding work towards promotion of Official Language.

2019

  • PETROTECH 2019 Special Technical Award in the “Greening of Oil and Gas Business and Sustainability” category.
  • 6th Governance Now PSU Award for “Technology Adaption” and “Communications (Outreach)”
  • PETROTECH 2019 Special Technical Award in the “Women in Hydrocarbon Sector” category to Ms. R. Priyamvada, GGM (Technical), EIL
  • 11th CIDC Vishwakarma Award for “Best Construction Projects” to DHDT Project, Numaligarh Refinery, Assam and for “Construction Health, Safety & Environment” to BS-VI Quality Fuel Project, HMEL Guru Gobind Singh Refinery, Bathinda, Punjab
  • “Pride of HR Professional – Public Sector Undertakings” Award to Sh. V.C. Bhandari, Dir. (HR), EIL by World HRD Congress.
  • “Distinguished Alumni Award” to Director (HR), EIL by Delhi College of Engineering
  • Dun & Bradstreet Corporate Awards 2019 in “Best Growth Performance – Engineering Projects/ Capital Goods” category
  • “Special Commendation Award” of Downstream India Excellence Awards 2019 in the category of R&D Company of the Year.
  • Rajbhasha Shield for FY2018-19 conferred by Ministry of Petroleum & Natural Gas for outstanding work towards promotion of Official Language.
  • ‘IEI Industry Excellence Award 2019’ from The Institution of Engineers (India) in the Engineering and Service Consultancy sector in the category of “organisations having turnover of Rs 500 crore and above”.
  • FIPI “Young Achiever of the Year in the Oil and Gas Industry” Award for year 2019 to Ms. Seema Gurnani, Manager (Project B), EIL

2020

  • Top Rankers Excellence Award for Finance Leadership 2020? to Shri Sunil Bhatia, Director (Finance), EIL by by Top Rankers Management Consultants

History and milestones

  • 1964: Incorporated pursuant to a formation agreement dated November 20, 1964 between the Government of India and BIC.
  • 1965: Commenced work in the refineries segment.
  • 1967: Wholly owned Government of India (GoI) company
  • 1969: Expansion to Petrochem with IPCL (now Reliance Industries Ltd)
  • 1970 - 1972: Commenced first international assignment
  • 1970 - 1972: Entered Fertilizer and Non-ferrous metallurgical sector
  • 1975 - 1978: Expansion in Hydrocarbons value chain: Offshore Pipelines Onshore oil and gas
  • 1975 - 1978: Expansion into Onshore oil and gas segment
  • 1989: R&D centre in Gurgaon 18 Patents Process Technologies in Refining and Gas Processing
  • 1997: Accorded the Mini Ratna status Listed on the BSE and NSE
  • 2001: Diversified into Infrastructure
  • 2006: Commenced services in sub-surface crude storages (Vizag Padur & Mangalore)
  • 2010: Successful FPO of 33.6 Million shares of Rs.5 each
  • 2011-13: Expansion into fertilizers projects in overseas territories viz., Bangladesh & Indonesia
  • 2014: Conferred the prestigious 'Navratna' status by the Govt. of India with effect from 24.06.2014.
  • 2014: Largest overseas order from Nigeria
  • 2015: Asset Ownership in Fertilizer Segment with formation of Ramagundam Fertilizers and Chemicals Limited (RFCL), a Joint Venture of EIL, NFL & FCIL.
  • 2015: As part of Golden Jubilee celebrations, Hon’ble Prime Minister of India releases Coffee Table Book and commemorative Postage Stamp.
  • 2016-17: Divestment of 10% equity of Government of India through an Offer for Sale (OFS) Buy back of EIL Shares
  • 2018: The company signs MoU with BHEL for technical collaboration and development of various technologies.
  • 2019: The company signs MoU for 2019-20 with Ministry of Petroleum & Natural Gas.
  • 2019: The company has signed PMC Services Agreement for 1.5 MMTPA Refinery in Mongolia.
  • 2020: Oil India Ltd and Engineers India Ltd-led consortium will buy 48% stake in the Bharat Petroleum Corporation Ltd’s subsidiary, Numaligarh Refinery Ltd (NRL).
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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