Buy Engineers India: IIFL Securities's Target Price Rs 300
IIFL Securities recommends buying Engineers India at the current market price of Rs 289.2, with a target price of Rs 300. The brokerage firm believes that the stock is undervalued and has the potential to deliver strong returns in the medium to long term. Engineers India is a leading engineering and construction company with a strong presence in the oil and gas sector. The company has a healthy order book and is well-positioned to benefit from the government's focus on infrastructure development.
About Engineers India:
Engineers India Limited (EIL), listed on the National Stock Exchange (NSE), is an Indian multinational engineering consulting corporation headquartered in New Delhi, India. EIL provides a wide range of engineering and project management services across sectors such as hydrocarbon, refining, petrochemicals, pipelines, offshore, power, metals and minerals, and infrastructure. The company has expertise in design, engineering, procurement, construction, and project management for industrial and infrastructure projects. With over 60 years of experience, EIL is recognized for its technical prowess, domain knowledge, and strong execution capabilities, both in India and internationally.
52 Week Price Trend:
Engineers India's current market price (CMP) of Rs 289.2 falls within a range bounded by its 52-week high and low prices of Rs 273.9 and Rs 70.05, respectively. This suggests that the stock has been trading in a relatively narrow band over the past year. However, it is important to note that the CMP is significantly higher than the 52-week low, indicating a substantial recovery in share price over the past year. Investors should carefully consider the potential risks and rewards before making any investment decisions.
Stratzy's MOST Analysis:
ENGINEERSIN has received a BB rating from Stratzy's MOST Framework, indicating medium fundamental risks. The framework evaluates four pillars: Management, Outlook, Safety, and Trend. Each pillar is scored individually, and the overall rating is determined based on these scores. The BB rating suggests that while ENGINEERSIN has some strengths, there are also areas where it faces challenges. Investors should carefully consider these factors before making investment decisions.
Company's Fundamentals:
Engineers India Limited (NSE: ENGINEERSIN) is a leading engineering and construction company in India. Its stock is currently trading at a Price-to-Earnings (PE) ratio of 23.38, indicating that investors are willing to pay 23.38 times the company's earnings per share for its stock. The Price-to-Book (PB) ratio of 5.62 suggests that the company's market value is 5.62 times its book value, indicating that investors are paying a premium for the company's assets and growth potential. The Dividend Yield of 1.39% represents the annual dividend payment as a percentage of the current stock price, providing investors with a modest income stream in addition to potential capital appreciation.
Fundamental and Technical information provided in this blog were last updated on 11 Jul, 2024
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