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

Engineers India, a leading engineering and consultancy company, has received a "buy" call from IIFL Securities. The target price for the stock has been set at Rs 269, representing a potential upside of approximately 17% from its current market price of Rs 230.15. This bullish outlook is based on positive factors such as strong order inflows, a robust balance sheet, and the company's expertise in the infrastructure and energy sectors.

About Engineers India:

Engineers India Limited (EIL) is a leading engineering and consultancy company in India, listed on the National Stock Exchange (NSE). Incorporated in 1958, EIL provides comprehensive engineering, procurement, construction, and management services for various industries, including oil and gas, refining, petrochemicals, fertilizers, power, and infrastructure. With a strong presence in India and a global footprint across 35 countries, EIL offers integrated solutions for complex projects and has a proven track record of delivering high-quality engineering designs and services for its clients.

52 Week Price Trend:

Engineers India (NSE: ENGINEERSIN), currently trading at Rs 230.15, has been navigating a wide range within its 52-week high of Rs 273.9 and low of Rs 70.05. Despite facing headwinds in recent months, it remains above its yearly low. The stock's performance reflects the cyclical nature of the engineering and construction industry, which is susceptible to economic fluctuations and project delays. Investors should monitor market conditions and the company's financial performance to assess its potential for growth and recovery.

Stratzy's MOST Analysis:

ENGINERSIN has a BB rating from Stratzy's MOST framework, which assesses a company's management, outlook, safety, and trend. This indicates that ENGINERSIN has medium fundamental risks. The company's management is competent, and the outlook for the company is positive. However, there are some concerns about the company's safety and trend. Overall, ENGINERSIN is a company with some fundamental risks, but it is still a viable investment.

Company's Fundamentals:

Engineers India Ltd. (NSE: ENGINEERSIN) is an engineering consultancy and project management company. The company's key financial ratios include a Stock PE of 23.38, which indicates that investors are willing to pay 23.38 times the company's earnings per share. The PB Ratio of 5.62 suggests that the company's market value is 5.62 times its book value, indicating potential undervaluation. Additionally, Engineers India offers a Dividend Yield of 1.39%, providing investors with a modest income stream. These ratios provide insights into the company's valuation, profitability, and dividend-paying capacity, helping investors make informed investment decisions.

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

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