IIFL Securities Stock Idea: Buy Engineers India with Target Rs 255

IIFL Securities has issued a buy recommendation for Engineers India, setting a target price of Rs 255. The current market price of Engineers India stands at Rs 244.1, presenting a potential upside of over 4%. The recommendation is based on the company's strong order book, robust financial performance, and positive industry outlook. Analysts believe that Engineers India is well-positioned to benefit from the government's focus on infrastructure development and energy security.

About Engineers India:

Engineers India Limited (EIL) is a public sector undertaking under the Ministry of Petroleum and Natural Gas, Government of India. Incorporated in 1965, EIL is a leading engineering and consultancy company providing comprehensive engineering, procurement, and construction (EPC) services for the hydrocarbon, power, minerals and metals, and infrastructure sectors. With over 56 years of experience, EIL has executed projects in over 100 countries across the globe, including major oil and gas projects in India and overseas. The company offers a wide range of services, including design, engineering, project management, procurement, and construction supervision. EIL is listed on the National Stock Exchange of India (NSE) and has a strong track record of financial performance.

52 Week Price Trend:

Engineers India (NSE: ENGINEERSIN) is currently trading at Rs 244.1, below its 52-week high of Rs 273.9 and well above its 52-week low of Rs 70.05. The current price represents a potential upward trend of around 10.8% from the current market price. However, it is prudent to conduct thorough research and analysis, considering market conditions and the company's financial performance, before making any investment decisions.

Stratzy's MOST Analysis:

ENGINERSIN's BB rating from Stratzy's MOST Framework indicates a medium fundamental risk. The MOST framework evaluates companies based on four pillars: Management, Outlook, Safety, and Trend. ENGINERSIN's strengths likely lie in some areas, such as sound management or a positive industry outlook, but it may face challenges in other areas, potentially related to safety concerns or less favorable market trends. This rating suggests that investors should approach ENGINERSIN with some caution and conduct further research to assess its specific risks and potential before making investment decisions.

Company's Fundamentals:

Engineers India, listed on the National Stock Exchange (NSE), exhibits key financial metrics indicating its market valuation and income distribution potential. Its Stock PE ratio of 23.38 suggests the market is willing to pay 23.38 times the company's annual earnings per share. The PB Ratio of 5.62 implies that investors are paying 5.62 times the book value of the company's equity. Moreover, Engineers India's Dividend Yield of 1.39% indicates that shareholders receive 1.39% of the stock's current market price annually as dividends, providing investors with a steady stream of income.

Fundamental and Technical information provided in this blog were last updated on 14 May, 2024

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