The shares of Engineers India Ltd gained 7.73% on Thursday’s early trades to reach an intraday high of ₹ 85.00 apiece on the National Stock Exchange (NSE). Its shares were trading at ₹ 84.40 apiece at 11:33 AM on Thursday. It was one of the biggest gainers in the ‘A’ Group after volumes jumped at the counter.
In mid-December, Engineer’s India gained an assignment for providing Owner’s Engineer Services for 30,000 MTPA polysilicon and 500 MTPA monosilane projects from M/s Mundra Solar Technology Limited, a group company of Adani Enterprises. This is one of the niche sectors of Polysilicon production which has been a primary component of manufacturing photovoltaic panels.
Conventionally, India has been dependent on the import of Polysilicon and this would be a step towards realising the vision of Atmanirbhar Bharat. In addition, this would also contribute towards the nation’s target of Net Zero by 2070.
HDFC Securities has a ‘buy’ rating on the stock with a target price of ₹ 96.5. This translates to an upside of 14.34% compared to its current market price of ₹ 84.40.
Engineers India Ltd (EIL) is a leading global engineering consultancy and EPC company owned by the Govt. Of India. It operates under the aegis of the Ministry of Petroleum and Natural Gas (MoPNG). It provides engineering consultancy and EPC services focused on the oil & gas and petrochemical industries.
The company is a small-cap company with a market capitalization of ₹ 4435 crores. It has a return on equity of 7.93% and an ideal debt-to-equity ratio of 0.01. Its shares are trading at a price-to-earnings ratio of 17.02, which is higher than the industry average of 8.89, indicating that the stock might be undervalued, compared to its peers.
Written by Simran Bafna
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