Engineers India
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Engineers India Limited (EIL) is navigating a complex landscape characterized by a robust order book and a strategic pivot towards high-margin consultancy services. Management's focus on diversifying into green technologies and expanding its international footprint, particularly in the Middle East and Africa, positions the company for long-term growth despite near-term geopolitical challenges. The anticipated recovery in project execution and a disciplined approach to capital allocation support Vista's forecast of stable margins and a cautious revenue outlook. While the infrastructure sector is expanding, EIL faces headwinds from subdued project awards and execution risks. Over the next 12-24 months, the company’s ability to convert its strong order pipeline into revenue will be critical, alongside maintaining its operating margin target of 16%. Key opportunities lie in the nuclear and coal gasification sectors, while geopolitical tensions and project delays in the Middle East remain significant watchpoints
Why We Like This Stock
- Strong order book of INR 14,424 crores, providing visibility for future revenue
- Strategic pivot towards high-margin consultancy services expected to enhance profitability
- Expansion into emerging sectors like green hydrogen and nuclear energy aligns with long-term growth trends
Things To Watch Out For
- Geopolitical tensions in the Middle East pose risks to project execution and order inflows
- Subdued project awards could lead to revenue contraction over the forecast period
- Execution risks associated with transitioning between legacy and new turnkey projects may impact performance
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 3,281 | 3,088 | 3,928 | 3,728 | 4,083 |
| Profit Before Tax (Cr.) | 469 | 616 | 894 | 954 | 977 |
| PBT Margin | 14.3% | 19.9% | 22.8% | 25.6% | 23.9% |
| Net Profit (Cr.) | 420 | 614 | 684 | 726 | 743 |
| Earnings Per Share | 7.5 | 10.9 | 12.2 | 12.9 | 13.2 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| ICICI Securities | ▲ Buy | 290 | 17-Aug-2026 |
| Prabhudas Liladhar | ▲ Buy | 294 | 17-Aug-2026 |
| Moneycontrol | ▲ Overweight | nan | 25-May-2026 |
Company Overview
Show Company Profile
Engineers India Limited, an engineering consultancy company, provides design, engineering, procurement, construction, and integrated project management services for oil, gas, fertilizers, steel, railways, power, infrastructure, and petrochemical industries worldwide. The company operates through two segments, Consultancy & Engineering Projects, and Turnkey Projects. It offers supply chain management services, such as supplier/contractor registration, contracting and purchase of goods/services/works, expediting, inspection, and supplier/contractor performance review; and develops process technologies for various industries. In addition, the company provides construction services comprising pre-construction activities, including bid management process, plot plan review/heavy lift study, etc.; and construction services comprising site construction management, liaison with statutory authorities, construction quality and warehouse management, HSE management, contracts administration, pre commissioning and commissioning assistance, and contract and site closing services. Further, it offers heat and mass transfer equipment design, environment engineering, specialist materials and maintenance, specialist materials, and maintenance services and plant operations and safety services; and pre-feed and feed engineering services for a range of processes in the hydrocarbon processing industry. Additionally, the company provides project management, third party inspection, quality assurance, independent engineer and lender's engineer services, and project appraisal and project execution services. It also offers certification, recertification, third party inspection, safety audits for offshore and onshore oil and gas facilities and other qualitative sensitive sectors of the industry. Engineers India Limited was incorporated in 1965 and is headquartered in New Delhi, India.