Rs 11,353 Crore Order Book: President of India-Backed Engineering Company Bags New Order Worth Rs 730 Crore From Foreign Clients
With a PE ratio of 22.2, the company trades at a premium compared to the industry PE of 32.2. The company has ROCE of 22.2 per cent and ROE of 20.8 per cent.
Engineers India Limited (EIL) has secured two significant contracts from foreign clients in the Middle East for Project Management Consultancy (PMC) Services and Engineering & Project Management Services Agreements. The combined value of these contracts is estimated at Rs 730 crore.
The first contract, valued at Rs 650 crore, involves PMC Services and is expected to be executed over a five-year period. The second contract, worth Rs 80 crore, is for Engineering & Project Management Services, with a project duration of four years. This strategic achievement strengthens EIL’s presence in the Middle East market, reinforcing its expertise in engineering and project management on a global scale.
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EIL is a CPSU with majority ownership of the GoI operating under the administrative control of MoPNG. EIL provides consultancy and engineering services and undertakes turnkey contracts, which include a complete range of project services right from project conceptualization, planning, design, engineering, procurement, construction and commissioning as per client’s requirement and specifications and providing post-execution services for maintenance and monitoring the operation of plant in various industries.
In the Quarterly Results of December 2024, the company reported a revenue of Rs 764.59 crore, reflecting a YoY decline of 11.88 per cent compared to Rs 867.64 crore in December 2023. The operating profit stood at Rs 97.90 crore, marking a 95.53 per cent increase from Rs 50.07 crore in the same quarter last year. The profit after tax (PAT) increased by 71.63 per cent to Rs 108.73 crore from Rs 63.35 crore in December 2023.
In FY24, the company posted a revenue of Rs 3,280.86 crore, registering a decline of 1.48 per cent compared to Rs 3,330.14 crore in FY23. The net profit for the year stood at Rs 445.26 crore, up 28.59 per cent from Rs 346.27 crore in the previous financial year.
With a PE ratio of 22.2, the company trades at a premium compared to the industry PE of 32.2. The company has ROCE of 22.2 per cent and ROE of 20.8 per cent.
Investors must keep this Small-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.