Govt-Backed Engineering Giant Secures Rs 106 Crore Mega Deal – Oil & Gas Boom!
A major player in project management secures a massive contract in the petrochemical sector.
Engineers India Limited (EIL) has been awarded a significant contract by Indian Oil Corporation Limited (IOCL) for project management services at the Paradip Petrochemical Complex in Odisha. The contract, valued at Rs 106 crore, covers Phase-I of Project Management/Managing Project Management Consultancy (MPMC) Services and Project Management Consultancy (PMC-2) Services for various units and offsite utilities. The project is expected to be completed in 10 months.
Company Overview
EIL is a Central Public Sector Undertaking (CPSU) under the Ministry of Petroleum and Natural Gas (MoPNG) with the Government of India holding a majority stake. The company provides consultancy, engineering services, and turnkey project execution across multiple industries, including petroleum refining, petrochemicals, oil & gas, infrastructure, power, and water management.
Business Segments
EIL operates across various sectors such as refining, pipelines, fertilizers, mining, and metallurgy. It offers end-to-end project services, including conceptualization, planning, design, engineering, procurement, construction, commissioning, and post-execution maintenance. The company serves both domestic and international clients.
Clientele and Expansion Plans
EIL has a strong client base that includes ONGC, HPCL, IOCL, GAIL, Kenya Petroleum Refineries, Qatar Petroleum, Dangote Group, and NMDC Limited. The company is actively expanding its presence in the Middle East, Africa, and South & Central Asia to tap into new growth opportunities.
Stock Valuation
EIL has a market capitalization of Rs 9,434 crore and trades at a P/E ratio of 22.7, lower than the industry average of 29.2. It maintains a strong financial position with a return on capital employed (ROCE) of 22.2 per cent and a return on equity (ROE) of 20.8 per cent. The company is virtually debt-free, with a debt-to-equity ratio of just 0.01.
EIL’s strategic focus on overseas expansion, coupled with strong financials and a robust order book, positions it well for future growth.
Disclaimer: The article is for informational purposes only and not investment advice.