Our 11th company in the Series of Best Stocks Below Rs. 100 is Engineers India Ltd.
This company is good for investing purpose or not ?
Let’s start with the Company profile
Company Profile :
Engineers India Limited (EIL) is an engineering consultancy, and engineering, procurement and construction company in the hydrocarbons and petrochemicals industry. It offers various technologies for petroleum refining and oil & gas processing.
Now Let’s check the important fundamental figures of this company. This is a small cap company with Market Cap ₹3,344cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 13.44
Sector PE Ratio: 46.96
PE Ratio of this company is low than Sector’s PE. So it’s a Good PE than the peers of this company.
PB Ratio : 1.91
Sector PB Ratio: 4.80
PB Ratio of this company is low than Sector’s PB ratio. So it’s Good PB than the peers of this company.
Dividend Yield : 3.36%
Sector Dividend Yield : 0.69%
Dividend of this company is high than Sector’s dividend. So it’s Good PB than the peers of this company.
ROE (Return on equity) and ROCE (Return on capital equity) is Good
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2021 , Company have 2,690.76 Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
Debt Level: ENGINERSIN has more cash than its total debt.
Reducing Debt: Insufficient data to determine if ENGINERSIN’s debt to equity ratio has reduced over the past 5 years.
Debt Coverage: ENGINERSIN’s debt is well covered by operating cash flow (2551.5%).
Interest Coverage: ENGINERSIN earns more interest than it pays, so coverage of interest payments is not a concern.
Share Holding Pattern
|Promotor Holding||Foreign Institution|
|Other Domestic Institutions||Retail & Others|
Above table showing there is no big change in Promotors holding which is 51.32% in June 2021. FIIs invested in June 2021 with 6.74% and retail investor is 28.89%.
Investment Checklist for Engineers India Ltd.
- The company is currently profitable
- Dividend of 3.45% is not well covered by earnings or forecast to be in the next 3 years
- Large one-off items impacting financial results
- Profit margins (2.6%) are lower than last year (11.9%)
- Earnings are forecast to grow by an average of 33.3% per year for the next 3 years
- Debt level is low and not considered a risk
- Share price has been stable over the past 3 months
- They have sufficient analyst coverage
- Shareholders have not been meaningfully diluted in the past year or recently listed
- Revenue is meaningful (₹32B)
- Market cap is meaningful (₹33B)
- ENGINERSIN does not have negative shareholders equity.
According to its historical performance we can predict stock target.
Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
Entry Buying Zone : 50 to 55
Target: 90 (80% Upside)
Time Horizon: 6-8 Months
Risk Profile: High Risk (Stock is 2.46x as volatile as Nifty)
Hope you liked Our 11th company in the Series of Best Stocks Below Rs. 100. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
Disclaimer: This is an Educational Initiative and is NOT registered under any SEBI regulations. All the information that we provide is just for Educational purposes and you should consult your financial adviser before taking any investment decision. Also we do NOT provide any form of Stock Tips or Advise on stocks or portfolios. My All Trades Only Education Purpose. All trades will be at your risk. You have the responsibility of any trade or any benefit or loss