ENGI­NEERS INDIA

Dalal Street Investment Journal - - REVIEWS -

We had rec­om­mended Engi­neers India in vol­ume 31 is­sue no. 26 dated Novem­ber 28 - De­cem­ber 11, 2016, un­der the ‘Choice Scrip’ sec­tion when the scrip was trad­ing at ₹138.12 per share. Our rec­om­men­da­tion was based on the com­pany’s foray into in­ter­na­tional hy­dro­car­bon mar­ket and big ticket or­ders from Mid­dle East and North Amer­ica, strong fi­nan­cial per­for­mance and high growth prospects.

Engi­neers India is one of the lead­ing en­gi­neer­ing con­sul­tancy and EPC com­pa­nies with its pri­mary fo­cus on the hy­dro­car­bon sec­tor. The com­pany’s seg­ments in­clude con­sul­tancy and en­gi­neer­ing pro­jects and turnkey pro­jects. The com­pany’s ser­vices in­clude tech­nolo­gies, pre-front end en­gi­neer­ing de­sign (PRE-FEED) and FEED, project man­age­ment, pro­cure­ment ser­vices, con­struc­tion ser­vices and spe­cial­ized ser­vices. The com­pany fo­cuses on var­i­ous sec­tors, in­clud­ing fer­til­izer and liq­ue­fied nat­u­ral gas (LNG), non-fer­rous met­al­lurgy, in­fra­struc­ture, strate­gic crude oil stor­age, nu­clear and so­lar en­ergy, and ex­plo­ration and pro­duc­tion. It also pro­vides var­i­ous tech­nolo­gies for petroleum re­fin­ing, oil and gas pro­cess­ing, and aro­mat­ics.

On the fi­nan­cial front, Engi­neers India posted a 9.81 per cent in­crease in its net sales to ₹375.36 crore in the sec­ond quar­ter of FY18 as against ₹341.82 crore in the same quar­ter of the pre­vi­ous year. The com­pany’s PBIDT stood at ₹81.74 crore in Q2FY18, higher by 11.49 per cent on a yearly ba­sis. The com­pany’s PAT in­creased to ₹81.38 crore in Q2FY18, higher by 1.34 per cent on a year-on-year ba­sis.

On an an­nual ba­sis, the net sales of the com­pany de­clined 4.13 per cent to ₹1,448.64 crore in the FY17 as against ₹1,511.02 crore in FY16. The com­pany’s PBIDT in­creased 53.25 per cent to ₹302.20 crore in FY17 on a yearly ba­sis. The com­pany’s profit af­ter tax grew 17.69 per cent to ₹325 crore in FY17 as against ₹276.19 crore in the pre­vi­ous fis­cal.

Af­ter our rec­om­men­da­tion the scrip has wit­nessed a hike of nearly 8 per cent and is trad­ing at ₹151.70 per share. The growth of the stock is slow and is ex­pected to re­main the same in the next few quar­ters. We rec­om­mend our reader-in­vestors to book profit at the cur­rent lev­els.

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