1:2 Split, 3:2 Bonus, 43 Dividends: Debt-Free Navratna PSU Engineering Stock To Buy For Rs 230/TP: Prabhudas

Navratna PSU giant, Engineers India is the latest technical pick of leading brokerage Prabhudas Lilladher. There is potential for a nearly 24% upside in the short term in Enginers India, as the brokerage believes that the stock has corrected significantly from its 52-week highs, and its moving average RSI is hinting at a positive momentum ahead.

Engineers India's board meeting is scheduled on October 29, 2024, to consider and approve the Notice of Board Meeting to, inter-alia, consider and approve Unaudited Standalone and Consolidated Financial Results for the Quarter and half year ended on 30th September 2024.

Engineers India Share Price:

Currently, the stock price is at Rs 185.55 apiece, with a market cap of Rs 10,428.70 crore. The stock has corrected lower by nearly 39% from its 52-week high of Rs 304 apiece. The stock's 52-week low is at Rs 116.50 apiece.

Data from BSE showed that Engineers India's price-to-equity ratio is at 34.98x, while the return on equity is at 12.90%.

Prabhudas Lilladher On Engineers India:

Vaishali Parekh, Vice President - Technical Research of Prabhudas Lilladher said, "The stock has witnessed a decent correction from the 52-week high zone of 303 levels and has almost arrived near the strong support levels at 70, where it has taken support multiple times."

In the note, Parekh added, that the chart looks attractive, with the RSI indicating a positive move after the short period of consolidation, it has signalled a buy and can carry on with the positive move further ahead.

"With the trend getting better, we suggest buying the stock for an upside target of 230, keeping the stop loss of 170," Parekh said.

Engineers India Corporate Actions:

The Navratna PSU giant holds a strong record in bonus issues, splits, and dividends.

Bonus Issue: The company has carried out two bonus issues. The last bonus reward was of a 1:1 ratio in January 2017, while the first bonus allotment was of 2:1 in May 2010. In total, Engineers India has given 3 bonuses against two shares.

Stock Split: Engineers India has carried only one stock split and that was in May 2010. The stock split by the ratio of 1:2 on May 7th of that year, where the face value split from Rs 10 to Rs 5 each.

Dividends: Since August 30, 2001, the company has delivered up to 43 dividends, as per Trendlyne data. In the past 12 months, the dividend payout was to the tune of Rs 3 per share. Currently, it has a dividend yield of 1.62%.

Among fundamentals, as per Trendlyne data - the stock rose 36.3% and underperformed its sector by 32.65% in the past year; while its Debt to Equity Ratio is zero as the company is debt-free. Further, the company's Price to Earning Ratio is 26.2, lower than its sector PE ratio of 64.45. Also, its Return on Equity(ROE) for the last financial year was 19.74%, in the normal range of 10% to 20%.

About Engineers India:

Engineers India Ltd (EIL) is a leading global engineering consultancy and Project Management company. Established in 1965, EIL provides engineering consultancy and EPC services principally focused on the oil & gas and petrochemical industries.

The Company has also diversified into sectors like infrastructure, water and waste management, solar & nuclear power and fertilizers to leverage its strong technical competencies and track record.