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Last Updated on: 23 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532178 | NSE: ENGINERSIN

Engineers India Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 11:20 pm

Market Cap 10,162 Cr.
Current Price 181
High / Low304/143
Stock P/E27.5
Book Value 42.4
Dividend Yield1.66 %
ROCE22.2 %
ROE20.8 %
Face Value 5.00
PEG Ratio8.16

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Engineers India Ltd

Competitors of Engineers India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Incon Engineers Ltd 6.62 Cr. 15.324.8/12.1 0.440.00 %72.7 %162 % 10.0
Hittco Tools Ltd 8.53 Cr. 13.816.0/9.53 4.590.00 %7.27 %5.66 % 10.0
Harshil Agrotech Ltd 616 Cr. 12.113.7/0.29104 1.200.00 %16.4 %13.5 % 1.00
Gujarat Toolroom Ltd 202 Cr. 12.645.9/10.81.72 14.87.92 %179 %170 % 1.00
GTV Engineering Ltd 158 Cr. 506640/39524.1 1250.00 %12.7 %13.5 % 10.0
Industry Average4,347.49 Cr533.9644.66117.390.43%29.65%27.04%6.35

All Competitor Stocks of Engineers India Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales1,132746657692818815793842880818790868805
Expenses961640595626708768748792713747691818728
Operating Profit171106626711047455016771995077
OPM %15%14%9%10%13%6%6%6%19%9%12%6%10%
Other Income-115232539432865264594443051
Interest2000000001011
Depreciation75585577788811
Profit before tax461248197147691036920415613471117
Tax %32%26%30%27%17%26%17%27%23%25%24%26%23%
Net Profit25317417965751619013912763116
EPS in Rs0.440.050.300.721.411.151.340.293.382.472.271.132.06

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales2,5291,8461,7411,5411,4801,8242,4763,2373,1442,9133,3303,281
Expenses1,9301,3551,5071,3311,1631,3952,0992,7812,7922,5673,0202,984
Operating Profit599491234210316429377455352346310297
OPM %24%27%13%14%21%24%15%14%11%12%9%9%
Other Income31222926524722217622225534130164219
Interest112252346333
Depreciation111520252324222424242635
Profit before tax898704477430511579574683356449446478
Tax %30%31%34%35%35%34%35%36%27%24%23%25%
Net Profit632483313278330383368424249140346445
EPS in Rs9.387.164.644.134.906.075.836.714.432.486.167.92
Dividend Payout %32%45%54%48%61%66%69%77%45%121%49%38%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-23.58%-35.20%-11.18%18.71%16.06%-3.92%15.22%-41.27%-43.78%147.14%28.61%
Change in YoY Net Profit Growth (%)0.00%-11.62%24.01%29.89%-2.64%-19.98%19.13%-56.49%-2.50%190.92%-118.53%

Engineers India Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:6%
5 Years:6%
3 Years:1%
TTM:-10%
Compounded Profit Growth
10 Years:0%
5 Years:4%
3 Years:10%
TTM:-22%
Stock Price CAGR
10 Years:5%
5 Years:12%
3 Years:36%
1 Year:24%
Return on Equity
10 Years:14%
5 Years:16%
3 Years:16%
Last Year:21%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 12:34 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital168168168168337316316316281281281281281
Reserves2,1272,3532,4632,6532,5082,0252,0292,0901,4701,4891,6801,9742,101
Borrowings0000000544193329
Other Liabilities1,6121,2951,3561,3421,5512,1732,4162,6852,6872,4042,4082,4542,494
Total Liabilities3,9073,8173,9884,1644,3964,5144,7615,0964,4414,1774,3884,7424,905
Fixed Assets54121272242272257248274263263277296290
CWIP1361321924565252317263643
Investments647732138755332423154611,3241,0881,1791,3891,438
Other Assets3,0712,8323,5593,8223,5353,9634,1464,3592,8532,8212,9063,0213,135
Total Assets3,9073,8173,9884,1644,3964,5144,7615,0964,4414,1774,3884,7424,905

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +34285658823659954937617148-113222
Cash from Investing Activity +-6616717470197165-4-22977661322145
Cash from Financing Activity +-274-256-240-162-284-892-362-334-904-149-176-180
Net Cash Flow2-4-1-4150-129183-18843-3934187

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow599.00491.00234.00210.00316.00429.00377.00450.00348.00342.00291.00264.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days5070928998112637762484037
Inventory Days
Days Payable
Cash Conversion Cycle5070928998112637762484037
Working Capital Days-100-107-100-117-164-215-198-164-186-179-124-123
ROCE %41%28%16%16%18%22%25%29%25%25%24%22%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters51.32%51.32%51.32%51.32%51.32%51.32%51.32%51.32%51.32%51.32%51.32%51.32%
FIIs6.03%6.11%6.74%7.11%7.58%7.84%7.96%7.70%7.88%7.60%7.01%7.26%
DIIs12.78%12.58%13.05%12.62%13.08%14.10%15.81%18.46%17.18%15.51%13.60%13.89%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.01%0.01%
Public29.87%29.99%28.89%28.95%28.02%26.74%24.90%22.51%23.60%25.54%28.05%27.51%
No. of Shareholders2,92,5232,95,6162,92,1912,90,3542,82,6162,66,2672,58,3262,41,8202,75,9902,88,4613,85,9504,26,824

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Quant Small Cap Fund10,312,0171.13258.6710,312,0172024-11-200%
DSP Small Cap Fund5,630,8730.93141.2410,312,0172024-11-20-45.4%
DSP Flexi Cap Fund4,138,9120.91103.8210,312,0172024-11-20-59.86%
SBI PSU Fund3,200,0002.5979.4710,312,0172024-11-20-68.97%
ICICI Prudential Bharat 22 ETF2,653,9090.3665.7910,312,0172024-11-20-74.26%
Aditya Birla Sun Life PSU Equity Fund1,945,2500.9548.7910,312,0172024-11-20-81.14%
DSP Tiger Fund662,0610.3416.6110,312,0172024-11-20-93.58%
Aditya Birla Sun Life Bal Bhavishya Yojna500,0001.1812.5410,312,0172024-11-20-95.15%
Nippon India Nifty Smallcap 250 Index Fund239,7310.396.0110,312,0172024-11-20-97.68%
Samco ELSS Tax Saver Fund200,0004.445.0210,312,0172024-11-20-98.06%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)7.926.162.483.996.71
Diluted EPS (Rs.)7.926.162.483.996.71
Cash EPS (Rs.)7.036.586.525.077.25
Book Value[Excl.RevalReserv]/Share (Rs.)40.1334.9031.4931.1538.08
Book Value[Incl.RevalReserv]/Share (Rs.)40.1334.9031.4931.1538.08
Revenue From Operations / Share (Rs.)58.3759.2551.8255.9451.22
PBDIT / Share (Rs.)9.188.418.439.5811.22
PBIT / Share (Rs.)8.567.958.019.1610.84
PBT / Share (Rs.)8.517.938.006.3410.81
Net Profit / Share (Rs.)6.416.126.104.656.87
NP After MI And SOA / Share (Rs.)7.926.162.484.436.71
PBDIT Margin (%)15.7314.1916.2717.1321.89
PBIT Margin (%)14.6613.4215.4616.3721.15
PBT Margin (%)14.5713.3715.4311.3321.10
Net Profit Margin (%)10.9710.3311.778.3113.40
NP After MI And SOA Margin (%)13.5710.394.787.9113.09
Return on Networth / Equity (%)19.7417.657.8814.2117.61
Return on Capital Employeed (%)20.9122.4625.2429.1528.21
Return On Assets (%)9.387.893.335.608.31
Asset Turnover Ratio (%)0.710.770.650.650.65
Current Ratio (X)1.101.041.020.971.51
Quick Ratio (X)1.101.041.010.971.51
Dividend Payout Ratio (NP) (%)37.8648.69104.7370.9678.19
Dividend Payout Ratio (CP) (%)35.1045.3389.5664.8073.99
Earning Retention Ratio (%)62.1451.31-4.7329.0421.81
Cash Earning Retention Ratio (%)64.9054.6710.4435.2026.01
Interest Coverage Ratio (X)169.49314.41496.28145.96406.24
Interest Coverage Ratio (Post Tax) (X)119.25229.96359.97113.84249.67
Enterprise Value (Cr.)10131.713085.242214.273008.931017.13
EV / Net Operating Revenue (X)3.090.920.760.950.31
EV / EBITDA (X)19.636.534.675.591.44
MarketCap / Net Operating Revenue (X)3.461.261.231.381.17
Retention Ratios (%)62.1351.30-4.7329.0321.80
Price / BV (X)5.032.132.032.471.58
Price / Net Operating Revenue (X)3.461.261.231.381.17
EarningsYield0.030.080.030.050.11

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Engineers India Ltd as of November 23, 2024 is: 246.55

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 23, 2024, Engineers India Ltd is Undervalued by 36.22% compared to the current share price 181.00

Intrinsic Value of Engineers India Ltd as of November 23, 2024 is: 254.86

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 23, 2024, Engineers India Ltd is Undervalued by 40.81% compared to the current share price 181.00

Last 5 Year EPS CAGR: 3.37%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 24.25%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -148.08, which is a positive sign.
  3. The company has higher reserves (2,074.00 cr) compared to borrowings (7.23 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (1.92 cr) and profit (548.75 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 69.83, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Engineers India Ltd:
    1. Net Profit Margin: 10.97%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 20.91% (Industry Average ROCE: 28.37%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 19.74% (Industry Average ROE: 23.51%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 119.25
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.1
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 27.5 (Industry average Stock P/E: 32.04)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Engineers India Ltd. is a Public Limited Listed company incorporated on 15/03/1965 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74899DL1965GOI004352 and registration number is 004352. Currently Company is involved in the business activities of Architectural and engineering activities and related technical consultancy. Company’s Total Operating Revenue is Rs. 2870.40 Cr. and Equity Capital is Rs. 281.02 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Engineering - GeneralEngineers India House, New Delhi Delhi 110066eil.mktg@eil.co.in
http://www.engineersindia.com
Management
NamePosition Held
Ms. Vartika ShuklaChairman & Managing Director
Mr. Sanjay JindalDirector - Finance & CFO
Mr. Atul GuptaDirector - Commercial
Mr. Rajiv AgarwalDirector - Technical
Mr. Rajeev GuptaDirector - Projects
Mr. Deepak MhaskeyNon Official Independent Director
Mr. Jai Prakash TomarNon Official Independent Director
Mr. Ravi Shanker Prasad SinghNon Official Independent Director
Mr. Harishkumar Madhusudan JoshiNon Official Independent Director
Dr. Prashant Vasantrao PatilNon Official Independent Director
Mrs. Karuna GopalNon Official Independent Director
Mr. Arun KumarGovernment Nominee Director

FAQ

What is the latest intrinsic value of Engineers India Ltd?

The latest intrinsic value of Engineers India Ltd as on 23 November 2024 is ₹246.55, which is 36.22% higher than the current market price of ₹181.00.

What is the Market Cap of Engineers India Ltd?

The Market Cap of Engineers India Ltd is 10,162 Cr..

What is the current Stock Price of Engineers India Ltd as on 23 November 2024?

The current stock price of Engineers India Ltd as on 23 November 2024 is 181.

What is the High / Low of Engineers India Ltd stocks in FY 2024?

In FY 2024, the High / Low of Engineers India Ltd stocks is 304/143.

What is the Stock P/E of Engineers India Ltd?

The Stock P/E of Engineers India Ltd is 27.5.

What is the Book Value of Engineers India Ltd?

The Book Value of Engineers India Ltd is 42.4.

What is the Dividend Yield of Engineers India Ltd?

The Dividend Yield of Engineers India Ltd is 1.66 %.

What is the ROCE of Engineers India Ltd?

The ROCE of Engineers India Ltd is 22.2 %.

What is the ROE of Engineers India Ltd?

The ROE of Engineers India Ltd is 20.8 %.

What is the Face Value of Engineers India Ltd?

The Face Value of Engineers India Ltd is 5.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Engineers India Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE