Engineers India Surges Over 7% After Securing Rs 4,681 Crore Order in FY25

Shares of Engineers India Limited (EIL) surged by over 7% on September 12, reaching Rs 224 per share, following the announcement that the company secured new orders worth Rs 4,681 crore as of August 31, 2024, for the current fiscal year (FY25). This significant win has increased EIL’s total order book to approximately Rs 11,350 crore.

This engineering and technical services stock has outperformed the market by a substantial margin, delivering a year-to-date gain of over 27%, compared to the benchmark Nifty 50's 15% rise. Earlier this year, on July 12, 2024, the stock reached a new 52-week high of Rs 304, demonstrating strong investor confidence in the company’s growth trajectory.

Key Drivers Behind Engineers India’s Growth

Engineers India has been a key player in providing engineering services for the oil, gas, and petrochemical industries, both domestically and internationally. The company’s robust performance in FY25 is largely driven by its strong order inflow from the core oil and gas sector, complemented by growing contributions from the infrastructure and green energy segments.

At the company's 59th Annual General Meeting (AGM), Chairperson and Managing Director Vartika Shukla announced that the order book stood at Rs 7,823 crore as of March 31, 2024. She highlighted that the domestic segment contributed significantly, adding Rs 2,907 crore in FY24. Engineers India recorded a total order inflow of Rs 3,406 crore during the previous fiscal year.

Shukla also pointed out the company’s diversification efforts, with increasing orders in green energy and biofuels. Engineers India is actively working on the Assam Biorefinery project, which aims to boost biofuel production in the region, showcasing the company’s commitment to sustainable energy.

International Expansion and Strategic Projects

In addition to its domestic success, Engineers India has made notable strides in international markets. The company has secured several major contracts, including Front-End Engineering Design (FEED) assignments for the AGRP revamp at the MAA refinery in Kuwait and an engineering design package for installing desalters at the Bahrain Petroleum Company (BAPCO) refinery in Bahrain. These international projects underscore Engineers India’s growing global footprint in the energy sector.

Stock Performance and Analyst Ratings

As of September 12, 2024, Engineers India shares have gained significant traction, following the announcement of its new business wins. The stock saw a 7% rise, boosting investor confidence as the company’s order book continues to expand.

Currently, seven brokerages cover Engineers India stock. Among them, four have issued a ‘buy’ rating, two recommend holding the stock, and one has a 'sell' rating. This indicates a generally positive outlook for the stock, reflecting its potential for future growth in both domestic and international markets.

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Engineers India’s focus on diversifying its portfolio beyond oil and gas into infrastructure, green energy, and biofuels positions it well for continued growth. The company’s strong order book, combined with its expanding international presence, offers investors a solid foundation for long-term value creation.

As India’s energy security initiatives, such as strategic crude storage, gain momentum, Engineers India is expected to play a crucial role in supporting the country’s energy infrastructure development. The company’s financial performance, driven by strategic projects and sustained order inflows, makes it an attractive stock to watch in the coming years.

[Disclaimer: The information provided in this article is based on publicly available data and market reports. Investors are advised to conduct their own research or consult with a financial advisor before making any investment decisions. Stock market investments are subject to market risks, and past performance is not indicative of future results.]