This PSU stock gains over 21% in a month; check brokerage target, technical outlook
According to a domestic brokerage, the PSU's consultancy revenue grew 22 per cent year-on-year (YoY), while segment margins also expanded.
- Sep 2, 2026,
- Updated Sep 2, 2026 12:27 PM IST
Shares of Engineers India Ltd (EIL) were trading lower in Wednesday's session, declining 1.96 per cent to Rs 274.60 at the last check. Despite the decline, the PSU stock has gained 21.08 per cent over the past month and 35.50 per cent year-to-date (YTD).
Brokerage 360 ONE Capital maintained its 'Buy' rating on EIL and raised its target price to Rs 306 from Rs 295. The domestic broking firm said, "EIL delivered a strong quarter with significant margin expansion, as the shift towards the higher-margin Consultancy business drove EBITDA margins to 14.8 per cent, well ahead of expectations despite muted revenue execution."
According to the brokerage, consultancy revenue grew 22 per cent year-on-year (YoY), while segment margins also expanded. It said EIL remains confident about its growth outlook and has retained its Rs 8,000 crore FY27 order inflow and 10 per cent-plus revenue growth guidance.
Consultancy is expected to account for more than 50 per cent of new orders, according to the brokerage, which also said the business could drive further margin improvement.
360 ONE Capital has increased its FY27E EPS estimates by 8.5 per cent, while keeping its FY28E estimates unchanged.
Technical view
Rajesh Palviya, Head of Research at Axis Direct, said EIL remains in a strong uptrend, forming a series of higher tops and bottoms.
"It has decisively surpassed the 'multiple resistance' zone of Rs 267 on a closing basis, accompanied by huge volumes indicating increased participation," Palviya added.
"Investors should consider buying, holding, and accumulating this stock," Palviya also said.
According to Palviya, EIL has an expected upside range of Rs 300-330, while the downside support zone is at Rs 270-265.
As of June 2026, the government held a 51.32 per cent stake in the state-run engineering consultancy firm.
Shares of Engineers India Ltd (EIL) were trading lower in Wednesday's session, declining 1.96 per cent to Rs 274.60 at the last check. Despite the decline, the PSU stock has gained 21.08 per cent over the past month and 35.50 per cent year-to-date (YTD).
Brokerage 360 ONE Capital maintained its 'Buy' rating on EIL and raised its target price to Rs 306 from Rs 295. The domestic broking firm said, "EIL delivered a strong quarter with significant margin expansion, as the shift towards the higher-margin Consultancy business drove EBITDA margins to 14.8 per cent, well ahead of expectations despite muted revenue execution."
According to the brokerage, consultancy revenue grew 22 per cent year-on-year (YoY), while segment margins also expanded. It said EIL remains confident about its growth outlook and has retained its Rs 8,000 crore FY27 order inflow and 10 per cent-plus revenue growth guidance.
Consultancy is expected to account for more than 50 per cent of new orders, according to the brokerage, which also said the business could drive further margin improvement.
360 ONE Capital has increased its FY27E EPS estimates by 8.5 per cent, while keeping its FY28E estimates unchanged.
Technical view
Rajesh Palviya, Head of Research at Axis Direct, said EIL remains in a strong uptrend, forming a series of higher tops and bottoms.
"It has decisively surpassed the 'multiple resistance' zone of Rs 267 on a closing basis, accompanied by huge volumes indicating increased participation," Palviya added.
"Investors should consider buying, holding, and accumulating this stock," Palviya also said.
According to Palviya, EIL has an expected upside range of Rs 300-330, while the downside support zone is at Rs 270-265.
As of June 2026, the government held a 51.32 per cent stake in the state-run engineering consultancy firm.