Engineers India secures 2 international orders worth Rs 730 crore; stock reacts

Engineers India Ltd (EIL) on Tuesday bagged a couple of international orders with a combined estimated contract value of Rs 730 crore. "Middle East clients have awarded two contracts for PMC Services and for Engineering & Project Management Services Agreements to EIL. Total estimated contract value of these two orders is approx Rs 730 crore," the PSU stated in a BSE filing. The project for PMC Services and Engineering & Project Management Services are valued at Rs 650 crore and Rs 80 crore, respectively.

After the order win, EIL shares jumped 4.53 per cent to hit a day high of Rs 173.95. The stock was last seen trading 0.78 per cent up at Rs 167.70. At this price, it has slipped 8.98 per cent on a year-to-date (YTD) basis.

Around 2.42 lakh shares changed hands on BSE at the time of publishing this story. The figure was lower than the two-week average volume of 3.78 lakh shares. Turnover on the counter came at Rs 4.11 crore, commanding a market capitalisation (m-cap) of Rs 9,394.54 crore.

On technical setup, the counter traded higher than the 5-day, 10-, 20-, 30-day and 50-day simple moving averages (SMAs) but lower than the 100-day, 150-day and 200-day SMAs. Its 14-day relative strength index (RSI) came at 55.17. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 30.02 against a price-to-book (P/B) value of 3.95. Earnings per share (EPS) stood at 5.57 with a return on equity (RoE) of 13.14. According to Trendlyne data, EIL has a one-year beta of 1.9, indicating high volatility.

As of December 2023, the government held a 51.32 per cent stake in the state-run engineering consultancy firm.