Engineers India Limited

Industrials — Engineering & Construction · NSE

₹273.45−₹3.60 (−1.30%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:48 pm

Understanding the Business

Company site ↗

The 60-second version of Engineers India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Engineers India Limited, an engineering consultancy company, provides design, engineering, procurement, construction, and integrated project management services for oil, gas, fertilizers, steel, railways, power, infrastructure, and petrochemical industries worldwide.

IndustryEngineering & Construction

SectorIndustrials

Employees2,747

Annual revenue₹3,928 Cr

How does it make money?

Turns over ₹3,928 Cr a year. Of every ₹100 of sales, about ₹18 reaches shareholders as profit, with ₹24 left at the operating level before interest, tax and depreciation. Each of its 2,747 employees supports ₹1.43 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.43 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 28.1%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 22.0% against a peer median of 14.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE14.1%

What is the outlook?

4 analysts covering the stock expect revenue to grow about 24.3% and earnings to grow about 20.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+24.3%

Est. earnings growth+20.8%

Analysts4

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +18% while net margin moved +69% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+18%

Margin effect+69%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 0.95 — moves roughly with the market
✗ Small Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

77/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

67/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

19.6x

3Y Median

23.9x

40 monthly readings · mean 25.5x · range 16.7x–42.5x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 18% below its 3y median of 23.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 35% below the peer median of 30.1x.

vs. its own history

Fair

23.9x median over 40 months · -18%

vs. sector peers

Cheap

30.1x median of 3 peers · -35%

vs. generic bands

Fair

15x–35x

EV/EBITDA

16.5x

PEG

0.76

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 14.2% to 23.7% over 3 years.
Debt is being paid down
Total debt is down 11% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 17.7% to 22.0%.
Return on capital is rising
ROCE has improved from 22.5% to 28.1%.
High return on capital employed
ROCE of 28.1% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 28.1% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 14.2% to 23.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 35% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 5.7% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 22%✓ 23.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 5.7% CAGR
Latest reported year was -5.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹250 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 25%✓ 28.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

11 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹15,369 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

19.6x

Fair

Fairly valued against the generic band

P/B Ratio

4.90x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹13.95

Profitable

Profitable on a per-share basis

ROE

22.0%

Strong

Strong capital efficiency

ROCE

28.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.53x

Low

Conservative leverage

Revenue Growth (YoY)

-5.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

142.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.83%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹250 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

19.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

14.2%

Average

Average margins

Net Margin

20.2%

Good

Strong bottom-line conversion

Current Ratio

1.30

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.95

Market-like

Moves roughly in line with the market

52W Range Position

70%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

297.8 / 273.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

22.6

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3,328 Cr	₹3,282 Cr	₹3,088 Cr	₹3,928 Cr	+5.7%
EBITDA	₹471 Cr	₹506 Cr	₹773 Cr	₹929 Cr	+25.4%
EBITDA Margin	14.2%	15.4%	25.0%	23.7%	—
PAT (Net Profit)	₹346 Cr	₹445 Cr	₹580 Cr	₹692 Cr	+25.9%
EPS	₹6.16	₹7.92	₹10.32	₹12.3	+25.9%
ROE	17.7%	19.7%	21.7%	22.0%	—
ROCE	22.5%	20.9%	27.4%	28.1%	—
Total Debt	₹19 Cr	₹33 Cr	₹22 Cr	₹17 Cr	-3.8%
Free Cash Flow	-₹147 Cr	₹188 Cr	₹75 Cr	₹250 Cr	—

🟢 Revenue has grown at 5.7% a year over 3 years.

🟢 EBITDA has grown at 25.4% a year over 3 years.

🟢 EBITDA Margin has risen from 14.2% to 23.7% over 3 years (+9.5 pts).

🟢 PAT (Net Profit) has grown at 25.9% a year over 3 years.

🟢 EPS has grown at 25.9% a year over 3 years.

🟢 ROE has risen from 17.7% to 22.0% over 3 years (+4.3 pts).

🟢 ROCE has risen from 22.5% to 28.1% over 3 years (+5.6 pts).

🟢 Total Debt has shrunk at 3.8% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹147 Cr to ₹250 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹5,869 Cr

Total Liabilities

₹2,724 Cr

Cash & Equivalents

₹88 Cr

Operating Cash Flow

₹319 Cr

Capex

-₹69 Cr

Shareholding (proxy)

Institutional Holding

18.7%

Insider Holding

51.4%

Corporate Actions

Dividend Rate

₹5

Ex-Dividend Date

24 Sept 2026

Analyst Consensus

Recommendations

5 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹299

+9.3% vs CMP

Target Range

₹240 – ₹373

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

1 positive1 mixed4 general

Deepak Builders & Engineers India (NSEI:DBEIL) - Stock Analysis

Simply Wall Street, 14 Oct

Engineers India shares soar 6% to hit 52-week high; Here’s why the stock rallied

Upstox, 22 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Engineers India Share Price: yearly high and price action

Univest, 22 Sept

Engineers India, Mankind, Galaxy Surfactants: Top stocks to buy; check price targets & stop loss

Business Today, 05 Oct

Engineers India Dividend: Last Day to Buy Shares for ₹2.50 Per Share Payout; Stock Gains 16% in 5 Days

Goodreturns, 23 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Stock Radar: Engineers India stock hits fresh record high in September after decisive breakout; time to bu

The Economic Times, 06 Oct

Watch Items

Revenue growth is negative (-5.8%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability

MiddlingGrowth · Valuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

All 5 tripwires holding · see Key things to watch ↑