1 Split, 2 Bonus Issues, Rs 3/Share Dividend: Buy Multibagger PSU, TP 292; MoU For AI Inked

Brokerage firm Axis Securities has recommended buy call to Multibagger Navratna PSU Engineers India Ltd shares with target price of Rs 292 apiece. Current market price of Engineers India share on BSE is Rs 218.35 per share with intraday fall of 2.00%. Engineers India shares offered stunning returns of 190% in last 1-year and 55% in last 6-months. Engineers India declared dividend amounting to Rs 3/share dividend in last 1-year.

The PSU announced 2 bonus issues and conducted stock split once in the ratio of 2:1. The company inked an MoU today with Detect Technologies Private Limited. Check details below pertaining to Engineers India Ltd:

Engineers India Ltd inks MoU With Detect Technologies Private Limited: The company issued a BSE filing stating, "Engineers India Limited (EIL) and Detect Technologies Private Limited have signed a Memorandum of Understanding (MoU) for Real Time Artificial Intelligence (AI) based Monitoring for Implementing Safe Practices at Construction Sites and Progress Monitoring for the Clients in India and abroad."

"This MoU underscores EIL's commitment to ensuring the utmost safety standards across projects. By leveraging cutting-edge digital technologies, we aim to enhance safety, mitigate risks, and drive sustainable development in our operations" CMD EIL, Ms. Vartika Shukla commented.

Engineers India Dividend History: Engineers India declared 42 dividends since August 30, 2001.In the past 12 months, Engineers India announced an equity dividend amounting to Rs 3.00 per share. At the current share price of Rs 218.3500, Engineers India offers a dividend yield of 1.37%.

Engineers India Stock Split History: Engineers India split face value once since May 6, 2010. Engineers India last split face value of its shares from Rs 10 to Rs 5 in 2010.The share traded ex-split on May 6, 2010, according to Trendlyne.

Engineers India Bonus History: Engineers India offered 2 bonus issues since May 6, 2010. Last Bonus that Engineers India Ltd declared was in the ratio 1:1 with ex-date fixed as December 30, 2016.

Buy Engineers India Shares: Axis Securities has recommended buy call with target price Rs 281-292 per share and keep stop loss at Rs 218 per share. On the weekly chart, EIL broke out above the Multi-Year Resistance zone around 206 with a bullish candle, indicating the continuation of a medium-term uptrend.

Engineers India Technical: Score is 68.28 indicating stock is technically moderately strong. Stocks with score between 60 and 70 are considered as technically moderately strong. RSI is 54.3, RSI below 30 is considered oversold and above 70 overbought. MFI is 82.6, MFI above 80 is considered strongly overbought. This implies that stock may show pullback. Number of MF schemes increased from 12 to 13 in December 2023 quarter. Mutual Funds have decreased holdings from 9.97% to 9.63% in Dec 2023 quarter, according to Trendlyne.

Engineers India Financials: The company declared its revenue from operation surged by 3.02% to Rs 867.64 crore for the December quarter from Rs 842.18 crore declared in the similar quarter of last year. Meanwhile, profit before tax jumped by 3.52% year on year (YoY) to Rs 71.44 crore for the quarter ended December 31, 2023. Its revenue from Consultancy & Engineering Projects surged 2.37% YoY to Rs 370.37 crore and income from Turnkey Projects was at Rs 497.27 crore, up 3.52% YoY.

The company declared that for 9M FY24, its consolidated net profit rose 111.24% YoY to Rs 329.73 crore. Revenue surged marginally to Rs 2475.72 crore in 9M FY24 from Rs 2450.04 crore declared in 9M FY23, according to the company's BSE filing.

LIC Trimmed Stake: It is worth noting here that Life Insurance Corporation of India (LIC) trimmed stake in Engineers India by approximately 2% through open market in November 2023. LIC divulged in its BSE filing dated November 23, 2023 that it has sold 1.14 crore shares of the PSU during the period from February 2, 2021 to November 22, 2023 at an average price of Rs 118.08 apiece. Consequently, LIC's entire stake in Engineers India fell to 3.122% from the earlier 5.155%.

About Engineers India: Engineers India Ltd (EIL) is a leading global engineering consultancy and EPC company. Established in 1965, EIL provides engineering consultancy and EPC services principally focused on the oil & gas and petrochemical industries. Engineers India Ltd (EIL), a Navratna PSU, is one of the leading design and engineering organizations in South Asia, according to its Linkedin profile.

Disclaimer: The stock has been picked from the brokerage report of Axis Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.