EIL Company Analysis

Ticker : 532178/ ENGINERSIN

ISIN : INE510A01028

Oil and Gas is Core industry for any growing Economy. The consumption of Oil and Gas per head also give important information about the development of the economy. To Fulfill Increasing Demand Of Oil and Gas, It is important to Search and drilling of Oil Reserves. Here Upstream Oil companies need Collaboration of Engineering companies with specialisation. Engineers India limited is one of the company which is operating in Oil & Gas Sector mainly but also having project in Alumina And aluminium smelting and Purification, Energy and others in 22 Counties.

SECTOR Overview :

Picture credit IBEF.org

India is forth largest consumer of oil and Gas. But As the onshore Production of Oil and Gas is not sufficient. Indian companies finding new ways to fulfill the demand. Due to Govt support, Indian companies make India leader in Oil refining Business.

India’s economic Growth is closely related to Energy demand. so it is anticipated that demand for Oil and Gas is anticipated to grow more with development and increase in capacity of Expenditure. Big part of India is living in rural areas and to give them Better life is one of the important objective of Central and State Government. Replacement of old way of cooking Which include from Cow-dung to Wood with LPG is part of it. All because of it, it is expected that the consumption of LPG and Crude Oil will increase. Extra Supply and demand need the engineering support, to counter the set-up.

Company Overview : Engineers India limited, Navratna Company is operating in Engineering and Construction related with Hydrocarbon like Oil and Gas. The company is Public Sector Undertaking and come under ministry of Petroleum and Natural Gas. The company is diversified. The sector of the Company is as below.

  • Petroleum Refining, Petrochemicals and Fertiliser
  • On and offshore Oil and Gas
  • Mining, Infrastructure
  • Thermal Power, nuclear power
  • City Gas distribution
  • Water and Waste Management

The company offers variety of services mainly Project management, Engineering, Designing of the Project, Environmental Engineering, Information Technology, Refinery Optimisation etc.

SHAREHOLDING PATTERN 

Financial performance & Ratios : 

 2010-112011-122012-132013-142014-152015-16
Revenue2823.283698.822505.971823.5917131495.84
Net Profit522.52636.32628.58479.76307.98258.31
Net Profit Margin %18.517.2025.0826.3017.9717.26
EPS ₹15.5118.8918.6614.249.147.67
Dividend Payout %32.2431.7732.1645.6454.7052.17
Dividend/ share5666.554
ROE36.2334.5028.0919.4811.999.69
ROCE35.7134.0427.7819.3111.909.60
ROA15.0616.9916.3412.797.866.33
Asset Turnover81.3898.7965.1848.6243.7436.67
Book Value42.8054.7366.4173.0676.2179.10

Corporate Governance : Corporate Governance is not a big Issue when there is CAG (Comptroller Auditor General Of India) Keeping watch. Generally Corporate Governance is an issue when there is one big Entity holding big chunk. Here it is Government and there are many Mutual Funds and other entities.
Future Prospectus : As the Company is well known and Operating all over the world, the future is bright. Foreign Investors and Insurance Companies generally known as long term investor. The sector, Oil and Gas in which it is operating is important for Growth and development of any Economy. As the OMCs are Preparing for Big Capital Expenditure, Engineers India will prove as big beneficiary.

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About Ashutosh Tilak

Tracking Indian Capital Market since 2010. Finance Student, On this blog I am writing about finance and Investing. You can contact me analystashu@gmail.com or @androidashu & @InsideFinanc on twitter