Engineers India Ltd (EIL) has underperformed due to sluggish capex in the hydrocarbon space, lower crude oil prices during the pandemic and the drop in project execution led by the lockdown. Many of these issues if you look at them, are now behind.

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The improving order book position, assets to use surplus cash to improve capital allocation and marked progress in the financial performance in the last quarter are points worth noting.

During the December quarter, the public sector undertaking (PSU) reported a 22 percent sequential growth in revenue indicating improved execution as the COVID-19 lockdown restrictions were eased.

EIL’s project engineering segment which accounts for almost 51 percent of revenue delivered a strong 29 percent quarter-on-quarter growth.

In the special segment ‘Moneycontrol Pro Ideas For Profit’, moneycontrol.com’s Jitendra Gupta gets details on how the stock is expected to perform.

Watch the video for an in-depth analysis of EIL

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(Edited by : Ajay Vaishnav)

First Published:Feb 24, 2021 12:39 PM IST