Shares of Engineers India Ltd (EIL) have demonstrated robust performance, climbing over 21.08 percent in the past month and 35.50 percent year-to-date, despite a recent session dip. This impressive rally has prompted a positive outlook from domestic brokerages, with 360 ONE Capital maintaining a 'Buy' rating and increasing its target price for the public sector undertaking (PSU) stock.
Brokerage Outlook and Financial Drivers
According to 360 ONE Capital, EIL delivered a strong quarter, driven by a strategic shift towards higher-margin consultancy services. This shift propelled EBITDA margins to 14.8 percent, surpassing expectations even amidst moderate revenue execution.
- Consultancy Revenue Growth: The brokerage highlighted a 22 percent year-on-year (YoY) growth in consultancy revenue.
- Margin Expansion: Segment margins have also expanded significantly, contributing to the overall improved financial performance.
- Future Order Inflow: Consultancy is projected to account for more than 50 percent of new orders, a trend expected to further enhance margin improvement.
The firm has consequently raised its FY27E EPS estimates by 8.5 percent, affirming confidence in EIL's growth trajectory and its guidance of Rs 8,000 crore in FY27 order inflow and over 10 percent revenue growth.
Technical Analysis Points to Continued Uptrend
Rajesh Palviya, Head of Research at Axis Direct, noted that EIL remains in a strong uptrend, characterized by a series of higher tops and bottoms. The stock has decisively breached the 'multiple resistance' zone of Rs 267 on a closing basis, supported by substantial trading volumes, indicating heightened investor participation.
Palviya advises investors to consider buying, holding, and accumulating the stock, projecting an expected upside range of Rs 300-330. The downside support zone is identified between Rs 270-265.
Government Stake
As of June 2026, the Indian government holds a significant 51.32 percent stake in Engineers India Ltd, underscoring its public sector status and strategic importance.