Engineers India Ltd.
ISIN: INE510A01028 • Market Cap: ₹13,318 Cr
The 5-Pillar Quality Audit for Engineers India Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (19.4%), Return on Capital Employed (24.0%), and equity compounding (21.7%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (5.2%) and 3Y PAT CAGR (25.6%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 16.98 vs PEG of 1.77 and Dividend Yield of 2.1%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 51.3%, backed by 23.4% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 24.0%)
Engineers India Ltd. generates exceptional return on capital employed of 24.0%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 21.7%)
Shareholder equity compounds at a healthy 21.7%, exceeding average Indian equity benchmarks.
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
High-Velocity Profit Compounding (3Y PAT CAGR: 25.6%)
Net earnings have compounded at 25.6% annualized, demonstrating operating leverage.
Attractive Valuation Margin (P/E: 16.98)
Trading at a P/E multiple of 16.98, the stock offers a favourable risk-reward entry for quality compounding.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Construction)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Construction space.
Quantitative Strategy Eligibility
Checking ENGINERSIN against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 80/100 and clean gearing.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Construction Sector Peer Comparison
Compare ENGINERSIN directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Engineers India Ltd. (ENGINERSIN)Current | 80/100 | ₹13,318 Cr | 16.98 | 24.0% | 0.00 | — |
| Larsen & Toubro Ltd. (LT) | 69/100 | ₹5.54 Lakh Cr | 33.42 | 17.9% | 1.12 | View |
| Rail Vikas Nigam Ltd. (RVNL) | 48/100 | ₹46,517 Cr | 51.71 | 10.3% | 0.49 | View |
| NBCC (India) Ltd. (NBCC) | 79/100 | ₹23,571 Cr | 31.74 | 38.8% | 0.00 | View |
| Kalpataru Projects International Ltd. (KPIL) | 76/100 | ₹23,516 Cr | 20.69 | 22.9% | 0.43 | View |
| IRB Infrastructure Developers Ltd. (IRB) | 70/100 | ₹22,912 Cr | 24.01 | 6.0% | 0.96 | View |
Frequently Asked Questions: Engineers India Ltd.
Q:What is the 5-Pillar Fundamental Score for Engineers India Ltd. (ENGINERSIN)?
Engineers India Ltd. has a RupeeTools Fundamental Score of 80/100, placing it in the 'Exceptional Quality' category. Its pillar scores are: Profitability (87/100), Financial Health (86/100), Growth (72/100), Valuation (73/100), and Ownership Quality (78/100).
Q:Is ENGINERSIN fundamentally strong for long-term investment?
Yes, ENGINERSIN exhibits solid fundamental strength with a 80/100 score, driven by a return on equity of 21.7% and a debt-to-equity ratio of 0.00.
Q:Does ENGINERSIN pass the Coffee Can Investing filter?
No. ENGINERSIN does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does ENGINERSIN compare against other Construction peers?
Within India's Construction sector, ENGINERSIN trades at a P/E of 16.98 and generates an ROCE of 24.0%. Compare its 5-Pillar score of 80/100 against top sector peers like Larsen & Toubro Ltd. (69/100), Rail Vikas Nigam Ltd. (48/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.