Why Engineers India Share Price is Rising

India's infrastructure sector is booming. Think high-speed rail projects and smart city initiatives - the government is investing heavily in creating a modern, connected India.

This surge in activity is a goldmine for companies with the skills to build these projects.

That's where Engineers India comes in. It is a prominent public sector undertaking (PSU) that is right at the center of this infrastructure revolution.

Its share price has skyrocketed over 140% in just one year. This upward trend continued in 2024 with a 60% increase so far. But there's more.

The company just grabbed investor attention again with a 14% rally in its share price over the past month.

So, what's driving this latest surge?

Let's explore the reasons behind Engineers India's recent rally.

#1 Upcoming Budget

Lately, Engineers India share price is rising due to investor expectations surrounding the upcoming budget.

Investors are optimistic that the government will announce significant initiatives related to the infrastructure sector, which would directly benefit the company given its strong position in this field.

It has a solid track record of achievements, which underpins this investor confidence. The company is deeply involved in the Indian government's National Infrastructure Pipeline, which aims to invest US$ 1.4 trillion in infrastructure by 2025.

Its expertise in projects such as dedicated freight corridors, high-speed railways, and smart cities aligns perfectly with the anticipated government announcements.

Furthermore, the company's active participation in renewable energy projects, including solar, wind, and hydrogen, positions it to take advantage of the growing emphasis on green energy.

This diversification and adaptability have strengthened the company's reputation and reliability in the market.

#2 Heavy Order Book

Engineers India has a substantial order book. As of 31 March, 2024, the company's order book stands at Rs 78.2 billion (bn), comprising diverse projects across the hydrocarbon, petrochemicals, fertilizers, infrastructure, and renewable energy sectors.

With 30% of orders from the private sector and 70% from the public sector, the company demonstrates its ability to cater to various client needs.

Key projects include refinery expansions, high-speed railways, smart cities, and renewable energy initiatives such as solar, wind, and hydrogen. Its strategic international presence, especially in the Middle East, further strengthens its order book.

The company is also actively bidding for high-value projects in emerging sectors like coal gasification, compressed biogas (CBG), and green hydrogen, positioning itself for future growth and sustained success.

As it continues to secure and execute large-scale projects, it is well-poised to capitalise on emerging opportunities and drive sustained growth.

What Next?

Engineers India has already secured orders worth Rs 12.3 bn in the current financial year, with additional projects in the pipeline.

It is actively bidding for major petrochemical complexes and international projects, which are expected to be finalised in the coming months. These projects will further bolster the company's already impressive order book and enhance its market position.

The company is involved in various studies and pilot projects related to these sunrise sectors, expecting them to contribute significantly to future revenue streams.

This strategic focus ensures the company stays ahead of the curve in adopting new technologies and sustainable practices.

In the realm of green hydrogen, the company is leveraging its expertise to participate in pilot projects that could revolutionise energy production and consumption in India.

The company's involvement in coal gasification projects aims to provide cleaner alternatives to traditional energy sources. Additionally, the development of compressed biogas projects aligns with India's renewable energy goals, offering sustainable and eco-friendly energy solutions.

The company is exploring new markets and expanding its footprint globally, allowing it to tap into diverse projects and client bases.

This global outreach not only diversifies its revenue streams but also enhances its capability to manage large-scale international projects.

How Engineers India Share Price has Performed Recently

In the past five days, Engineers India share price has rallied 7.9%. In the last month, it is up 14.2%.

In 2024, so far its share price has surged 60.8% and its up 140.6% in the last one year.

The stock touched its 52-week high of Rs 304 on 12 July 2024 and a 52-week low of Rs 116.5 on 26 October 2023.

About Engineers India

Engineers India is a leading global engineering consultancy and project management company. Established in 1965, the company provides engineering consultancy and EPC services principally focused on the oil & gas and petrochemical industries.

The company has also diversified into sectors like infrastructure, water and waste management, solar and nuclear power and fertilizers to leverage its strong technical competencies and track record.

The company's overseas presence is marked by an engineering office in Abu Dhabi, which caters to the business needs in UAE/Middle-East region. Additionally, there are offices in London, Milan and Shanghai to coordinate the activities of international procurement and marketing.

For more details about the company, you can have a look at Engineers India factsheet and quarterly results on our website.

For a sector overview, read our engineering sector report.

You can also compare Engineers India with its peers.

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And to know what's moving the Indian stock markets today, check out the most recent share market updates here.

Happy Investing.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...