EIL ltd

• Engineers India Limited (EIL) was established in 1965 to provide engineering and related technical services for petroleum refineries and other industrial projects. It has now diversified into other fields such as pipelines, petrochemicals, oil and gas processing, offshore structures and platforms, fertilizers, metallurgy and power.

 

• EIL now provides a complete range of project services in these fields and has emerged as Asia's leading design and engineering company. It has got into more lucrative fields like Highways & Bridges, IT, Airports, Mass Rapid Transport Systems, Ports & Terminals, Power Projects, Non-conventional / Renewable Energy Sources, Specialist Materials and Maintenance Services, Intelligent Buildings, Water and Urban Development.

 

• Till date, the company has implemented 7 petrochemical complexes, 37 pipeline projects, 200 offshore platforms, 35 oil and gas processing plans, 26 mining and metallurgical projects, 11 ports and terminals, 8 fertiliser projects, 12 infrastructure projects and 14 turnkey projects.

 

• Besides its Head Office at New Delhi , EIL has branch office at Mumbai, zonal office at Kolkata, regional offices at Chennai and Vadodara and inspection offices at all major equipment manufacturing locations in India. It also has overseas offices at London , Abu Dhabi, Kuwait , Qatar, Malaysia and Australia.

 

• EIL has two wholly owned subsidiaries, EIL Asia Pacific Sdn Bhd in Malaysia and Certification Engineers International Ltd. for undertaking independent certification & third party inspection assignments.

 

• It has strategic alliances with domestic as well as international players like Petronet LNG for overseas LNG projects, China National Machinery Import and Export Corporation for power projects.

 

• The company secured an order from Abu Dhabi Polymers Company, for the construction of petrochemical complex in Abu Dhabi. The order is stated to be valued at US$27 million.

 

• The company is expected to clock its half year for current fiscal with an order book position of Rs.2000 crore of which 20% comes from overseas. This is extremely positive given the fact that for the entire fiscal of 2006-07, its order book was at Rs.2,500 crore.

 

• The company plans to concentrate on petroleum refining, followed by allied hydrocarbon sectors and infrastructure sector. The company has been doing particularly well in urban and airport development projects.

 

• The company, despite being 43 years has managed to adapt to the changing world. Its success ingredient has been the track record of assimilation and adaptation of acquired technologies. The company is now developing its new technologies and it has successfully managed to develop a technology for Diesel Hydrotreating and it is now being implemented on a commercial basis, which s expected to contribute to its bottomlines this fiscal.

 

• For the first quarter ended 30^th June 2007 , the company posted a substantial jump in net profit by 36.84% at Rs 38.07 crore, from Rs 27.82 crore last Q1. Net sales for Q1 was up 2.56% to Rs 150.49 crore. On an equity of Rs.56.16 crore, EPS for Q1, was up 36.97% at Rs 6.78 compared with the same quarter, last year.

 

• 90% of the equity is held by Government of India and of the 10% floating stock, 5.96% is held by the institutional investors. So there is actually just 4.03% stock in the public. .

 

• For FY 08, the EPS may be close to Rs.40. The share presently ruling at Rs.550 is discount below 14 times, which is way below for an engineering consulting giant. Based on FY 09, PER would be close to 10.

 

• A very sound and solid company to hold in the portfolio. Those looking for steady and sustained stocks, which would insulate you from the current vagaries of the stock market, EIL is one of the best picks, which can give 50% return in 12 months.