Engineers India’s Share Price Rises Nearly 3% On Buyback Plan
The Government of India is the majority shareholder in Engineers India.
Engineers India Ltd. stock gained after the state-run company announced buyback of equity shares.
The board of Navratna PSU of the Government of India under the Ministry of Petroleum and Natural Gas will buy back 6.98 crore shares, equivalent to 11.06% equity stake, according to an exchange filing. The buyback price has been set at Rs 84 apiece, a 19.5% premium to Wednesday’s closing price. The government, according to the latest shareholding pattern, holds 51.5% stake in the company.
Besides, Engineers India reported a 37% year-on-year rise in net profit at Rs 92.7 crore in the quarter ended September. That’s in line with the Rs 95-crore consensus analyst forecast. The company’s bottom line was aided by a deferred tax gain of Rs 7.2 crore during the period.
Its revenue, however, declined 6% over the year earlier to Rs 683.4 crore, against the estimated Rs 636.5 crore.
Engineers India Q2 Results 2020-21: Other hHighlights (year-on-year)
- The earnings, before, interest, tax, depreciation and amortisation fell 18% to Rs 130.8 crore, against the Rs 72.6-crore forecast.
- Operating margin contracted 290 basis points to 19.1%.
- Revenue from the company’s consultancy and engineering projects business was down 2% to Rs 345.2 crore.
- Revenue from the turnkey projects business fell 9% to Rs 338.1 crore.
Of the 14 analysts tracking Engineers India, 13 have a ‘buy’ rating and one suggests ‘reduce’. The average of Bloomberg consensus 12-month target price implies an upside of 27.7%. Shares of the company gained as much as 2.8% but cooled off to currently trade 0.7% higher.