Engineers India share price: The multibagger scrip has rallied over 161 per cent in the past one year. On BSE, the stock saw heavy trading volume during the previous session.
Shares of Engineers India Ltd (EIL) snapped their four-day losing run on Thursday and settled 12.20 per cent higher at Rs 195.85. At this price, the multibagger scrip has rallied over 161 per cent in the past one year.
The entire PSU pack, including EIL, has experienced an extraordinary rally. A majority of these PSU counters have again staged a rebound after undergoing correction in the recent past.
On BSE, the stock saw heavy trading volume during the previous session as around 25.06 lakh shares changed hands. The figure was way more than the two-week average volume of 6.81 lakh shares. Turnover on the counter came at Rs 48.14 crore, commanding a market capitalisation (m-cap) of Rs 11,007.60 crore.
Technical analysts largely suggested the counter looked slightly bullish on daily charts. Support could be seen at Rs 185, followed by Rs 179 and Rs 175 levels. On the higher side, immediate resistance may be found at the Rs 220 zone.
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, “One can consider buying the stock around Rs 195 level for an upside target of Rs 220. Keep stop loss placed at Rs 185.”
Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, “The stock has witnessed a notable decline after hitting its peak level of Rs 273.80 last month on February 2. It has now shown a trend reversal, indicating a potential rebound towards the resistance level of Rs 220 in the upcoming sessions. Support could be seen near Rs 175. Investors may anticipate a bullish momentum in the short term.”
AR Ramachandran from Tips2trades said, “Engineers India is slightly bullish on daily charts with strong support at Rs 179. A daily close above its resistance zone of Rs 201 could lead to an upside target of Rs 238 in the near term.”
The counter traded higher than the 5-day, 100-, 150-day and 200-day simple moving averages (SMAs) but lower than the 10-day, 20-, 30-day and 50-day SMAs. The stock’s 14-day relative strength index (RSI) came at 45.19. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The company’s stock has a price-to-equity (P/E) ratio of 25.91 against a price-to-book (P/B) value of 4.88. Earnings per share (EPS) stood at 7.56 with a return on equity of 18.83.
As of December 2023, the government held a 51.32 percent stake in the state-run engineering consultancy firm.
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