Operating Margin

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Price: 178.55 INR -1.14% Market Closed

Market Cap: 100.4B INR

15.4%

Improving

by 5%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

15.4%

Operating Income

₹5.5B

Revenue

₹35.7B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

15.4%

Operating Income

₹5.5B

Revenue

₹35.7B

Peer Comparison

Country		Company	Market Cap	Operating Margin
IN		Engineers India Ltd NSE:ENGINERSIN	100.4B INR	Loading...
FR		Vinci SA PAR:DG	64.4B EUR	Loading...
US		Quanta Services Inc NYSE:PWR	69.3B USD	Loading...
IN		Larsen & Toubro Ltd NSE:LT	5.2T INR	Loading...
IN		Larsen and Toubro Ltd F:LTO	48.4B EUR	Loading...
ES		Ferrovial SA MAD:FER	40.9B EUR	Loading...
NL		Ferrovial SE AEX:FER	40.9B EUR	Loading...
US		Comfort Systems USA Inc NYSE:FIX	40B USD	Loading...
US		EMCOR Group Inc NYSE:EME	31.5B USD	Loading...
DE	H	Hochtief AG XETRA:HOT	26.4B EUR	Loading...
CN	C	China State Construction Engineering Corp Ltd SSE:601668	209.9B CNY	Loading...

Market Distribution

Min	-153 833.3%
30th Percentile	2.7%
Median	7.3%
70th Percentile	13.2%
Max	9 977%

Other Profitability Ratios

Engineers India Ltd
Glance View

Economic Moat

None

Market Cap

100.4B INR

Industry

Construction

Engineers India Ltd. (EIL) stands as a prominent player in the realm of engineering consultancy and project implementation services, having carved out an impressive niche within the infrastructure and energy sectors. Born in 1965, EIL emerged as a dynamic force with a mandate to provide indigenous engineering solutions for India's evolving technological landscape. Over the decades, it broadened its horizons, specializing in the hydrocarbon sector, including upstream oil, gas, and pipelines, while also venturing confidently into petrochemicals, power, and infrastructure projects. This multifaceted approach allowed Engineers India Ltd. to build a solid reputation for delivering comprehensive engineering solutions involving project management, process design, and construction supervision. Its expansive portfolio, which incorporates both public and private sector engagements, demonstrates a critical understanding of India's growing infrastructure needs. The financial lifeblood of Engineers India Ltd. flows from its core capabilities in consultancy and turnkey project services, creating a business model grounded in leveraging its technical expertise to navigate complex projects. On the consultancy side, EIL generates revenue by offering high-end design, engineering, and project management services, drawing on its decades of experience and extensive domain knowledge. For turnkey projects, the company assumes responsibility from conceptualization to commissioning, which not only challenges it to maintain operational efficiency but also allows it to capture a more significant portion of the project value chain. This combined model of consultancy and turnkey project execution has enabled EIL to achieve steady growth, balancing the predictability of consulting revenue with the substantial, albeit riskier, gains from turnkey projects. Such a strategy has established it as a leader, not just in executing projects but in continually shaping the future of India's energy and infrastructure development.

View ENGINERSIN Analysis

ENGINERSIN Intrinsic Value

Undervaluation 20%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Engineers India Ltd
NSE:ENGINERSIN

Peer Comparison

Market Distribution

Other Profitability Ratios

Engineers India Ltd
Glance View

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Engineers India Ltd NSE:ENGINERSIN