PSU stock jumps 7% and hits fresh 52-week high, what’s driving the stock?

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PSU stock jumps 7% and hits fresh 52-week high, what’s driving the stock?

The shares of Engineers India Ltd. (NS: ENGI ) (EIL), a small-cap central public sector undertaking raced up 7.5% in the early hours of the trading session on Monday. The stock hit its fresh 52-week high of Rs 86.50 per share, giving the company a market value of Rs 4,800 crore.

Engineers India (EIL) is an engineering consultancy and EPC company founded in 1965. The company primarily provides project consultancy and EPC services in the oil & gas and petrochemicals industries primarily. It comes under the ownership of the Ministry of Petroleum and Natural Gas , Government of India.

Recently the CPSU was recently awarded the job for overall project management and engineering, procurement and construction management (EPCM) services for a refinery of Chennai Petroleum Corporation (NS: CHPC ) Ltd. (CPCL).

In another instance, EIL secured a contract from Mangalore (NS: MRPL ) Refinery & Petrochemicals Ltd. (MRPL) for putting together a basic engineering design package (BDEP), detailed feasibility report (DFR) and pre-project activities for a bio-ATF plant at MRPL.

The state-owned company has been in the news over the last few months. The shares of Engineers India have rallied 23% in the last month and over 41% in the previous six months.

EIL generated a consolidated net profit of Rs 75.16 crore in the September quarter (Q2 FY23), rising multi-fold from Rs 17.04 crore reported during the same period last year (Q2 FY22). Net sales surged 20.7% year on year (YoY) to Rs 793.06 crore in the quarter.

As of 30 September 2022, the Ministry of Petroleum and Natural Gas, Government of India held a 51.32% stake in the company.

Written By – Vikalp Mishra

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