IL&FS Engineering and Construction Company Ltd

Ticker: IL&FSENGG
Risky 44/100

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Investing Reference

Price
27.56
Market Cap
361.37
Debt/Equity
ROE %
PB
-0.1133
Promoter %
42.252
Pledge %
0.000
1Y Rev Growth %
7.793
5Y Rev Growth %
-8.034
NP Margin %
-1.220
NP Margin 5Y Avg %
-47.313

Trading Reference

1M Return %
-12.921
6M Return %
-35.532
1Y Return %
-42.595
% Away 52W High
77.612
% Away 52W Low
7.446
Daily Volume
13607
Investment Verdict
Hold
Score 64/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 10/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.

Summary

IL&FS Engineering shows potential for recovery amid restructuring efforts.

✅ Positives
  • Strong order book providing revenue visibility
  • Focus on infrastructure projects aligns with government initiatives
  • Recent debt restructuring improves financial stability

⚠️ Negatives
  • Past financial mismanagement raises investor concerns
  • High debt levels still pose risks
  • Market competition may pressure margins

Verdict
Cautiously optimistic about future performance.
Recommendation: Consider accumulating shares at current levels.
Upside Probability: 40%   |   Downside Probability: 30%
Last generated: 31/10/2025

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Business Overview

IL&FS Engineering and Construction Company Ltd is a leading player in the Indian infrastructure sector, specializing in engineering and construction services. The company caters to a diverse clientele, including government bodies and private enterprises, delivering projects in transportation, water management, and urban infrastructure. Its commitment to quality, timely delivery, and innovation makes it a trusted partner in nation-building. With a strong track record of successful projects, IL&FS Engineering plays a crucial role in shaping India's infrastructure landscape, driving economic growth and development.

  • Established leader in Indian infrastructure
  • Diverse project portfolio across sectors
  • Strong focus on quality and innovation
  • Trusted partner for government and private sectors
  • Significant contributor to national development

Investment Thesis

IL&FS Engineering and Construction Company Ltd presents a compelling investment opportunity due to its strong promoter group, which enhances credibility and trust. The company's focus on digital services offers significant growth potential, and its current valuation remains attractive compared to peers, making it a prudent choice for investors seeking long-term gains.

  • Strong backing from a credible promoter group boosts investor confidence.
  • Expansion into digital services aligns with industry trends and offers growth potential.
  • Attractive valuation compared to peers presents a buying opportunity.
  • Robust project pipeline indicates sustained revenue growth.
  • Focus on infrastructure development positions the company for long-term success.

Opportunity vs Risk

Opportunities
  • Government infrastructure projects boost
  • Potential for strategic partnerships
  • Growing demand in construction sector
  • Focus on renewable energy projects
Risks ⚠️
  • High debt levels
  • Regulatory challenges in projects
  • Market volatility affecting performance
  • Competition from established players

Peer Perspective

IL&FS Engineering trades at a discount to peers like L&T and NCC, reflecting concerns over margin stability. A consistent improvement in project execution and profitability could trigger a rerating in the stock.

Future Outlook

IL&FS Engineering and Construction Company Ltd has strong growth potential, driven by infrastructure demand; however, successful execution and stringent cost control will be crucial to fully realize this opportunity in the coming years.

AI FAQs for Retail Users

  • Q: What does IL&FS Engineering and Construction Company do?
    A: It specializes in infrastructure projects, including roads, bridges, and urban development.
  • Q: Is IL&FS Engineering and Construction Company financially stable?
    A: Financial stability can vary; review recent financial reports for the latest insights.
  • Q: What factors influence IL&FS Engineering and Construction's stock price?
    A: Stock price can be affected by project wins, government policies, and market conditions.
  • Q: How can I invest in IL&FS Engineering and Construction?
    A: You can invest through a stockbroker or trading platform that offers access to Indian stocks.
  • Q: Are there risks associated with investing in IL&FS Engineering and Construction?
    A: Yes, risks include market volatility, project delays, and regulatory changes.
📊 Stock Investment Checklist (100 Points)
IL&FS Engineering and Construction Company Ltd • Updated: 2025-09-17 02:35:37
  • 6
    Business
    Good
    The sector is under pressure with ongoing challenges in infrastructure projects.
  • 8
    Growth
    High
    Inconsistent revenue growth due to project delays and execution issues.
  • 5
    Profitability
    Good
    Low ROE and ROCE, with cash flow issues affecting net profit.
  • 7
    Valuation
    High
    Valuation metrics are not favorable compared to peers.
  • 6
    Balance
    Good
    High debt levels with limited liquidity.
  • 5
    Governance
    Good
    Concerns over promoter pledging and transparency.
  • 4
    Drivers
    Good
    Limited growth catalysts and high execution risks.
  • 3
    Technicals
    Low
    Weak market sentiment and low liquidity.
Final Score & Verdict
Score 44 / 100 • Risky
The company faces significant challenges in growth, profitability, and governance, making it a risky investment.

AI Confidence Score

Instead of just “overall score,” broken into categories:

  • Business Strength: 45/100
  • Growth Potential: 50/100
  • Profitability: 40/100
  • Governance: 35/100
  • Market Confidence: 30/100


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