The stock of Engineers India has gained over 24% in the past week on the BSE. The scrip ended over 2% higher at close on Wednesday at Rs 1,428.25.
Brokers say the stock is being driven by speculation that the company may announce a bonus issue of shares shortly. The other key trigger has been the announcement last week by the government that it planned to sell stakes in profitmaking public sector undertakings.
Analysts point out that Engineers India was among the few companies unaffected by the slowdown in 2008. Even as the company’s earnings grew 61% in FY09, there was a steady increase in new orders.
Engineers India is well-entrenched in high-end project consulting, which provides the company an edge when it comes to bidding for hydrocarbon, metal and infrastructure projects.
| NIFTY 
