Buy Techno Electric & Engineering Company, target price Rs 333: Anand Rathi – Economic Times
Anand Rathi has buy call on Techno Electric & Engineering Company with a target price of Rs 333. The current market price of & Engineering Company Ltd. is Rs 278.5. Time period given by analyst is one year when Techno Electric & Engineering Company Ltd. price can reach defined target.
Techno Electric & Engineering Company Ltd., incorporated in the year 2005, is a Mid Cap company (having a market cap of Rs 3075.60 Crore) operating in Engineering sector.
Techno Electric & Engineering Company Ltd. key Products/Revenue Segments include Income from EPC,Contracts,& Others, Power and Other Operating Revenue for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 310.64 Crore, down -26.66 % from last quarter Total Income of Rs 423.58 Crore and up 39.22 % from last year same quarter Total Income of Rs 223.14 Crore. Company reported net profit after tax of Rs 37.09 Crore in latest quarter.
RECOMMENDEDSTORIES FOR YOU
Investment Rationale
Though its profitability was affected by inflationary pressures, Techno’s Q4 execution was ahead of ARe. Its EPC revenue was ~43% higher y/y to Rs3bn (ARe: Rs2.7bn). In FY22, it bagged orders of Rs8bn, less than expected, as orders of Rs20.45bn were not finalised and were received in Q1 FY23. Hence, the ytd order backlog is a strong ~Rs35bn and L1 of Rs10 bn. Management expects good orders in FGD, the green energy corridor, smart meters and data centres. Cash & investments were ~Rs11bn (~35% of M.Cap). The brokerage retains Buy rating with a TP of Rs333 (12x FY24e EPS), earlier Rs338.
Promoter/FII Holdings
Promoters held 60.18 per cent stake in the company as of 31-Mar-2022, while FIIs owned 1.24 per cent, DIIs 27.33 per cent.
(Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
