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.
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.
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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.
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.
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