Centrum Broking upgrades Techno Electric to 'buy'

Mumbai: Centrum Broking has upgraded shares of Techno Electronic to 'buy', citing strong EPC business model, recent correction in stock price and low debt levels.

Centrum said the company has repeatedly bagged high margin orders despite fierce competition and executed them in a timely manner.

The key catalyst for FY19 earnings would be the conversion of project bids worth Rs 30 billion into orders, said Centrum.

"We expect the company to become net debt negative from FY19 onwards since it has no major capex plan, healthy cash flow generation sufficient for scheduled debt repayments and limited exposure to BOOT/BOOM projects," said Centrum.

Centrum has a target price of Rs 410 on the stock. Shares of Techno Electric ended up 1.6% at Rs 352.85 on Monday.