Buy Techno Electric & Engineering Company, target price Rs 420: JM Financial

JM Financial has buy call on Techno Electric & Engineering Company with a target price of Rs 420. The current market price of Techno Electric & Engineering Company is Rs 355.15.

Techno Electric & Engineering Company, incorporated in the year 2005, is a Mid Cap company (having a market cap of Rs 3838.10 Crore) operating in Engineering sector.

Techno Electric & Engineering Company key Products/Revenue Segments include Income from EPC,Contracts,& Others, Power and Other Operating Revenue for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 205.21 Crore, down -16.93 % from last quarter Total Income of Rs 247.04 Crore and down -51.55 % from last year same quarter Total Income of Rs 423.58 Crore. Company has reported net profit after tax of Rs 31.41 Crore in latest quarter.

The company’s top management includes Mr.P P Gupta, Mr.Ankit Saraiya, Ms.Avantika Gupta, Ms.Dipali Khanna, Mr.S N Roy, Mr.K K Rai, Mr.K M Poddar, Mr.K Vasudevan. Company has Singhi & Co. as its auditors. As on 31-12-2022, the company has a total of 11 Crore shares outstanding.

Investment Rationale
The brokerage maintains BUY as robust order book position gives revenue visibility over next 24-30 months, overhang of low RoE wind business will fade out as nearly 80% of wind assets are sold and strong cash balance of INR15bn+ (including wind asset sale) will ensure healthy payout over next 3 years.

Promoter/FII Holdings
Promoters held 61.16 per cent stake in the company as of 31-Dec-2022, while FIIs owned 1.69 per cent, DIIs 25.95 per cent.