Positive on Technofab Engineering: Seshadri Bharathan

In a chat with ET Now, Seshadri Bharathan, MD & CEO, KSEMA Fincon Ltd., talks about the outlook of Technofab Engineering.

What's your view on Technofab Engineering?

This company is into the engineering business. It is a subcontractor for most of the bigger companies like L&T and BHEL. Last year, they had earnings per share of around Rs 25, which means that at the time of IPO, post dilution would be around 12-13 times the PE multiple. Now, post listing, the stock is fairly valued and going forward, it would get into a high-risk low margin business of road where we need to see whether the company would be able to maintain its current margin.