Buy Techno Electric & Engineering Company, target price Rs 410: ICICI Direct

ICICI Direct has buy call on Techno Electric & Engineering Company with a target price of Rs 410.The current market price of Techno Electric & Engineering Company is Rs 318.65.

Techno Electric & Engineering Company, incorporated in the year 2005, is a Mid Cap company (having a market cap of Rs 3508.27 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 30-09-2022, the company has reported a Consolidated Total Income of Rs 247.04 Crore, up 32.84 % from last quarter Total Income of Rs 185.97 Crore and down -12.95 % from last year same quarter Total Income of Rs 283.79 Crore. Company has reported net profit after tax of Rs 58.81 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 30-09-2022, the company has a total of 11 Crore shares outstanding.

Investment Rationale
Entry into data centre, smart meters and FGD market and becoming significant EPC player that improves revenue visibility over the next few years. The company has a healthy balance sheet and cash balance of Rs 1200 crore. During Q2FY23, the company booked orders worth Rs 400 crore against Rs 500 crore in Q2FY22 and Rs 1900 crore in Q1FY23. Current order book was at Rs 3600 crore. For FY23, the management has maintained its order inflow guidance of Rs 3000 crore across from FGD, T&D, smart metering and data centres.

Promoter/FII Holdings
Promoters held 60.2 per cent stake in the company as of 30-Sep-2022, while FIIs owned 1.44 per cent, DIIs 26.81 per cent.