TECHNOE - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.0

📊 Core Financials Overview

Profitability

ROCE: 16.6% and ROE: 12.9% — solid but not exceptional.

EPS: ₹38.8 — consistent earnings, though recent PAT dropped from ₹133 Cr. to ₹98.2 Cr.

Balance Sheet Strength

Debt-to-equity: 0.00 — completely debt-free, a major plus.

Dividend Yield: 0.63% — modest, not a key attraction for income investors.

Quarterly Volatility

Despite a 76.5% quarterly profit variation, the long-term CAGR is impressive — 769.8% return over 5 years

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💰 Valuation Metrics

Metric Value Insight

P/E Ratio 39.0 Significantly above industry average (20.6) — overvalued.

P/B Ratio ~4.42 Reasonable for a capital-light EPC business.

PEG Ratio 2.84 High — suggests valuation is stretched relative to growth.

Intrinsic Value ~₹1,250–₹1,300 (est.) Current price of ₹1,431 is slightly above fair value.

🧠 Business Model & Competitive Edge

Core Operations: EPC services in power generation, transmission, and distribution

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Strengths

Long-term bullish trend with strong historical returns

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Zero debt and lean operations.

Challenges

Recent decline in FII/DII holdings.

Profit contraction in the latest quarter.

RSI at 41.2 and MACD at -10.5 — bearish technical signals.

📈 Entry Zone & Technicals

DMA 50: ₹1,471, DMA 200: ₹1,362 — price is below 50 DMA, near 200 DMA.

RSI: 41.2 — approaching oversold territory.

MACD: -10.5 — bearish momentum.

📌 Entry Zone: ₹1,350–₹1,400 — ideal for accumulation if bearish trend persists.

🕰️ Long-Term Holding Guidance

Outlook: Despite short-term volatility, the company has delivered 453.85% in 3 years and 769.8% in 5 years

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Holding Strategy: Suitable for long-term investors with moderate risk appetite. Watch for quarterly earnings stability and institutional interest recovery.

If you'd like, I can also chart out its historical price action or compare it with peers like IRCON or Anant Raj.

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stockpricearchive.com

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