TECHNOE - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.2

Here’s a comprehensive analysis of Techno Electric & Engineering Company Ltd (TECHNOE)

📊 Core Financials

Profitability & Growth

PAT surged to ₹135 Cr from ₹96 Cr — a robust 73.6% quarterly profit variation

EPS: ₹36.4 — solid earnings base for its market cap

ROE: 12.8%, ROCE: 16.5% — respectable returns, though slightly below top-tier peers

Balance Sheet Strength

Debt-to-equity: 0.01 — virtually debt-free, excellent financial discipline

Dividend Yield: 0.48% — modest, but consistent

Cash Flow & Efficiency

Strong operating margins (~13.5%)

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Stable cash reserves and minimal liabilities

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💰 Valuation Metrics

Metric Value Interpretation

P/E Ratio 45.0 Significantly above industry average (23.8) — overvalued

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P/B Ratio ~4.5 Premium valuation

PEG Ratio 3.53 High — suggests expensive relative to growth

Intrinsic Value Below CMP Price may be stretched at current levels

🧠 Business Model & Competitive Edge

Core Business: Power infrastructure, EPC services, and data center solutions

Recent Wins: Major contract with RailTel for Edge Data Centers — boosts long-term visibility

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Strengths

Strong execution in power and transmission projects

Diversification into digital infrastructure

Risks

High valuation could limit upside

Slight decline in institutional holdings (FII/DII)

📉 Technical & Sentiment Indicators

RSI: 43.7 — neutral zone, no clear momentum

MACD: -12.8 — bearish crossover

Volume slightly below average — subdued interest

DMA 50 & 200: CMP near 50 DMA, well above 200 DMA — medium-term strength

🎯 Entry Zone & Long-Term View

Suggested Entry Zone: ₹1,300–₹1,380 — closer to support and better margin of safety

Long-Term Holding: Promising for investors seeking exposure to infrastructure and digital transformation. Monitor valuation and contract execution.

Want to explore how it compares with other mid-cap infra players like KEC or Kalpataru?

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ticker.finology.in

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stockanalysis.com

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