⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
TECHNOE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | TECHNOE | Market Cap | 11,586 Cr. | Current Price | 996 ₹ | High / Low | 1,655 ₹ |
| Stock P/E | 25.2 | Book Value | 336 ₹ | Dividend Yield | 0.90 % | ROCE | 16.6 % |
| ROE | 12.9 % | Face Value | 2.00 ₹ | DMA 50 | 1,064 ₹ | DMA 200 | 1,232 ₹ |
| Chg in FII Hold | -0.69 % | Chg in DII Hold | 0.43 % | PAT Qtr | 123 Cr. | PAT Prev Qtr | 98.2 Cr. |
| RSI | 48.9 | MACD | -37.6 | Volume | 11,05,150 | Avg Vol 1Wk | 3,68,534 |
| Low price | 785 ₹ | High price | 1,655 ₹ | PEG Ratio | 1.84 | Debt to equity | 0.01 |
| 52w Index | 24.3 % | Qtr Profit Var | 36.6 % | EPS | 41.6 ₹ | Industry PE | 16.9 |
📊 Core Financials
- Revenue Growth: Positive momentum with quarterly PAT rising from 98.2 Cr. to 123 Cr.
- Profit Margins: Healthy EPS at 41.6 ₹, showing consistent profitability.
- Debt Ratios: Very low debt-to-equity (0.01), indicating strong financial stability.
- Cash Flows: Likely positive given profitability and low leverage.
- Return Metrics: ROCE at 16.6% and ROE at 12.9% reflect efficient capital use.
💹 Valuation Indicators
- P/E Ratio: 25.2, higher than industry average (16.9), suggesting premium valuation.
- P/B Ratio: ~2.96 (Current Price / Book Value), reasonable compared to peers.
- PEG Ratio: 1.84, indicates valuation is aligned with growth expectations.
- Intrinsic Value: Current price (996 ₹) trades below DMA 50 (1,064 ₹) and DMA 200 (1,232 ₹), offering potential value entry.
🏢 Business Model & Competitive Advantage
- Operates in engineering and technology solutions, with diversified offerings across industries.
- Competitive advantage lies in niche expertise and strong execution capabilities.
- Low debt and consistent profitability provide resilience in cyclical markets.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near 950–1,000 ₹, close to current levels and below DMA averages.
- Long-Term Holding: Suitable for investors seeking steady growth with moderate risk. Strong fundamentals support holding, though valuation premium should be monitored.
Positive
- Quarterly profit growth of 36.6%.
- Low debt-to-equity ratio (0.01).
- EPS of 41.6 ₹ indicates strong earnings power.
Limitation
- P/E ratio higher than industry average, suggesting limited upside.
- FII holdings decreased (-0.69%), showing reduced foreign investor confidence.
- Technical indicators weak (MACD negative, RSI mid-range).
Company Negative News
- Stock trading below DMA 50 and DMA 200, indicating bearish sentiment.
- Reduced foreign institutional participation.
Company Positive News
- Quarterly PAT improved significantly from 98.2 Cr. to 123 Cr.
- DII holdings increased (+0.43%), reflecting domestic support.
Industry
- Industry P/E at 16.9, lower than TECHNOE’s valuation, suggesting sector trades at more reasonable multiples.
- Engineering and technology sector benefits from infrastructure and digital transformation demand.
Conclusion
- TECHNOE shows strong fundamentals with profitability, low debt, and growth momentum.
- Valuation is slightly stretched compared to industry, but current price below DMA levels offers entry opportunity.
- Long-term investors can hold for growth and stability, while monitoring valuation and technical trends.
Would you like me to also create a valuation comparison table (TECHNOE vs industry peers) in HTML format to highlight relative strengths and weaknesses?