Techno Electric
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Techno Electric's management has articulated a clear strategy to capitalize on India's burgeoning power infrastructure and digitalization trends, which are expected to drive revenue growth despite current margin pressures. The company's robust order book, particularly in transmission and distribution (T&D) and smart metering projects, provides significant revenue visibility. Additionally, the ongoing development of its data center business, including the commissioning of its Chennai facility and plans for expansion in Noida and Kolkata, positions Techno Electric favorably for long-term growth. Vista's financial outlook reflects an anticipated acceleration in revenue growth beyond historical levels, supported by these strategic initiatives. However, margins are expected to remain under pressure due to supply chain constraints and rising procurement costs. The favorable macroeconomic environment, characterized by stable inflation and strong liquidity, further enhances the company's growth prospects. Over the next 12-24 months, key opportunities include the expansion of the data center business and increased project awards in T&D, while watchpoints include potential supply chain disruptions and competitive pressures in the EPC sector
Why We Like This Stock
- Robust order book providing significant revenue visibility, particularly in T&D and smart metering projects
- Strategic expansion in the data center business, with ambitious revenue targets set for FY30
- Favorable macroeconomic conditions supporting infrastructure investment and growth
Things To Watch Out For
- Ongoing supply chain constraints and higher procurement costs impacting margins
- Competitive pressures in the EPC sector may challenge market share and pricing power
- Cautious investor sentiment reflected in recent trading activity
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,502 | 2,269 | 3,252 | 3,091 | 4,353 |
| Profit Before Tax (Cr.) | 322 | 480 | 575 | 505 | 726 |
| PBT Margin | 21.4% | 21.2% | 1768.1% | 16.4% | 16.7% |
| Net Profit (Cr.) | 258 | 393 | 448 | 399 | 573 |
| Earnings Per Share | 22.1 | 33.8 | 38.6 | 34.3 | 49.3 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Techno Electric & Engineering Company Limited provides engineering, procurement, and construction (EPC) services to the power generation, transmission, and distribution sectors in India. It offers operates gas insulated, hybrid, and EHV substations; and offers STATCOM installation services, as well as engages in flue gas desulphurization projects. The company also offers metering infrastructure and IT enabled services. In addition, it is involved in generation of wind power; agro business, and operating data centers. The company was incorporated in 1963 and is headquartered in Kolkata, India.