Our 22th company in the Series of Best Stocks to Buy in India for Short term 2022 is Techno Electric & Engineering Company Ltd.
This company is good for investing purpose or not ?
Let’s start with the Company profile
Company Profile :
Techno Electric & Engineering Company Limited is a provider of engineering, procurement and construction (EPC) services to core sector industries in India.
Now Let’s check the important fundamental figures of this company. This is a small cap company with Market Cap ₹2,688cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 14.79
Sector PE Ratio: 74.44
PE Ratio of this company is low than Sector’s PE. So it’s a Good PE than the peers of this company.
PB Ratio : 1.66
Sector PB Ratio : 5.27
PB Ratio of this company is low than Sector’s PB ratio. So it’s Average PB than the peers of this company.
Dividend Yield : 4.09%
Sector Dividend Yield : 0.64%
Dividend Yield of this company is high than Sector. Dividend of this is Good than the peers of this company.
ROE (Return on equity) and ROCE (Return on capital equity) is Below Average
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2021 , Company have 586.33Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
Debt Level: TECHNOE has more cash than its total debt.
Reducing Debt: TECHNOE’s debt to equity ratio has reduced from 40.8% to 2.4% over the past 5 years.
Debt Coverage: TECHNOE’s debt is well covered by operating cash flow (499.1%).
Interest Coverage: TECHNOE earns more interest than it pays, so coverage of interest payments is not a concern.
Share Holding Pattern
|Promotor Holding||Foreign Institution|
|Other Domestic Institutions||Retail & Others|
Above table showing there is no big change in Promotor Holding which is 60.18% in June 2021. FIIs invested in June 2021 with 1.25% and retail investor is 7.71% .
Now We’ll check the return of the company, This company given 9.38% returns in last 1 year from 2021 to 3 Jan 2022.
Investment Checklist for Techno Electric & Engineering Company Ltd.
- The company is currently profitable
- Large one-off items impacting financial results
- Earnings are forecast to grow by an average of 10.5% per year for the next 3 years
- Debt level is low and not considered a risk
- Share price has been stable over the past 3 months
- Profit margins improved or TECHNOE became profitable
- They have sufficient analyst coverage
- No concerning events detected
- Shareholders have not been meaningfully diluted in the past year or recently listed
- Revenue is meaningful (₹9B)
- Market cap is meaningful (₹27B)
- TECHNOE does not have negative shareholders equity.
According to its historical performance we can predict stock target.
Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
Hope you liked Our 22th company in the Series of Best stocks to buy in India for short term 2022. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
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