Techno Electric & Engineering Company Limited (TECHNOE) AI Stock Analysis

• Market Cap: ₹116.06B
• Dividend Yield: 0.8%
• Average Volume (3M): 17.32K
• Price to Earnings (P/E): 24.7
• Beta (1Y): 1.31
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 360
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 10.22
• Shares Outstanding: 116,299,576
• 10 Day Avg. Volume: 20,450
• 30 Day Avg. Volume: 17,324
• PEG Ratio: 0.88
• Price to Book (P/B): 3.19
• Price to Sales (P/S): 5.25
• P/FCF Ratio: 33.96
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹1,075.00 ▼(-3.21% Downside)

The score is supported primarily by strong financial quality (high profitability and an exceptionally low-leverage balance sheet), but is held back by cash-flow volatility and an unfavorable technical setup (below key longer-term moving averages with negative MACD). Valuation also detracts due to a relatively high P/E alongside a low dividend yield.

Positive Factors

Resilient profitability and recent revenue rebound

Sustained high net margins and a near‑20% revenue rebound in FY2025 signal durable execution in EPC and asset operations. This level of profitability provides internal funding capacity, supports reinvestment and resilience through project cycles over the medium term.

Extremely conservative balance sheet

Near-zero leverage gives structural financial flexibility: lower interest burden, greater capacity to bid on large projects and absorb delays, and reduced refinancing risk. A conservative capital structure supports long-term stability in capital‑intensive infrastructure work.

Annuity-like revenue from owned transmission assets

Ownership of transmission assets and O&M services provides steadier, recurring cash flows that diversify the revenue mix away from lumpy EPC billing. This structural annuity component can smooth earnings, improve predictability, and support valuation over multi‑year horizons.

Negative Factors

Volatile cash conversion

Material swings between negative OCF in FY2024 and partial FCF conversion in FY2025 highlight durable working‑capital volatility inherent in project execution. Persistent variability can constrain reinvestment, dividend policy and make capital planning sensitive to project timing.

Margin compression versus earlier years

Downward pressure on gross and operating margins versus prior cycles suggests structural cost or competitive pressures, or adverse project mix. If sustained, margin erosion limits free cash generation and ROE expansion, reducing potential for scaling profits without efficiency gains.

EPC model exposes working-capital and execution risks

Heavy reliance on milestone‑based EPC contracts makes results sensitive to project delays, billing timing and client concentration. Structural working‑capital demands can create funding needs and amplify cash volatility, constraining growth unless project execution and receivable cycles improve.

Techno Electric & Engineering Company Limited Business Overview & Revenue Model

Company Description

Techno Electric & Engineering Company Limited provides engineering, procurement, and construction (EPC) services to the power generation, transmission, and distribution sectors in India. The company operates through EPC and Energy segments. It provides solutions for captive power plants, balance of plant for thermal and hydro power projects, utilities for power projects, and flue gas desulphurisation plants; constructs air-insulated and gas-insulated substations; and installs overhead lines. The company also undertakes industrial projects, such as plant electrical and illumination systems, oil handling plants, fire protection systems, air conditioning and ventilation systems, offsite piping systems, water and allied systems, as well as naptha and diesel based systems for turbine-based power plant; and power distribution systems to power intensive industries. In addition, it is involved in the generation of wind power in Tamil Nadu with a capacity of 129.9 MW. Further, the company engages in building transmission linkages. It serves power, steel, fertilizer, metals, petrochemicals, and other sectors. The company was founded in 1963 and is headquartered in Kolkata, India.

How the Company Makes Money

Techno Electric & Engineering Company Limited Financial Statement Overview

Summary

Strong fundamentals overall: profitability is resilient with FY2025 net margin ~18.6% and revenue up ~19.9% YoY, and the balance sheet is exceptionally conservative (FY2025 debt-to-equity ~0.01). The main offset is inconsistent cash conversion, with FY2024 showing negative operating/free cash flow and FY2025 FCF only ~0.68x net income.

Income Statement

Profitability is strong and resilient, with net margin holding in the high-teens in FY2025 (~18.6%) and healthy operating profitability. Growth also re-accelerated sharply in FY2025 (revenue up ~19.9% YoY) after a muted FY2024. The main weakness is margin compression versus earlier years (notably FY2020–FY2021 had materially higher gross and operating margins), indicating either mix/competition or cost pressures.

Balance Sheet

Balance sheet strength is a standout: leverage is extremely low (FY2025 debt-to-equity ~0.01) with a large equity base. Returns on equity are solid and fairly steady (roughly low-teens, ~11.3% in FY2025), supporting quality of earnings without relying on debt. A minor watch item is that returns are good but not exceptional, suggesting growth is driven more by scale and execution than high financial leverage.

Cash Flow

Cash generation is mixed. FY2025 shows a strong rebound with positive operating cash flow (~₹5.19B) and free cash flow (~₹3.51B). However, FY2024 saw materially negative operating and free cash flow, highlighting volatility in cash conversion that can occur in project-based businesses. In FY2025, free cash flow covered only about two-thirds of net income (~0.68x), which is decent but leaves room for improvement in converting reported profits into sustainable cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	24.19B	22.69B	15.02B	8.29B	9.99B	8.89B
Gross Profit	5.46B	5.01B	3.39B	2.01B	2.51B	3.20B
EBITDA	3.79B	3.39B	2.09B	871.39M	1.91B	2.16B
Net Income	4.61B	4.23B	2.68B	1.87B	2.64B	1.82B
Balance Sheet
Total Assets	0.00	50.56B	28.34B	27.79B	25.16B	22.03B
Cash, Cash Equivalents and Short-Term Investments	29.31B	29.31B	12.79B	14.91B	10.94B	7.21B
Total Debt	0.00	390.92M	0.00	0.00	0.00	400.03M
Total Liabilities	-37.40B	13.17B	6.72B	8.39B	6.79B	5.86B
Stockholders Equity	37.40B	37.40B	21.63B	19.30B	18.37B	16.16B
Cash Flow
Free Cash Flow	0.00	3.51B	-3.79B	315.08M	2.25B	1.25B
Operating Cash Flow	0.00	5.19B	-1.98B	344.22M	2.58B	1.25B
Investing Cash Flow	0.00	-17.07B	2.69B	714.05M	-2.24B	-542.60M
Financing Cash Flow	0.00	11.86B	-845.06M	-1.03B	-627.63M	-338.43M

Techno Electric & Engineering Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INFIBEAM	73 Outperform	₹58.43B	21.97	―	0.27%	60.67%	15.90%
SCI	70 Outperform	₹100.78B	12.53	―	4.43%	-7.39%	-21.53%
TECHNOE	66 Neutral	₹116.06B	24.66	―	0.80%	―	―
GRINFRA	60 Neutral	₹93.69B	8.50	―	1.20%	-6.01%	-3.81%
IONEXCHANG	60 Neutral	₹51.22B	22.77	―	0.40%	11.56%	-2.78%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
SABTNL	51 Neutral	₹41.83B	-435.01	―	―	―	―