Thejo Engineering Ltd. (THEJO) AI Stock Analysis

• Market Cap: ₹17.77B
• Dividend Yield: 0.3%
• Average Volume (3M): 2.87K
• Price to Earnings (P/E): 53.2
• Beta (1Y): 1.06
• Revenue Growth: 4.11%
• EPS Growth: 2.40%
• Country: IN
• Employees: 1,392
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 8.20
• Shares Outstanding: 10,846,354
• 10 Day Avg. Volume: 2,507
• 30 Day Avg. Volume: 2,866
• PEG Ratio: -3.51
• Price to Book (P/B): 6.61
• Price to Sales (P/S): 3.56
• P/FCF Ratio: 68.24
• 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: 70 Outperform
• Price Target: ₹1,774.00 ▲(2.19% Upside)
• Action: Upgraded Date: 10/24/25
• Date: Action: Upgraded 10/24/25

Thejo Engineering Ltd. scores well due to its robust financial performance, characterized by strong revenue and profit growth and a healthy balance sheet. However, technical analysis indicates bearish trends, and the stock appears overvalued with a high P/E ratio and low dividend yield. These factors moderate the overall score.

Positive Factors

Profitability and Margin Sustainment

Consistently improving gross and net margins point to durable pricing power and effective cost control in engineered products and services. Sustained margins support reinvestment, buffer cyclicality in industrial demand, and underpin long-term free cash flow generation and shareholder returns.

Healthy Balance Sheet / Low Leverage

Low leverage and a robust equity base reduce financial risk and increase strategic flexibility. This balance sheet strength enables the company to fund capex or bid on large turnkey projects, sustain operations through downturns, and preserve capacity to support growth or M&A without heavy refinancing.

Consistent Revenue Growth

Mid-teens revenue growth indicates steady demand for material-handling products and services. Durable top-line growth enhances scale benefits, supports incremental margin expansion, and validates market positioning in bulk-material and wear-solution niches that drive recurring service and replacement revenue.

Negative Factors

Free Cash Flow Variability

Variability in free cash flow increases uncertainty around the firm’s ability to consistently fund dividends, reinvestment, and working-capital-intensive projects. Over a multi-month horizon this can constrain growth initiatives or force reliance on external funding during weaker quarters.

Low EPS Growth

Modest EPS growth despite revenue increases suggests limited profit-per-share expansion, possibly from margin pressure, dilution, or episodic costs. Slower EPS progression can reduce earnings compounding over time and limit retained-earnings capacity to finance strategic investments.

Cyclicality / Project-Driven Revenue

Heavy reliance on project-based and industrial end-markets exposes earnings to project timing and capex cycles. Structural cyclicality in bulk-material industries can produce uneven order flows and margin swings, creating recurring planning and working-capital challenges across multi-month horizons.

Thejo Engineering Ltd. Business Overview & Revenue Model

Company Description

Thejo Engineering Limited designs, manufactures, markets, and services rubber and polyurethane based engineering products for bulk material handling systems, mineral processing, and corrosion protection applications in India and internationally. It operates through three segments: Manufacturing Units, Service Units, and Others. The company provides conveyor care products, including belt conveyor splicing and repair chemicals, vulcanizing equipment, pulley protection, handling equipment, and splicing and repair tools; and transfer point solutions, such as belt cleaners and trackers, impact cushion pads, skirt sealing systems, and engineered chutes, as well as related services. It offers dust suppression products comprising high pressure fogging systems; flow promotion products that include G force and BAZOOKA air blasters; abrasion and wear protection products and services, such as mill liners, bulk flow chutes, wear resistant panels and sheetings, pump spares, rubber hoses and fittings, and rubber lined pipes and fittings; screening solutions and services consisting of scalping and sizing, dewatering, flip flow, trommels, and grator screening medias; filtration products and services covering rubber, engineered plastic, and metallic spares; corrosion protection products comprising rubber sheetings, primers adhesives and repair putties, expansion joints and bellows, and PTFE linings and bellows, as well as fabrication and lining services; and specialty products. In addition, the company provides installation, operation, and maintenance services for conveyor belts and allied services, as well as project execution services. It serves the mining, mineral processing, aggregates, sand and gravel, power, metal, chemical and fertilizer, cement, paper and pulp, and food and grain industries, as well as ports and terminals. The company was founded in 1974 and is based in Chennai, India.

How the Company Makes Money

Thejo Engineering Ltd. generates revenue through multiple streams, primarily by selling its manufactured products, including conveyor belts, wear parts, and rubber lining solutions, to various industries such as mining, cement, and power generation. Additionally, the company offers engineering services, which include installation, maintenance, and technical support, further contributing to its earnings. Significant partnerships with key players in these sectors enhance its market reach and facilitate long-term contracts, which provide a stable income source. Furthermore, THEJO benefits from its reputation for quality and reliability, attracting new clients and retaining existing ones, thereby driving consistent revenue growth.

Thejo Engineering Ltd. Financial Statement Overview

Summary

Thejo Engineering Ltd. demonstrates strong financial performance with consistent revenue and profit growth, solid profitability margins, and prudent financial management. The balance sheet is healthy with low leverage, and cash flows are generally strong despite some fluctuations.

Income Statement

Thejo Engineering Ltd. exhibits strong profitability with a consistent increase in gross profit and net profit margins over the years. The revenue growth rate has been positive, showing stability and upward trajectory. EBIT and EBITDA margins are healthy, reflecting efficient cost control and operational performance.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio, indicating financial prudence. The return on equity is commendable, demonstrating effective use of shareholder funds. The equity ratio is robust, highlighting a strong asset base relative to liabilities, which reduces financial risk.

Cash Flow

Cash flow analysis indicates a positive trend in operating cash flow and free cash flow growth. The operating cash flow to net income ratio is strong, showcasing that earnings are well-supported by cash flow. However, free cash flow has shown variability, indicating potential fluctuations in cash generation capabilities.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.58B	5.53B	5.59B	4.74B	4.24B	3.26B
Gross Profit	3.92B	2.44B	3.15B	3.67B	2.51B	2.01B
EBITDA	923.17M	927.58M	1.02B	625.73M	699.59M	529.83M
Net Income	497.13M	498.94M	556.39M	324.18M	376.30M	264.54M
Balance Sheet
Total Assets	0.00	4.46B	4.14B	3.64B	3.03B	2.35B
Cash, Cash Equivalents and Short-Term Investments	745.76M	779.53M	654.11M	608.15M	459.07M	325.59M
Total Debt	0.00	299.80M	425.12M	453.08M	381.24M	176.97M
Total Liabilities	-3.20B	1.26B	1.41B	1.45B	1.17B	894.24M
Stockholders Equity	3.20B	2.98B	2.50B	1.96B	1.65B	1.29B
Cash Flow
Free Cash Flow	0.00	288.45M	292.72M	91.60M	126.03M	375.25M
Operating Cash Flow	0.00	697.34M	518.07M	586.07M	273.02M	506.47M
Investing Cash Flow	0.00	-451.04M	-190.89M	-504.55M	-146.56M	-126.47M
Financing Cash Flow	0.00	-188.64M	-151.46M	-80.72M	-443.00K	-283.43M

Thejo Engineering Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1736.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:THEJO, the sentiment is Negative. The current price of 1736 is above the 20-day moving average (MA) of 1700.88, above the 50-day MA of 1735.80, and below the 200-day MA of 1853.50, indicating a bearish trend. The MACD of -23.26 indicates Positive momentum. The RSI at 38.32 is Neutral, neither overbought nor oversold. The STOCH value of 25.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:THEJO.

Thejo Engineering Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MMFL	72 Outperform	₹20.90B	24.91	―	1.07%	-4.47%	-17.62%
THEJO	70 Outperform	₹17.77B	53.19	―	0.30%	4.11%	2.40%
ROTO	66 Neutral	₹10.55B	47.85	―	0.36%	2.00%	-20.08%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
WENDT	59 Neutral	₹13.25B	130.82	―	0.62%	―	―
SALZERELEC	58 Neutral	₹11.18B	24.44	―	0.36%	21.51%	-17.75%

Thejo Engineering Ltd. Corporate Events

Thejo Engineering to Close Trading Window Ahead of December Quarter Results

Thejo Engineering Limited has announced that it is closing its trading window for company securities for directors, designated persons and their immediate relatives from December 31, 2025 until 48 hours after the declaration of its financial results for the quarter ending December 31, 2025, in line with its internal code of conduct and SEBI (Prohibition of Insider Trading) Regulations, 2015. This routine compliance step aims to prevent insider trading around the upcoming quarterly results and signals that the board will soon meet to consider and approve these financials, information of interest to investors and market participants monitoring the company’s performance and governance standards.