Buy Techno Electric And Engineering For Potential Upside Of 64%: ICICI Direct.

ICICI Direct has maintained a buy call on a stock from the engineering and construction sector. The brokerage firm is highly bullish on the stock and suggests a surge of more than 64% from the current market price.

Here is a detailed breakdown of the latest report of ICICI Direct on techno-electric and engineering.

Outlook of Techno Electric And Engineering (TEEC)

Techno Electric And Engineering are one of India's most important power infrastructure companies. Techno Electric & Engineering Company Ltd. (TEECL) offers engineering, procurement, and construction (EPC), asset ownership, operations, and maintenance services in the field of power infrastructure.

The stock's current market price is Rs. 287, with a 52-week low of Rs. 221 and a 52-week high of Rs.320. The stock has shown a reversal from a downtrend in the past few weeks; as per the latest report of ICICI Direct, the stock has the potential to reach the target price of Rs. 471.

Valuation and Company Outlook

According to the ICICI Direct report, "Techno Electric & Engineering Company's (TEEC) FY22 annual report highlights its strong business from FGD segment mainly led by States and private sector. The company sees tremendous opportunities in the smart metering segment as India plans to install around 250mn smart metres by FY25 from 4.2mn as of Apr '22. Its future focus area is to develop 250MW hyper-density data centre across India by 2030. It spent Rs320mn on lease hold land in Chennai for the upcoming data centre project. Free cashflow generation more than doubled to Rs2.9bn during the year on account of strong execution and improvement in working capital cycle. Investments increased by Rs3.3bn over FY21, mainly in Mutual Funds".

Buy Call of ICICI Direct on Techno Electric And Engineering

"Given strong balance sheet, healthy execution and expected pick up in order intake, we maintain our BUY rating on the stock with target price of Rs471." Says ICICI Direct. In the latest report of ICICI Direct, the brokerage firm mentions the company's robust growth and the company's investments are also increasing rapidly.
To summarize the report in one headline, ICICI Direct mentioned, "Improved ordering outlook to lead the way".