This Engineering Stock Is Showing 58% Upside After Target Price Revision, Buy: ICICI Securities

ICICI Securities has given buy rating to Techno Electric & Engineering Company Ltd with a target price of Rs 461 apiece. The analyst has revised the target price from Rs 471 to Rs 461. If you buy Techno Electric & Engineering today at its current market price of Rs 293 apiece, you will get a potential return of 58%.

Given the strong balance sheet, healthy execution and expected pick-up in order intake, we maintain BUY on the stock with an SoTP-based target price of Rs461 (earlier: Rs471), said ICICI Securities. Check key takeaways below:

1. Techno Electric & Engineering Stock Outlook & Return

The current market price of the stock is Rs 291 apiece with an intraday fall of 0.46%. The stock's 52-week high is Rs 319 apiece and 52-week low is Rs 221 apiece, respectively. The company has a market capitalisation of Rs 3204 crore.

Return: The stock has given maximum return of 11% in last 1 year. In 1-month, it has given a return of 4%.

2. Healthy Order Intake

During Q2FY23, the company booked orders worth Rs4bn against Rs500mn in Q2FY22 and Rs19bn in Q1FY23. Current orderbook stands at Rs36bn. For FY23, management has maintained its order inflow guidance of Rs30bn from across FGD, T&D, smart metering and data centres.

3. Valuation

According to ICICI Securities, "maintain BUY on healthy orderbook and inexpensive valuation: We believe TEEC's foray in data centre business will be positive in the long run on increased thrust from the government as data centres have been granted infrastructure status. Additionally, it derives a strong impetus from its presence in the T&D segment, as we expect T&D ordering momentum to gather pace from Green Energy Corridor in the next 24 months. Given healthy execution outlook with a stable margin, we maintain our BUY rating on the stock."

4. Techno Electric & Engineering About

The mid-cap company operates in Engineering sector. Techno Electric & Engineering Company Ltd. (TEECL) is one of India's most important power-infrastructure companies.

It is at the top of Engineering, Procurement and Construction (EPC), asset ownership and operations and maintenance services in the three industry segments of generation, transmission and distribution. Incorporated in 1963 and headquartered in Kolkata, its operations are spread across India and abroad, according to its official website.

Disclaimer

The stock has been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.