Technoe Share Price Technical Analysis:
Technoe share price (Techno Electric & Engineering Company Limited) is in bullish momentum and ready to move upward after completing its correction. The stock has strong support at the 235 level on the daily and weekly charts. The stock will reach the 300 level in a short period provided the counter closes above 267 with strong volume. Further, the stock will move up if the broader market supports.
On the daily chart (21-06-2022), the technoe share closed above its previous day’s high. The trading volume has been above its long- and short-term average over three months. The trading volume with the green candles in the charts below represents the positive movement of the counter. That shows clear strength on the counter and gives a buy signal for the short to the medium term provided broader market supports.
Technoe Share Price Fundamental Analysis:
Techno Electric & Engineering is a small-cap company with a market cap of INR 2860 crores and a face value of INR 2. The company provides engineering, procurement, and construction (EPC) services to core sector industries in India. The stock is trading at 11 PE and 1.7 Price to book value. The sector PE in this industry is 42 and PB is 4.64. This shows the potential of the stock to match the industry.
Techno Electric & Engineering operates in four business segments. First, EPC consists of Flue Gas Desulfurization Plant, Transmission & Distribution, and Smart Metering. This segment contributes ~92% of the total revenue. Second, PPP transmission consists of Build Own Operate and Transfer (BOOT) and Build Own Operate and Maintain (BOOM). Third, the green power business contributes 8% of the total revenue. Four, data centre business.
Data centre business will do well in India over the next five years. Techno Electric & Engineering entered into data centre business in 2021. The company develops ultra-scalable hyper density Data Centres of 250 MW by FY2030 across India. This segment will contribute strongly to its top and bottom line in the future.
Technoe Share Price Financial Analysis:
Return on Capital employed is 19% in FY22. Return on equity increased from 11.24% in FY21 to 14.36% in FY22. This data reflects a strong valuation of this counter. Promoter shareholding remained the same over 5 years. FII has shown interest in it by increasing its holding from 1.19% in Dec 2021 to 1.24% in March 2022. The EPS of the company has jumped from 16.53 in FY21 to 23.99 in FY22.
Techone total revenue has increased by ~26% from INR 956 crores in FY21 to INR 1224 crores in FY22. Net income of the company has increased by ~43% from INR 181.77 crores in FY21 to INR 260.25 crores in FY22. The company is diversifying its business to data centre. That will strengthen its top and bottom line of the company.
The company is under the capable leadership of Mr. P.P Gupta who is the key promoter and managing director. He holds a Postgraduate degree in Management from IIM, Ahmedabad. Mr. Gupta worked as a Merchant banker with National Grindlays Bank. In addition, he worked as Management consultant deputed to BHEL. He served with industry associations like IEEMA, Confederation of Indian Industry, IIPW and IIW, and Vice President of Indian Electricals and Electronics Manufacturers Association.
Techno Electric & Engineering has completed over 400 projects. The company has over 40 years of experience in EPC services. Over 400 professional engineers with an average experience of 25 years are part of the company. Investing in the company in the short and long term is a good idea. You may add this stock to your portfolio in-deep.