Techno Electric & Engineering Company Limited

Industrials — Engineering & Construction · NSE

₹955.00+₹9.80 (+1.04%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of Techno Electric & Engineering Company Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Techno Electric & Engineering Company Limited provides engineering, procurement, and construction (EPC) services to the power generation, transmission, and distribution sectors in India and internationally.

IndustryEngineering & Construction

SectorIndustrials

Employees703

Annual revenue₹3,160 Cr

How does it make money?

Turns over ₹3,160 Cr a year. Of every ₹100 of sales, about ₹15 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 703 employees supports ₹4.49 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.49 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 12.5% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE14.1%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 23.3% and earnings to grow about 21.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+23.3%

Est. earnings growth+21.3%

Analysts2

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +282% while net margin moved -34% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+282%

Margin effect-34%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.76 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

62/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

67/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

25.8x

3Y Median

40.7x

40 monthly readings · mean 44.4x · range 23.2x–99.8x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 37% below its 3y median of 40.7x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟡Against its sector it is priced broadly in line with the peer median of 30.1x.

vs. its own history

Cheap

40.7x median over 40 months · -37%

vs. sector peers

Fair

30.1x median of 3 peers · -14%

vs. generic bands

Fair

15x–35x

EV/EBITDA

20.0x

PEG

0.71

What's Good / What's Bad

🟢 What's Going Well2

Return on capital is rising
ROCE has improved from 6.8% to 12.5%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 1.74x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹657 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 37% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 1.74x. Interest is payable whether or not the business has a good year.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 42% a year✓ 56.3% CAGR
Latest reported year was 19.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 16%✓ 17.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹657 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 9%✓ 12.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 6 neutral · 3 weak

Market Cap

₹11,107 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

25.8x

Fair

Fairly valued against the generic band

P/B Ratio

2.67x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹37.06

Profitable

Profitable on a per-share basis

ROE

11.4%

Moderate

Moderate capital efficiency

ROCE

12.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.74x

High

High leverage

Revenue Growth (YoY)

19.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-31.5%

Falling

Profits are shrinking

Dividend Yield

0.73%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹657 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

16.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

14.8%

Average

Average margins

Net Margin

12.8%

Good

Strong bottom-line conversion

Current Ratio

4.06

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.76

Defensive

Steadier than the market

52W Range Position

17%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

983.0 / 987.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

34.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹827 Cr	₹1,498 Cr	₹2,243 Cr	₹3,160 Cr	+56.3%
EBITDA	₹153 Cr	₹297 Cr	₹406 Cr	₹558 Cr	+53.9%
EBITDA Margin	18.5%	19.8%	18.1%	17.6%	—
PAT (Net Profit)	₹187 Cr	₹268 Cr	₹423 Cr	₹474 Cr	+36.4%
EPS	₹17.1	₹24.94	₹37.19	₹40.74	+33.6%
ROE	9.7%	12.4%	11.3%	11.4%	—
ROCE	6.8%	14.6%	11.7%	12.5%	—
Total Debt	—	—	₹39 Cr	₹72 Cr	—
Free Cash Flow	₹28 Cr	-₹379 Cr	₹285 Cr	-₹657 Cr	—

🟢 Revenue has grown at 56.3% a year over 3 years.

🟢 EBITDA has grown at 53.9% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 17.6% over 3 years.

🟢 PAT (Net Profit) has grown at 36.4% a year over 3 years.

🟢 EPS has grown at 33.6% a year over 3 years.

🟢 ROE has risen from 9.7% to 11.4% over 3 years (+1.7 pts).

🟢 ROCE has risen from 6.8% to 12.5% over 3 years (+5.7 pts).

🔴 Free Cash Flow has turned negative, from ₹28 Cr to -₹657 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹5,938 Cr

Total Liabilities

₹1,782 Cr

Cash & Equivalents

₹53 Cr

Operating Cash Flow

-₹590 Cr

Capex

-₹67 Cr

Shareholding (proxy)

Institutional Holding

26.2%

Insider Holding

57.0%

Corporate Actions

Dividend Rate

₹7

Ex-Dividend Date

11 Sept 2026

Analyst Consensus

Recommendations

5 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹1,432

+49.9% vs CMP

Target Range

₹1,280 – ₹1,700

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

4 mixed1 negative1 general

Techno Electric & Engineering Company Share Price Rises

Univest, 18 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Techno Electric & Engineering (BSE:542141) Stock Forecast & Analyst Predictions

Simply Wall Street, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Why Techno Electric & Engineering Share Price is Falling

Equitymaster, 26 MayPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

TECHNOE Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Techno Electric & Engineering Company consolidated net profit declines 31.44% in the June 2026 quarter

Business Standard, 12 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Techno Electric & Engineering (TECHNOE.NS) Slips 1.89% to ₹979.70 as ₹930 Support Comes Into Focus - McClellan Oscillator

siam.in, 05 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Profitability

MiddlingFinancial Health · Growth · Valuation

WeakRisk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑