ICICI Securities is bullish on Techno Electric and Engineering recommended buy rating on the stock with a target price of Rs 252 in its research report dated September 02, 2020.
ICICI Securities research report on Techno Electric and Engineering
Techno Electric & Engineering (TEEC) has reported better-than-expected margins under EPC segments in Q1FY21. The company was able to control the fixed expenses focusing on reduction in employee cost and other expenditure. It won Rs2.3bn worth of orders in the quarter and is L1 in another Rs700mn order. Order intake pipeline is strong, execution traction is gradually improving and the management is confident of a flat revenue growth in FY21E, expecting pick up in H2FY21. Factoring the stress in wind segment pricing and margins, we cut our earnings by 1.3% and 9.7% for FY21E & FY22E, respectively.
Outlook
Given strong balance sheet with cash and equivalents of Rs4bn, strong orderbook and healthy order intake outlook, we maintain BUY with a revised SoTP-based target price of Rs252 (previously: Rs231).
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