Brokerage house Anand Rathi is bullish on Techno Electric and Engineering Company Limited and has a buy rating on the stock with a target price of Rs 338 per share.
The stock ended 3.07 per cent higher at Rs 251.90 against the previous close of Rs 244.40. Market cap of the firm rose to Rs 2,770.90 crore. The shares stand higher than 5 day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages.
The company reported healthy set of numbers for the quarter ended December 2021. The consolidated profit of the company jumped 105 per cent to Rs 114.87 crore for the quarter ended December 2021 as against a net profit of Rs 56 crore in the year-ago quarter. The company's net sales were up 22.5 per cent to Rs 1,115.69 crore during the quarter.
Anand Rathi noted that the government’s intent to install 200m smart/prepaid meters by Mar 2024 to curb discom losses would benefit the company in the near to medium term.
"To address the strong opportunity in data centres in India, the company is setting up a 30MW data centre at Chennai, to be increased to 250-300MW in coming years at several locations. It will also be building energy storage systems," the brokerage house said.
"We are positive on the long-term opportunities arising from the government’s push in Flue Gas Desulphurization (FGD), evacuation of renewable power, related infrastructure, “smart” metering and data centres. We tweak our estimates considering the continuing higher raw material prices for a few more quarters and the lower-than-expected orders in 9M FY22, which could impact revenue," it added.
The brokerage house expects 19 per cent and 26 per cent revenue and PAT CAGR of FY21-24e.
Recently, Techno Electric & Engineering Company Limited and Kalpataru Power Transmission Limited, a joint venture partner in Kohima-Mariani Transmission Limited completed transfer of 49 per cent stake (26 per cent by TECHNO and 23 per cent by KPTL) in KMTL to Apraava Energy Private Limited (formerly known as CLP India Private Limited).
KMTL is a joint venture between TECHNO and KPTL wherein, TECHNO holding 26 per cent and KPTL 74 per cent equity. TECHNO and KPTL had entered into a binding agreement in July 2019 with Apraava Energy Private Limited to sell their respective stake in KMTL.
Copyright©2023 Living Media India Limited. For reprint rights: Syndications Today