ICICI Direct Retains Buy On Small Cap Stock, Sees 26% Gains, Declares Rs 6/Share Final Dividend

Brokerage firm ICICI Direct has come up with a "Buy" rating on Techno Electric Engineering Company Ltd. (TEEC). The brokerage assigned Rs 480/share target price on the stock of TEEC.

With the given target price, it claims a potential upside of up to 26% from its current level if purchased at the current market price. It is a small-cap engineering stock with a market capitalisation of Rs. 4,111.58 crore.

Final Dividend

The Board of Directors of TEEC, in its board meeting held on May 29, 2023, recommended a final dividend of Rs. 6/share of face value of Rs. 2 each for the financial year 2022-23.

"recommended Final Dividend for the financial year 2022-23 @ Rs.6/- (Rupees Six) per Equity share of face value of Rs.2/-," the company said in an exchange filing.

Q4FY23 Results

According to ICICI Direct, TEEC reported a weak set of Q4FY23 numbers. Consolidated revenues came in at Rs. 313 crore, grew by 2.5% YoY. EBITDA came in at Rs. 3.1 crore, de-grew by 91.6% YoY with margins at 1%, contracting 1115bps YoY. Consequently, PAT de-grew by 97.5% YoY to Rs. 1.1 crore.

Buy for a target price of Rs. 480/share

According to ICICI Direct. Strong pick-up in execution, sale of wind energy assets and foray into data centre business to drive strong financial performance, going ahead. "We continue to remain positive and retain our BUY rating on the stock. We value TEEC at Rs. 480 i.e. 20x PE on FY25E," the brokerage has said.

Stock Outlook

On Friday, the share price of TEEC closed 0.13% down at Rs. 382.05/share. The stock declined 4.61% in the past in 1 week. It has given 20.46% positive return in 1 year and 94.28% in 3 years, respectively.

The stock's 52 week high is Rs. 409/share recorded on 29 May 2023, and 52 week is Rs. 231.20/share recorded on 20 June 2022, respectively.

About - Techno Electric Engineering Company Ltd. (TEEC)

Techno Electric Engineering Company (TEEC) is one of the leading power-infrastructure companies engaged in two primary business segments; EPC (construction), renewable power generation (wind power).
EPC Business: Contributed ~92% to FY23 revenue, generated excellent RoCE of 50- 75% over the past five years.
Wind power: TEEC owns ~21 MW of wind power generation capacity.

Disclaimer - The stock has been picked from the brokerage report of ICICI Direct. 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 consult with certified experts before making any investment decision.