From Mar­gins to Or­der Book, Techno Elec­tric is All Lit Up

The maker of elec­tric­ity sub-sta­tions, with sen­si­ble bid­ding, has en­sured su­pe­rior mar­gins and re­turn ra­tios; may main­tain 20-22% growth in or­der book

The Economic Times - - Smart -

crore, the com­pany is tar­get­ing to bag or­ders of nearly ₹ 11,000 crore.

The com­pany has fol­lowed an as­set­light model. This has boosted its fixed as­set turnover ra­tio to 43 as com­pared to the sec­tor’s 5-6. It plans to exit wind power busi­ness which has been de­press­ing its con­sol­i­dated RoCE.

The com­pany ex­pects to main­tain an an­nu­alised growth of 20-22% in or­der book­ing dur­ing the rest of 12th fiveyear plan. The com­pany’s stock trades at 17 times FY17 pro­jected earn­ings. Ac­cord­ing to Bloomberg con­sen­sus es­ti­mates, rev­enue and profit is ex­pected to grow by 19% and 29% re­spec­tively for FY17, which jus­tify the cur­rent val­u­a­tion.

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