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
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.