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Technical Outlook

• The BSE power index gave a breakout above 2008 highs after decade long consolidation. Within power infra segment, Techno Electric is on the cusp of breakout from four year’s consolidation indicating structural turnaround

• The stock has witnessed renewed buying momentum over past few months and forming higher highlow indicating steady uptrend. We expect rallies to further accelerate above 320 which acted as hurdle on numerous occasions

• The target of | 410 is projected based on 123.6% external retracement of 2021 decline (362- 224)

Fundamental Outlook

• Techno Electric Engineering Company (TEEC) is one of the leading power-infrastructure companies engaged in three primary business segments; EPC (construction), renewable power generation (wind power) and public-private partnership (PPP) projects in transmission & distribution (T&D)

• EPC Business: Contributed ~92% to FY22 revenue, generated excellent RoCE of 50-75% over the past five years. PPP projects business: It is present in BOOT/BOOM transmission projects in PPP mode. Wind Power: TEEC owns ~130 MW of wind power generation capacity

• Entry into data centre, smart meters and FGD market and becoming significant EPC player that improves revenue visibility over the next few years. The company has a healthy balance sheet and cash balance of | 1200 crore

• During Q2FY23, the company booked orders worth | 400 crore against | 500 crore in Q2FY22 and | 1900 crore in Q1FY23. Current order book was at | 3600 crore. For FY23, the management has maintained its order inflow guidance of | 3000 crore across from FGD, T&D, smart metering and data centres

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