Techno Electric & Engineering Company Ltd.
ISIN: INE285K01026 • Market Cap: ₹11,603 Cr
The 5-Pillar Quality Audit for Techno Electric & Engineering Company Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (14.0%), Return on Capital Employed (12.0%), and equity compounding (11.3%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.01 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (59.3%) and 3Y PAT CAGR (32.1%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 26.92 vs PEG of 2.32 and Dividend Yield of 0.7%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 56.9%, backed by 29.7% institutional ownership.
Key Fundamental Strengths
Fortress Balance Sheet (D/E: 0.01)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Strong Topline Expansion (3Y Sales CAGR: 59.3%)
Revenue has expanded at 59.3% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 32.1%)
Net earnings have compounded at 32.1% annualized, demonstrating operating leverage.
Deep Institutional Sponsorship (29.7%)
Mutual funds, domestic DIIs, and foreign FIIs hold 29.7%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Construction)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Construction space.
Quantitative Strategy Eligibility
Checking TECHNOE against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 77/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Construction Sector Peer Comparison
Compare TECHNOE directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Techno Electric & Engineering Company Ltd. (TECHNOE)Current | 77/100 | ₹11,603 Cr | 26.92 | 12.0% | 0.01 | — |
| Larsen & Toubro Ltd. (LT) | 69/100 | ₹5.54 Lakh Cr | 33.42 | 17.9% | 1.12 | View |
| Rail Vikas Nigam Ltd. (RVNL) | 48/100 | ₹46,517 Cr | 51.71 | 10.3% | 0.49 | View |
| NBCC (India) Ltd. (NBCC) | 79/100 | ₹23,571 Cr | 31.74 | 38.8% | 0.00 | View |
| Kalpataru Projects International Ltd. (KPIL) | 76/100 | ₹23,516 Cr | 20.69 | 22.9% | 0.43 | View |
| IRB Infrastructure Developers Ltd. (IRB) | 70/100 | ₹22,912 Cr | 24.01 | 6.0% | 0.96 | View |
Frequently Asked Questions: Techno Electric & Engineering Company Ltd.
Q:What is the 5-Pillar Fundamental Score for Techno Electric & Engineering Company Ltd. (TECHNOE)?
Techno Electric & Engineering Company Ltd. has a RupeeTools Fundamental Score of 77/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (57/100), Financial Health (85/100), Growth (99/100), Valuation (63/100), and Ownership Quality (78/100).
Q:Is TECHNOE fundamentally strong for long-term investment?
Yes, TECHNOE exhibits solid fundamental strength with a 77/100 score, driven by a return on equity of 11.3% and a debt-to-equity ratio of 0.01.
Q:Does TECHNOE pass the Coffee Can Investing filter?
No. TECHNOE does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does TECHNOE compare against other Construction peers?
Within India's Construction sector, TECHNOE trades at a P/E of 26.92 and generates an ROCE of 12.0%. Compare its 5-Pillar score of 77/100 against top sector peers like Larsen & Toubro Ltd. (69/100), Rail Vikas Nigam Ltd. (48/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.