Techno Electric & Engineering Company Analysis

dividend

Pros

• Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).

Cons

• Unable to evaluate Techno Electric & Engineering's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Techno Electric & Engineering's dividend against the top 25% market benchmark as the company has not reported any payouts.

future

Pros

• Cash flow for Techno Electric & Engineering is expected to increase by more than 50% in 2 years time.
• Techno Electric & Engineering's earnings growth is expected to exceed the low risk savings rate of 7.2%.
• Performance (ROE) is expected to be above the current IN Construction industry average.
• Techno Electric & Engineering's revenue growth is expected to exceed the India market average.

Cons

• Techno Electric & Engineering's earnings are expected to grow by 12.7% yearly, however this is not considered high growth (20% yearly).
• Techno Electric & Engineering's earnings growth is positive but not above the India market average.
• Techno Electric & Engineering's earnings are expected to increase but not above the low risk growth rate next year.
• Techno Electric & Engineering's net income is expected to increase but not above the 50% threshold in 2 years time.
• Techno Electric & Engineering is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
• A decline in Techno Electric & Engineering's performance (ROE) is expected over the next 3 years.
• Techno Electric & Engineering's revenue is expected to increase but not above the 50% threshold in 2 years time.
• Techno Electric & Engineering's revenue is expected to grow by 19.6% yearly, however this is not considered high growth (20% yearly).

health

Pros

• Techno Electric & Engineering is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Techno Electric & Engineering is profitable, therefore cash runway is not a concern.
• Techno Electric & Engineering is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (346.2%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 46.7x debt.
• Techno Electric & Engineering's cash and other short term assets cover its long term commitments.
• The level of debt compared to net worth has been reduced over the past 5 years (65.5% vs 2% today).
• Techno Electric & Engineering earns more interest than it pays, coverage of interest payments is not a concern.
• Techno Electric & Engineering's level of debt (2%) compared to net worth is satisfactory (less than 40%).

Cons

• High level of physical assets or inventory.

management

Pros

• The tenure for the Techno Electric & Engineering board of directors is about average.
• Padam's remuneration is lower than average for companies of similar size in India.
• Padam's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

misc

Pros

Cons

• Techno Electric & Engineering has significant price volatility in the past 3 months.

past

Pros

• Techno Electric & Engineering's year on year earnings growth rate has been positive over the past 5 years.
• Techno Electric & Engineering used its assets more efficiently than the IN Construction industry average last year based on Return on Assets.
• Techno Electric & Engineering's earnings growth has exceeded the IN Construction industry average in the past year (4.8% vs 2.3%).

Cons

• Techno Electric & Engineering's 1-year earnings growth is less than its 5-year average (4.8% vs 14.4%)
• Techno Electric & Engineering's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Techno Electric & Engineering has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

Pros

• Techno Electric & Engineering is good value based on expected growth next year.
• Techno Electric & Engineering is good value based on earnings compared to the India market.
• 542141 outperformed the Construction industry which returned -40% over the past year.

Cons

• Techno Electric & Engineering's share price is below the future cash flow value, but not at a moderate discount (< 20%).
• Techno Electric & Engineering's share price is below the future cash flow value, but not at a substantial discount (< 40%).
• Techno Electric & Engineering is overvalued based on assets compared to the IN Construction industry average.
• Techno Electric & Engineering is overvalued based on earnings compared to the IN Construction industry average.
• 542141 underperformed the Market in India which returned -14.5% over the past year.
• BSE:542141 is flat (0.5%) underperforming the Construction industry which returned 7.1% over the past month.
• BSE:542141 is flat (0.5%) underperforming the market in India which returned 8% over the past month.