Techno Electric & Engineering Company Limited (TECHNOE) AI Stock Analysis

Techno Electric & Engineering Company Limited

(NSE:TECHNOE)

Select Model

Rating:55Neutral

Price Target:INR 851.00▲(1.00% Upside)

Action:reiterated

Date:08/28/26

Techno Electric earns a moderate score. The most significant risk is cash flow: despite healthy reported profits, free cash flow is projected to swing deeply negative in FY2026, and margins have compressed consistently as revenue has scaled. Offsetting this, the company maintains an exceptionally clean, near-debt-free balance sheet with rapidly growing equity and strong double-digit revenue expansion — genuine strengths in its sector. Technicals add further pressure, with the price below all major moving averages and a negative MACD signalling an established downtrend. A P/E near 27 and a sub-1% dividend yield leave little valuation cushion. The result is a company with solid growth and balance sheet discipline, but weak near-term momentum and cash conversion that warrant caution.

Positive Factors

Very low leverageVery low leverage gives Techno Electric substantial financial flexibility to absorb the cyclicality inherent in engineering and construction. The large equity base and growing asset base can support project execution and investment without creating significant debt-service pressure.

Negative Factors

Volatile cash generationRecurring swings into negative operating and free cash flow indicate that reported earnings are not consistently converting into cash. This can reduce internally available funding and make project timing, collections, or working-capital management more important to near-term financial resilience.

Techno Electric & Engineering Company Limited (TECHNOE) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 96.45B
Dividend Yield: 0.84%
Average Volume (3M): 20.18K
Price to Earnings (P/E): 22.4
Beta (1Y): 1.50
Revenue Growth: 38.72%
EPS Growth: -6.77%
Country: India
Employees: 703
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

Techno Electric & Engineering Company Limited Business Overview & Revenue Model

Company Description

Techno Electric & Engineering Company Limited (TEEC) is an Indian firm that provides specialized engineering, procurement, and construction (EPC) services, focusing primarily on the power generation, transmission, and distribution sectors. The compan...

Techno Electric & Engineering Company Limited Financial Statement Overview

Summary

A mixed profile. The balance sheet is a standout strength (score 78): near debt-free with a 1.0% debt-to-equity ratio in FY2025, equity growing from ₹16.2B (FY2021) to ₹37.4B (FY2025), and total assets more than doubling — rare financial flexibility for a capital-intensive Engineering & Construction firm. The income statement (score 68) shows strong revenue growth from ₹8.9B in FY2021 to ₹22.7B in FY2025 with ₹32.5B projected for FY2026, but margins are steadily compressing (gross margin ~36% to ~22%, net margin ~26.4% to ~18.6%, EBITDA margin toward ~14.2% projected). Cash flow is the weak link (score 38): operating cash flow has swung erratically from +₹2.6B (FY2022) to -₹2.0B (FY2024), recovered to ₹5.2B (FY2025), and is projected at -₹5.0B in FY2026 with free cash flow at -₹5.7B. This earnings-to-cash disconnect points to working capital or project timing strain and is the primary drag on the score.

Income Statement

68Positive

Balance Sheet

78Positive

Cash Flow

38Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	33.56B	32.52B	22.69B	15.02B	8.29B	9.99B
Gross Profit	6.51B	5.76B	5.01B	3.39B	2.01B	2.51B
EBITDA	5.70B	6.11B	3.39B	2.09B	876.19M	1.92B
Net Income	4.31B	4.74B	4.23B	2.68B	1.87B	2.64B
Balance Sheet
Total Assets	0	59.38B	50.56B	28.34B	27.79B	25.16B
Cash, Cash Equivalents and Short-Term Investments	23.31B	23.31B	29.31B	12.79B	14.50B	10.94B
Total Debt	0	724.93M	390.92M	0	0	0
Total Liabilities	-41.57B	17.82B	13.17B	6.72B	8.39B	6.79B
Stockholders Equity	41.57B	41.57B	37.40B	21.63B	19.30B	18.37B
Cash Flow
Free Cash Flow	-2.07B	-5.67B	3.51B	-3.79B	315.08M	2.25B
Operating Cash Flow	-1.75B	-5.00B	5.19B	-1.98B	344.22M	2.58B
Investing Cash Flow	2.76B	5.93B	-17.07B	2.69B	714.05M	-2.24B
Financing Cash Flow	-919.58M	-725.85M	11.86B	-845.06M	-1.03B	-627.63M

Techno Electric & Engineering Company Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price842.60

Price Trends

50DMA957.61Negative

100DMA992.25Negative

200DMA1048.45Negative

Market Momentum

MACD-39.78Positive

RSI28.98Positive

STOCH27.41Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TECHNOE, the sentiment is Negative. The current price of 842.60 is below the 20-day moving average (MA) of 915.24, below the 50-day MA of 957.61, and below the 200-day MA of 1048.45, indicating a bearish trend. The MACD of -39.78 indicates Positive momentum. The RSI at 28.98 is Positive, neither overbought nor oversold. The STOCH value of 27.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TECHNOE.

Techno Electric & Engineering Company Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:TECHNOE against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:KPIL	78Outperform	INR 228.07B	20.10	―	0.82%	14.56%	58.06%
IN:LT	68Neutral	INR 5.31T	27.40	―	0.99%	11.15%	17.37%
IN:POWERMECH	59Neutral	INR 68.39B	17.48	―	0.07%	15.79%	22.69%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:TECHNOE	55Neutral	INR 96.55B	22.38	―	0.84%	38.72%	-6.77%
IN:KEC	52Neutral	INR 87.75B	15.85	―	1.67%	5.14%	-9.35%
IN:IRCON	36Underperform	INR 90.90B	17.35	―	1.97%	-9.92%	-21.60%

* General Sector Average

Performance Comparison

IN:TECHNOE and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:TECHNOE	Techno Electric & Engineering Company Limited	830.15	-464.93	-35.90%
IN:IRCON	IRCON International Ltd.	96.65	-69.06	-41.67%
IN:KEC	KEC International Ltd.	329.65	-469.74	-58.76%
IN:KPIL	Kalpataru Projects International Limited	1335.50	32.45	2.49%
IN:LT	Larsen & Toubro Limited	3858.00	-25.27	-0.65%
IN:POWERMECH	Power Mech Projects Ltd.	2163.15	-302.53	-12.27%

Techno Electric & Engineering Company Limited Corporate Events

Techno Electric appoints seasoned finance executive Aninda Chatterjee as independent director

Sep 24, 2026

Techno Electric & Engineering Company Limited has appointed Mr. Aninda Chatterjee as a Non-Executive Independent Director for a five-year term, effective September 23, 2026, following shareholder approval via a special resolution. Chatterjee brin...

Techno Electric Sets Record Date and AGM Schedule for Final Dividend

Sep 1, 2026

Techno Electric & Engineering Company Limited has set 11 September 2026 as the record date for determining shareholders eligible to receive a proposed final dividend of Rs 7 per equity share for the 2025-26 financial year. The payout, subject to...

Techno Electric publishes investor presentation on Q1 FY2026 results

Aug 12, 2026

Techno Electric & Engineering Company Limited has notified the stock exchanges that it has released an investor and analyst presentation, along with a transcript and recording link, covering the company’s financial results for the quarter e...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 28, 2026

Techno Electric & Engineering Company Limited AI Stock Analysis