Thejo Engineering Ltd. (THEJO) AI Stock Analysis

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Thejo Engineering Ltd.

(NSE:THEJO)

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Rating:66Neutral

Price Target:INR 2,170.00▲(4.57% Upside)

Action:downgraded

Date:11/01/26

The score is supported primarily by solid financial performance, a strong balance sheet, and consistent profitability. Weak recent free cash flow, negative MACD momentum, and a high P/E ratio weigh on the result.

Positive Factors

Revenue GrowthSustained multi-year revenue expansion, followed by a return to growth in 2026, indicates continued demand for THEJO’s industrial products and services. This supports operating scale, customer relevance, and the company’s ability to build earnings capacity over the next several quarters.

Negative Factors

Weak Cash ConversionThe sharp 2026 free-cash-flow decline and lower operating cash flow indicate weaker conversion of reported earnings into cash or higher reinvestment needs. Persistent volatility could limit internally funded growth, shareholder returns, and flexibility during weaker industrial spending cycles.

Thejo Engineering Ltd. (THEJO) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 21.21B
Dividend Yield: 0.24%
Average Volume (3M): 7,945
Price to Earnings (P/E): 40.4
Beta (1Y): 0.82
Revenue Growth: 20.87%
EPS Growth: 12.63%
Country: India
Employees: 1,761
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Thejo Engineering Ltd. Business Overview & Revenue Model

Company Description

Established in Chennai, India, in 1974, Thejo Engineering Limited develops, manufactures, markets, and provides services for industrial products primarily based on rubber and polyurethane. These specialized engineering solutions are vital for bulk ma...

How the Company Makes Money

THEJO primarily makes money by selling industrial products and services related to conveyor and bulk material-handling operations. Key revenue streams include: (1) sale of conveyor-related and wear-protection products (including components used to re...

Thejo Engineering Ltd. Financial Statement Overview

Summary

Solid profitability, revenue growth, strong balance sheet, and conservative leverage support the score. Margin compression and sharply weaker recent free cash flow limit upside.

Income Statement

78Positive

Balance Sheet

82Very Positive

Cash Flow

65Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	6.74B	6.32B	5.53B	5.59B	4.74B	4.24B
Gross Profit	3.70B	2.87B	2.44B	3.15B	3.67B	2.51B
EBITDA	935.53M	869.49M	927.58M	1.02B	625.73M	699.59M
Net Income	560.02M	492.60M	498.94M	556.39M	324.18M	376.30M
Balance Sheet
Total Assets	0	5.49B	4.46B	4.14B	3.64B	3.03B
Cash, Cash Equivalents and Short-Term Investments	614.68M	665.17M	779.53M	654.11M	608.15M	459.07M
Total Debt	0	408.37M	299.80M	425.12M	453.08M	381.24M
Total Liabilities	-3.79B	1.70B	1.26B	1.41B	1.45B	1.17B
Stockholders Equity	3.79B	3.54B	2.98B	2.50B	1.96B	1.65B
Cash Flow
Free Cash Flow	159.35M	60.01M	288.45M	292.72M	91.60M	126.03M
Operating Cash Flow	282.12M	405.09M	697.34M	518.07M	586.07M	273.02M
Investing Cash Flow	-376.30M	-627.82M	-451.04M	-190.89M	-504.55M	-146.56M
Financing Cash Flow	-96.22M	-85.26M	-188.64M	-151.46M	-80.72M	-443.00K

Thejo Engineering Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price2075.20

Price Trends

50DMA2061.60Positive

100DMA2013.17Positive

200DMA1844.39Positive

Market Momentum

MACD-18.95Negative

RSI57.26Neutral

STOCH46.53Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:THEJO, the sentiment is Positive. The current price of 2075.20 is above the 20-day moving average (MA) of 1962.13, above the 50-day MA of 2061.60, and above the 200-day MA of 1844.39, indicating a bullish trend. The MACD of -18.95 indicates Negative momentum. The RSI at 57.26 is Neutral, neither overbought nor oversold. The STOCH value of 46.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:THEJO.

Thejo Engineering Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:THEJO against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:PIXTRANS	79Outperform	INR 23.47B	16.79	―	0.52%	4.81%	16.32%
IN:ELECON	71Outperform	INR 96.36B	39.44	―	0.47%	4.79%	-52.69%
IN:THEJO	66Neutral	INR 21.21B	40.40	―	0.24%	20.87%	12.63%
IN:PENIND	62Neutral	INR 21.88B	15.98	―	―	9.17%	14.00%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:JYOTISTRUC	53Neutral	INR 12.89B	22.36	―	―	54.18%	50.49%
IN:TRF	43Neutral	INR 2.25B	4.49	―	―	5.17%	340.38%

* General Sector Average

Performance Comparison

IN:THEJO and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:THEJO	Thejo Engineering Ltd.	2075.20	388.39	23.03%
IN:ELECON	Elecon Engineering Co. Ltd.	429.80	-103.69	-19.44%
IN:JYOTISTRUC	Jyoti Structures Ltd.	12.96	1.30	11.15%
IN:PENIND	Pennar Industries Limited	168.40	-56.60	-25.16%
IN:PIXTRANS	PIX Transmissions Ltd	1738.40	286.69	19.75%
IN:TRF	TRF Limited.	207.05	-114.95	-35.70%

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: Nov 01, 2026

Thejo Engineering Ltd. AI Stock Analysis