Thejo Engineering Ltd. (THEJO) AI Stock Analysis

Thejo Engineering Ltd.

(NSE:THEJO)

Select Model

Rating:76Outperform

Price Target:INR 2,383.00▲(18.62% Upside)

Action:reiterated

Date:08/01/26

The overall score reflects strong underlying business quality and price momentum balanced against a rich valuation. The most positive factor is the company’s fundamental profile: revenues and earnings have grown over several years and the balance sheet has strengthened with rising equity and modest debt, supporting resilience and capacity for expansion. Technicals are also a major contributor, as the stock trades meaningfully above all key moving averages, signaling clear upward momentum that has been sustained over the medium term. Offsetting these strengths, the valuation is elevated with a high P/E and a very modest dividend yield, implying limited margin of safety and reliance on continued earnings growth despite recent margin pressure and more volatile free cash flow.

Positive Factors

Conservative Balance SheetLow leverage and a growing equity base provide durable financial flexibility for an industrial-engineering business. This reduces refinancing and solvency risk across cycles, supports bidding on large projects, and allows the company to fund capex or absorb downturns without aggressive external financing.

Negative Factors

Weaker Cash ConversionA sharp drop and volatility in operating and free cash flow reduces the firm's ability to fund capex, working capital and returns from internal sources. Over months this forces greater reliance on external financing, raises execution risk on projects, and constrains strategic flexibility if cash trends persist.

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

Market Cap: INR 21.79B
Dividend Yield: 0.25%
Average Volume (3M): 8,335
Price to Earnings (P/E): 38.9
Beta (1Y): 1.14
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

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Thejo Engineering Ltd. Financial Statement Overview

Summary

Financial performance is solid overall, supported by steady multi‑year revenue growth, rising net income and EBIT, and a conservatively financed, strengthening balance sheet, although margin compression and volatile, recently weaker free cash flow prevent a top‑tier score.

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 Price2008.90

Price Trends

50DMA2075.17Negative

100DMA1985.83Positive

200DMA1837.39Positive

Market Momentum

MACD-47.78Positive

RSI50.10Neutral

STOCH42.56Neutral

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 2008.90 is above the 20-day moving average (MA) of 1995.21, below the 50-day MA of 2075.17, and above the 200-day MA of 1837.39, indicating a neutral trend. The MACD of -47.78 indicates Positive momentum. The RSI at 50.10 is Neutral, neither overbought nor oversold. The STOCH value of 42.56 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:THEJO	76Outperform	INR 21.79B	38.92	―	0.25%	20.87%	12.63%
IN:PIXTRANS	75Outperform	INR 22.20B	16.96	―	0.55%	4.81%	16.32%
IN:ELECON	74Outperform	INR 94.20B	38.47	―	0.48%	4.79%	-52.69%
IN:PENIND	62Neutral	INR 20.94B	14.63	―	―	9.17%	14.00%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:JYOTISTRUC	53Neutral	INR 11.71B	18.41	―	―	49.44%	41.82%
IN:TRF	47Neutral	INR 2.16B	4.25	―	―	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.	2008.90	193.30	10.65%
IN:ELECON	Elecon Engineering Co. Ltd.	419.80	-135.76	-24.44%
IN:JYOTISTRUC	Jyoti Structures Ltd.	9.81	-3.12	-24.13%
IN:PENIND	Pennar Industries Limited	154.55	-116.25	-42.93%
IN:PIXTRANS	PIX Transmissions Ltd	1629.10	171.97	11.80%
IN:TRF	TRF Limited.	195.95	-131.60	-40.18%

Thejo Engineering Ltd. Corporate Events

Thejo Engineering Wins Initial Vale Orders Under Three-Year Mill Liner Contract

Jul 3, 2026

Thejo Engineering Ltd. has secured the first tranche of purchase orders under a three-year supply contract with Brazilian mining major Vale for its THOR-R and THOR-M mill liners, following strong performance in plant trials. The initial orders cover...

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 01, 2026

Thejo Engineering Ltd. AI Stock Analysis