Techno Electric Shares Soar 9% on Healthy Growth Outlook

Picture Source: Internet

Techno Electric Engineering Company (TEEC) rose 9% to Rs 345 on the BSE intraday trade on Friday on healthy growth prospects. Civil construction company shares rallied 45% last year, with an 8% gain in the S&P BSE Sensex index. It hit an all-time high of Rs 391 on February 10, 2023.

TEEC is one of the leading electric infrastructure companies engaged in three main business areas, namely EPC (buildings), renewable energy generation (wind power) and public-private partnership (PPP) projects in transmission and distribution (T&D).

On February 8, the company sold its 37.5 MW of wind power assets for Rs 158.93 crore and entered into a memorandum of understanding to sell another 71.40 MW of assets. The move aligns with the company’s strategy to exit non-core businesses and focus on expanding its international presence and becoming a significant EPC player.

According to management, TEEC remains focused on pursuing growth in its targeted core EPC business as a long-term asset, and non-core business divestitures continue to gain momentum.

Meanwhile, the company currently has an order book of Rs 4,000 crore. For FY24, management said it has an order pipeline of Rs 5,000 crore and expects order momentum to continue in flue gas desulfurization (FGD), transmission and distribution, and smart metering. The company expects to secure another Rs 1,000 crore order in Q4YF23E, providing mid-term revenue visibility.

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