Multibagger midcap engineering company secures orders worth Rs 4,063 Crore; Stock surged to 52-week high price!
This post delves into Techno Electric & Engineering Company Ltd’s recent milestone in securing substantial orders, accounting for nearly 37% of its market capitalization, and its implications for the company’s growth trajectory.
Large Order Book Bolsters TEECL’s Position
TEECL’s recent order wins are substantial, with a total value equivalent to nearly 37% of the company’s current market capitalization of Rs 10,964 crore. This signifies a positive development for the company and its future prospects. The orders span various entities across the power sector, including Power Grid Corporation of India Ltd., Adani Transmission Ltd., and Millenium Challenge Account (MCA), Nepal.
Order Details and Project Scope
The contracts awarded to TEECL encompass various projects, including the establishment of substations, transmission systems, and installation of smart meters. These contracts are predominantly in the form of Engineering, Procurement, and Construction (EPC), with some falling under the Design, Build, Finance, Own, Operate, and Transfer (DBFOOT) model. Notably, the transmission and distribution segments represent substantial portions of the contracts, reflecting TEECL’s diversified portfolio. The table below provides a breakdown of the clients and the value of each order secured by TEECL:
| Entity Awarding Contract | Amount (in Crores) | Nature of Order Contract |
|---|---|---|
| Power Grid Corporation of India Ltd. | 241 | EPC |
| Aparva Energy Private Limited | 175 | EPC |
| Adani Transmission Ltd. | 120 | EPC |
| Millenium Challenge Account (MCA), Nepal | 760 | EPC of 400 KV GIS Project |
| IndiGrid Trust | 904 | EPC |
| Damodar Valley Corporation (DVC) | 291 | EPC |
| REC Power Distribution Company Ltd. | 1,571 | DBFOOT |
The contract execution period for these projects ranges between 24 and 36 months.
TEECL’s Focus on Transmission and Distribution Segments
The order breakdown further highlights TEECL’s primary area of expertise – transmission and distribution within the power sector. The total order value for transmission projects stands at Rs 2,201 crore, while distribution projects account for Rs 1,862 crore. This focus on core competencies positions TEECL favourably to capitalize on opportunities in these segments.
About Techno Electric & Engineering Company Ltd
TEECL is a Kolkata-based engineering company with a proven track record in the power sector. Established by Mr. P. P. Gupta, the company undertakes turnkey engineering, procurement, and construction (EPC) projects across the power sector’s generation, transmission, and distribution segments. TEECL has garnered recognition for its safety standards, having received the Best Safety Award from Power Grid in fiscal 2015.
Today, Shares of Techno Electric & Engineering Company Ltd traded at a new 52-week high price of Rs 1,066.95 and saw a spurt in Volume by more than 2.18 times. The stock has delivered 100.47% and 174.19% returns over 6 months and 1 year respectively.
Capitalizing on Growth Opportunities
TEECL’s recent order wins represent a significant development for the company, bolstering its order book and strengthening its position in the transmission and distribution segments of the power sector. With its expertise and proven track record, TEECL is well-positioned to capitalize on future growth opportunities within the Indian power market. The execution of these projects will likely translate into revenue generation for TEECL over the next 24-36 months, potentially impacting the company’s financial performance positively.
Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.