Techno Electric & Engineering Company shares dive 18% after Q3 results

Shares of Techno Electric & Engineering Company slumped in Wednesday's trade after declaring the December quarter (Q3 FY23) results. The stock plunged 17.53 per cent to hit a day low of Rs 305.85 over its previous close of Rs 370.85. Around 47,000 shares changed hands today on BSE, which was more than three times compared to Techno Electric's two-week average volume of 14,000 shares. Turnover on the counter stood at Rs 1.49 crore, commanding a market capitalisation (m-cap) of Rs 3,664.65 crore. There were 11,582 sell orders today against buy orders of 6,120 shares.

Techno Electric's net profit declined 72.52 per cent to Rs 31.32 crore in the quarter that ended December 2022 as against Rs 113.99 crore during the same period a year ago (Q3 FY22). The company's sales declined 37.74 per cent to Rs 185.26 crore in Q3 FY23 as against Rs 297.56 crore during the previous quarter that ended December 2021. Total expenses came at Rs 165.32 crore in Q3.

At today's day low of Rs 305.85, the stock traded 21.78 per cent lower from its 52-week high of Rs 391, hit on February 10, 2023. That said, it has gained 38.39 per cent from its one-year low of Rs 221, touched on February 24 last year.

The stock was last seen trading higher than 100-day and 200-day moving averages but lower than 5-day, 20- and 50-day moving averages. The counter's 14-day relative strength index (RSI) came at 39.30. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 24.56.

Techno Electric has an average target price of Rs 490, Trendlyne data showed, suggesting a potential upside of 48.98 per cent. The scrip has a one-year beta of 0.86, indicating low volatility on the counter.

Techno Electric is among India's most important power-infrastructure companies. It caters to Engineering, Procurement and Construction (EPC), asset ownership and operations and maintenance services in the three industry segments of generation, transmission and distribution. Incorporated in 1963 and headquartered in Kolkata, the company's operations are spread across India and abroad. It was established with the aim to provide comprehensive EPC services to core sector industries in India. The company said it has assumed a leadership position on the back of association with state-of-the-art technology manufacturers and high standards of quality management, competent human resources and resourceful financing.

Meanwhile, Indian equity benchmarks were mixed in late morning deals as losses in consumer goods and pharma stocks countered gains in automobile and metals. As of 11:13 am, the 30-share BSE Sensex pack fell 47 points or 0.08 per cent to trade at 60,985; while the broader NSE Nifty index edged 2 points or 0.01 per cent higher to trade at 17,932.

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