Power stock engaged in offering Engineering, Procurement & Construction (EPC) services for the Power Infrastructure and Data Centers jumped 4 percent in the day’s trade upon receiving new work order to design, build and operate data centers in 102 Indian Cities.
Price Action
With a market capitalization of Rs. 19,422 Crores, the shares of Techno Electric & Engineering Company Limited were trading at Rs. 1,670.05 per equity share, up 3 percent from its previous day’s close price of Rs. 1,622.10. It has delivered multibagger returns of 205 percent in a year.
What Happened
Techno Electric & Engineering Company Limited has received a new work order from Railtel Corporation of India Limited to Design, Build, Finance, Operate, and Transfer Edge Data Centers in 102 cities across India over a twenty-year concession period extendable by five years as its Business Associate.
How will it Benefit
With the establishment of Edge Data Centers, Techno Electric’s data centre vertical is taking significant steps to enhance the digital experience and drive the widespread adoption of digital services among residents of rural and urban areas, thereby contributing to the country’s Digital India mission.
Edge Data Centers in India will play a pivotal role in meeting the low latency and high bandwidth requirements that are essential for a range of applications, including digital skills, financial inclusion, digital health & literacy, Al, AR, Internet of Things (loT), content delivery, and cloud gaming. This infrastructure will ensure that clients receive optimal digital experiences, driving innovation and progress in various sectors.
In addition, Edge Data Centers will offer major benefits to Internet Service Providers (ISPs) and Content Delivery Networks (CDNs) by reducing latency and enhancing speed. This capability will enable more efficient content delivery, improve network performance, and support the increasing demand for high-quality, real-time services across the country.
About the Company
Techno Electric & Engineering Company Limited is engaged in offering Engineering, Procurement & Construction (EPC), asset ownership, operations, and maintenance services in the power infrastructure industry. It has presence in Power Generation, Transmission & Distribution, Industrial sector and Data Centers.
It has a strong order book of Rs. 9,100.6 Crores with strong clientele base consisting of wellknown players like Power Grid Corporation of India, Adani Transmission, NTPC, Sterlite Power, REC Power Distrubiton & REC Power Transmission Projects and many others.
Financials and Ratios
Its Revenue from operations grew by 37 percent from Rs. 274 Crores in Q1FY24 to Rs. 375 Crores in Q1FY25, accompanied by profits of Rs. 25 Crores to Rs. 98 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 12.41 percent, and a return on capital employed (ROCE) of 14.88 percent. It is a debt free company with a debt-to-equity ratio of 0.
Written by: Bharath K.S
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