Technofab Engineering Limited provides engineering, procurement, and construction services on a turnkey basis across various industrial and infrastructure sectors.
The last earnings update was 263 days ago.
Discounted Cash Flow Calculation for NSEI:TECHNOFAB using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
NSEI:TECHNOFAB DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Technofab Engineering's share price is below the future cash flow value, and at a moderate discount (> 20%).
Technofab Engineering's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Technofab Engineering's earnings available for a low price, and how does
this compare to other companies in the same industry?
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Technofab Engineering has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Construction industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Technofab Engineering's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Technofab Engineering's earnings growth to the India market average as no estimate data is available.
Unable to compare Technofab Engineering's revenue growth to the India market average as no estimate data is available.
Unable to determine if Technofab Engineering is high growth as no earnings estimate data is available.
Unable to determine if Technofab Engineering is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Technofab Engineering's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Technofab Engineering's finances.
The net worth of a company is the difference between its assets and liabilities.
Technofab Engineering is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Technofab Engineering's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Technofab Engineering's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Debt is covered by short term assets, assets are 5.6x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Arjun Gupta has been Managing Director and Whole Time Director of Technofab Engineering Limited since January 15, 2019 and April 1, 2008 respectively. Mr. Gupta has about ten years of experience in Turnkey Projects and products related Sales & Marketing, 115 Contracts and Design & Engineering. He was instrumental in completion of many Turnkey Projects for Technofab Engineering both in India and abroad. Mr. Gupta holds a Bachelor's Degree in Mechanical Engineering from University of Texas, Austin.
Arjun's compensation has been consistent with company performance over the past year, both up more than 20%.
Arjun's remuneration is higher than average for companies of similar size in India.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Technofab Engineering management team is about average.
MD & Whole Time Director
Chief Financial Officer
Compliance Officer & Company Secretary
Assistant General Manager of Accounts
Executive Vice President
Chief General Manager
Chief General Manager of Projects
Chief General Manager
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Technofab Engineering board of directors is about average.
Technofab Engineering Limited (NSE:TECHNOFAB): Commentary On Fundamentals
Technofab Engineering Limited (NSE:TECHNOFAB) is a company with exceptional fundamental characteristics. … is a company that has been able to sustain great financial health, trading at an attractive share price. … report on Technofab Engineering here
Does Technofab Engineering Limited’s (NSE:TECHNOFAB) ROCE Reflect Well On The Business?
Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.
What Kind Of Shareholder Appears On The Technofab Engineering Limited's (NSE:TECHNOFAB) Shareholder Register?
The big shareholder groups in Technofab Engineering Limited (NSE:TECHNOFAB) have power over the company. … With a market capitalization of ₹873m, Technofab Engineering is a small cap stock, so it might not be well known by many institutional investors. … We can zoom in on the different ownership groups, to learn more about TECHNOFAB
Do You Like Technofab Engineering Limited (NSE:TECHNOFAB) At This P/E Ratio?
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … Technofab Engineering has a price to earnings ratio of 8.23, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Historically, Technofab Engineering Limited (NSE:TECHNOFAB) has been paying a dividend to shareholders. … Let's dig deeper into whether Technofab Engineering should have a place in your portfolio. … Check out our latest analysis for Technofab Engineering
Is Technofab Engineering Limited's (NSE:TECHNOFAB) CEO Paid At A Competitive Rate?
This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Avinash Gupta's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Technofab Engineering Limited has a market cap of ₹1.5b, and is paying total annual CEO compensation of ₹20m.
Technofab Engineering Limited’s (NSE:TECHNOFAB) Investment Returns Are Lagging Its Industry
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.
What Kind Of Shareholders Own Technofab Engineering Limited (NSE:TECHNOFAB)?
A look at the shareholders of Technofab Engineering Limited (NSE:TECHNOFAB) can tell us which group is most powerful. … With a market capitalization of ₹1.6b, Technofab Engineering is a small cap stock, so it might not be well known by many institutional investors. … Check out our latest analysis for Technofab Engineering
Do You Know What Technofab Engineering Limited's (NSE:TECHNOFAB) P/E Ratio Means?
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll look at Technofab Engineering Limited's (NSE:TECHNOFAB) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
How Financially Strong Is Technofab Engineering Limited (NSE:TECHNOFAB)?
While small-cap stocks, such as Technofab Engineering Limited (NSE:TECHNOFAB) with its market cap of ₹1.6b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Evaluating financial health as part of your investment thesis is. … I believe these basic checks tell most of the story you need to know.
Technofab Engineering Limited provides engineering, procurement, and construction services on a turnkey basis across various industrial and infrastructure sectors. The company undertakes projects in thermal power, nuclear power, water and waste water treatment, electrical, oil and gas, and industrial sectors. It also provides project management services, including evaluation of enquiries and submission of proposals, engineering and design, system drawings, bill of materials, procurement, logistics, construction, testing and commissioning, and after sales service, as well as planning, scheduling, and resulting. The company has operations in India, Ghana, Ethiopia, Kenya, Zambia, Fiji, Malawi, Mozambique, Tanzania, Liberia, Zimbabwe, Uganda, Rwanda, Bhutan, and Seychelles. Technofab Engineering Limited was incorporated in 1971 and is based in Faridabad, India.
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