Thejo Engineering (NSEI:THEJO) - Share price, News & Analysis

THEJO fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	5/6
Financial Health	6/6
Dividends	2/6

THEJO Stock Overview

Rewards

Price-To-Earnings ratio (23.8x) is below the Machinery industry average (24.1x)

Earnings have grown 27% per year over the past 5 years

Risk Analysis

No risks detected for THEJO from our risk checks.

Thejo Engineering Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Thejo Engineering
Historical stock prices
Current Share Price	₹850.00
52 Week High	₹1,398.00
52 Week Low	₹741.67
Beta	0.37
1 Month Change	-10.53%
3 Month Change	-23.77%
1 Year Change	3.94%
3 Year Change	400.00%
5 Year Change	n/a
Change since IPO	630.24%

Recent News & Updates

Mar 14

Thejo Engineering (NSE:THEJO) Is Very Good At Capital Allocation

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Feb 15

I Ran A Stock Scan For Earnings Growth And Thejo Engineering (NSE:THEJO) Passed With Ease

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Nov 30

Investors Should Be Encouraged By Thejo Engineering's (NSE:THEJO) Returns On Capital

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Firstly, we'd want to...

Shareholder Returns

	THEJO	IN Machinery	IN Market
7D	-4.2%	2.2%	2.3%
1Y	3.9%	22.8%	-0.9%

Return vs Industry: THEJO underperformed the Indian Machinery industry which returned 22.8% over the past year.

Return vs Market: THEJO exceeded the Indian Market which returned -0.9% over the past year.

Price Volatility

Is THEJO's price volatile compared to industry and market?
THEJO volatility
THEJO Average Weekly Movement	7.3%
Machinery Industry Average Movement	6.5%
Market Average Movement	6.9%
10% most volatile stocks in IN Market	9.9%
10% least volatile stocks in IN Market	4.5%

Stable Share Price: THEJO is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: THEJO's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1974	1,293	Manoj Joseph	https://www.thejo-engg.com

Thejo Engineering Limited designs, manufactures, markets, and services rubber and polyurethane based engineering products for belt conveyor based bulk material handling systems, mineral processing, and corrosion protection applications in India and internationally. The company provides conveyor care products, including belt conveyor splicing and repair chemicals, vulcanizing equipment, handling equipment, pulley protection, and splicing and repair tools; and transfer point solutions, such as belt cleaners and trackers, impact cushion pads, skirt sealing systems, and engineered chutes, as well as services. It offers dust suppression products comprising high pressure fogging systems; flow promotion products that include G force and BAZOOKA air blasters; abrasion and wear protection products and services, such as mill liners, bulk flow chutes, wear resistant panels and sheetings, pump spares, rubber hoses and fittings, and rubber lined pipes and fittings; screening solutions and services consisting of scalping and sizing, dewatering, flip flow, trommels, and grator screening medias; filtration products and services covering rubber, engineered plastic, and metallic spares; corrosion protection products comprising rubber sheetings, primers adhesives and repair putties, expansion joints and bellows, and PTFE linings and bellows, as well as fabrication and lining services; and specialty products.

Thejo Engineering Fundamentals Summary

How do Thejo Engineering's earnings and revenue compare to its market cap?
THEJO fundamental statistics
Market Cap	₹8.97b
Earnings (TTM)	₹376.30m
Revenue (TTM)	₹4.24b

23.8x

P/E Ratio

2.1x

P/S Ratio

Is THEJO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
THEJO income statement (TTM)
Revenue	₹4.24b
Cost of Revenue	₹963.23m
Gross Profit	₹3.28b
Other Expenses	₹2.91b
Earnings	₹376.30m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	35.67
Gross Margin	77.31%
Net Profit Margin	8.87%
Debt/Equity Ratio	9.0%

How did THEJO perform over the long term?

See historical performance and comparison

Dividends

0.2%

Current Dividend Yield

6%

Payout Ratio

Does THEJO pay a reliable dividends?

See THEJO dividend history and benchmarks

When do you need to buy THEJO by to receive an upcoming dividend?
Thejo Engineering dividend dates
Ex Dividend Date	Aug 18 2022
Dividend Pay Date	Sep 26 2022
Days until Ex dividend	53 days
Days until Dividend pay date	92 days

Does THEJO pay a reliable dividends?

See THEJO dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is THEJO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for THEJO?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for THEJO. This is calculated by dividing THEJO's market cap by their current preferred multiple.
What is THEJO's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹8.97b

THEJO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.1x
Enterprise Value/EBITDA	13.2x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does THEJO's PE Ratio compare to its peers?

THEJO PE Ratio vs Peers

The above table shows the PE ratio for THEJO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	22.6x

Forward PE

Price-To-Earnings vs Peers: THEJO is expensive based on its Price-To-Earnings Ratio (23.8x) compared to the peer average (22.6x).

Price to Earnings Ratio vs Industry

How does THEJO's PE Ratio compare vs other companies in the Indian Machinery Industry?

Price-To-Earnings vs Industry: THEJO is good value based on its Price-To-Earnings Ratio (23.8x) compared to the Indian Machinery industry average (24.1x)

Price to Earnings Ratio vs Fair Ratio

What is THEJO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

THEJO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	23.8x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate THEJO's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of THEJO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: THEJO (₹850) is trading above our estimate of fair value (₹26.53)

Significantly Below Fair Value: THEJO is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate THEJO's PEG Ratio to determine if it is good value.

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Future Growth

How is Thejo Engineering forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

19.0%

Forecasted Capital Goods industry annual growth in earnings

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 Thejo 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 SimplyWall St do have past financial data.

Discover growth companies

Check out Thejo Engineering's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.
Thejo Engineering competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Thejo Engineering performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

27.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: THEJO has high quality earnings.

Growing Profit Margin: THEJO's current net profit margins (8.9%) are higher than last year (8.4%).

Past Earnings Growth Analysis

Earnings Trend: THEJO's earnings have grown significantly by 27% per year over the past 5 years.

Accelerating Growth: THEJO's earnings growth over the past year (37.3%) exceeds its 5-year average (27% per year).

Earnings vs Industry: THEJO earnings growth over the past year (37.3%) underperformed the Machinery industry 42.4%.

Return on Equity

High ROE: THEJO's Return on Equity (22.9%) is considered high.

Discover strong past performing companies

Financial Health

How is Thejo Engineering's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: THEJO's short term assets (₹2.3B) exceed its short term liabilities (₹796.8M).

Long Term Liabilities: THEJO's short term assets (₹2.3B) exceed its long term liabilities (₹375.4M).

Debt to Equity History and Analysis

Debt Level: THEJO has more cash than its total debt.

Reducing Debt: THEJO's debt to equity ratio has reduced from 70.6% to 9% over the past 5 years.

Debt Coverage: THEJO's debt is well covered by operating cash flow (164.1%).

Interest Coverage: THEJO's interest payments on its debt are well covered by EBIT (18.5x coverage).

Balance Sheet

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Dividend

What is Thejo Engineering current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.24%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: THEJO's dividend (0.24%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.43%).

High Dividend: THEJO's dividend (0.24%) is low compared to the top 25% of dividend payers in the Indian market (1.89%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, THEJO has been paying a dividend for less than 10 years.

Growing Dividend: THEJO's dividend payments have increased, but the company has only paid a dividend for 4 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (5.6%), THEJO's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (16.7%), THEJO's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure

CEO

Manoj Joseph (50 yo)

2yrs

Tenure

₹5,671,000

Compensation

Mr. Manoj Joseph has been an Whole-Time Director at Thejo Engineering Limited since October 4, 2001 and serves as its Managing Director and Chief Operation Officer since June 20, 2020 and served as its Dir...

CEO Compensation Analysis

Compensation vs Market: Manoj's total compensation ($USD72.45K) is above average for companies of similar size in the Indian market ($USD38.38K).

Compensation vs Earnings: Manoj's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: THEJO's management team is considered experienced (3.1 years average tenure).

Board Members

Experienced Board: THEJO's board of directors are seasoned and experienced ( 10.4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31