#TCIE

25 Jul

Reasons to Buy the Stock

• *Debt-Free Status:
  

The company is almost debt-free, which reduces financial risk and interest obligations, enhancing profitability.

Healthy Dividend Payout:

The company has been maintaining a healthy dividend payout of 21.1%, indicating a strong cash flow and commitment to returning value to shareholders.

• Strong Return Ratios:
  

With a Return on Capital Employed (ROCE) of 26.5% and Return on Equity (ROE) of 20.2%, the company demonstrates efficient use of capital and strong profitability.

Price to Earnings Ratio:

The P/E ratio of 35.6, though higher, is justified by the company's robust financial metrics and growth prospects.

Consistent Profitability:

The company has shown consistent net profits and positive EPS over the years, indicating stable operations and financial health.

Future Investments and Planning

Expanding Fixed Assets:

The increase in fixed assets from ₹320 Cr in 2022 to ₹452 Cr in 2024 suggests ongoing investments in infrastructure and capacity expansion.

Strategic Investments:

The company has increased its investments significantly from ₹33 Cr in 2023 to ₹94 Cr in 2024, indicating strategic moves to enhance its growth and market position.

Research and Development:

Continued investments in CWIP (Capital Work in Progress) reflect a focus on new projects and innovation to maintain a competitive edge.

Dividend Policy:

Maintaining a healthy dividend payout shows the company’s commitment to reward shareholders while reinvesting for future growth.

Key Metrics

• Metric Value
  
• Market Cap ₹4,661 Cr.
  
• Current Price ₹1,215
  
• High / Low ₹1,605 / 998
  
• Stock P/E 35.6
  
• Book Value ₹184
  
• Dividend Yield 0.68%
  
• ROCE 26.5%
  
• ROE 20.2%
  
• Face Value ₹2.00
  
• Promoter Holding 69.61%
  

Financial Performance

Sales Growth: The company’s sales have grown from ₹844 Cr in 2021 to ₹1,254 Cr in 2024, showing steady growth.

Net Profit: The net profit has increased from ₹101 Cr in 2021 to ₹132 Cr in 2024, reflecting improved profitability.


#TCIE 1213

SHORT & POSITIONAL TERM TARGETS: 1360, 1586, 1768, 1950, 2209 & 2540