NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Though Tega Industries Ltd. derives the majority of its revenues from exports (~75%), it is optimistic about domestic prospects as well, with the acquisition of McNally. There is a healthy opportunity potential especially on the coal and iron ore front, with the renewed interest in thermal capacity addition.
Notably, in addition to traditional minerals, the company has developed capabilities on the lithium and rare earths side which it aims to capitalise on, as and when it reaches a critical mass.
In terms of guidance, consumables segment is poised to clock in a compound annual growth rate of 15-20%, while the equipments segment will grow faster, albeit on a low base.
Overall blended margin would be in the 21-22% range. Net working capital would remain in the vicinity of ~110 days.
The stock is currently trading at 67 times FY24 earnings per share. Not rated.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
