Angel Broking's Views on the IPO,
At the upper price band, Tecpro is projected to trade at a P/E and EV/EBDITA of 16.5x and 8.3x its FY2010 earnings, respectively. When compared with its immediate competitors, viz., Mcnally Bharat and TRF, the scrip is available at a discount of ~10-15% on FY2010 earnings. In addition, over the past five
years the company has grown at a scorching pace along with successfully entering the BoP-EPC segment. As and when Tecpro begins to accumulate and
execute larger size BoP projects going ahead, it will be able to command premium valuations on superior growth and profitability margins. The successful
execution of few BoP projects over the next couple of years may also result in Tecpro exploring the feasibility of taking up complete EPC for power plants (ie
BTG + BoP), which would place it in league with BGR Energy. We recommend a Subscribe view on the IPO.