1. At a Glance
Technocraft Industries is a textbook case of an industrial giant hiding in plain sight. A ₹7,000 Cr market cap company with scaffolding in one hand, cotton yarn in the other, and ROCEs that’d make any value investor salivate. With 5 business segments, double-digit returns, global exposure, and a 10-year stock CAGR of 32%, this one’s not just building infrastructure — it’s building wealth.
2. Introduction with Hook
If BHEL had execution, or Suzlon had margins — they’d probably look like Technocraft. This isn’t just another “boring industrial stock.” It’s an Indian manufacturer with global scale, diversified operations, and brutally efficient capital allocation. In short: it’s Reliance in steel shoes.
Key Stat 1: EPS CAGR of 66% over 5 years
Key Stat 2: Cash from Ops in FY25? ₹276 Cr
This company turns steel and cotton into margin machines.
3. Business Model (WTF Do They Even Do?)
Diversified Operations:
- Scaffolding & Formwork (48% of revenue)
– Self-climbing screens, heavy-duty shoring, tubular steel systems — made in-house - Drum Closures
– Global leader in steel drum seals - Cotton Yarn & Fabric
– Integrated spinning and knitting operations - Garments
– Value-added textiles division - Engineering Services
– Drafting, design, structural engineering services for global clients
Plants: India & China
Customers: EPCs, OEMs, Petrochem giants, Fashion brands, Infra firms
Technocraft isn’t betting on one sector — it’s cross-industry hedged and manufacturing integrated.
4. Financials Overview
| Year | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) | EPS (₹) | OPM (%) |
|---|---|---|---|---|---|
| FY21 | 1,295 | 203 | 134 | 53.2 | 16% |
| FY22 | 1,911 | 392 | 274 | 109.3 | 21% |
| FY23 | 1,985 | 403 | 278 | 116.3 | 20% |
| FY24 | 2,182 | 399 | 279 | 115.1 | 18% |
| FY25 | 2,596 | 415 | 263 | 111.6 | 16% |
Highlights:
- Margins softening, but absolute profit still strong
- 5-year sales CAGR: 14%
- 5-year EPS CAGR: 66%
- P/E ~27x on FY25 earnings — premium, but justified by fundamentals
5. Valuation
| Method | Assumption | FV Range |
|---|---|---|
| P/E Method | 22–28x FY26E EPS of ₹130 | ₹2,860 – ₹3,640 |
| EV/EBITDA | 10–12x on FY25 EBITDA ₹415 Cr | ₹3,100 – ₹3,700 |
| SoTP | Weighted on divisions | ₹3,000 – ₹3,800 |
Verdict: Current CMP of ₹3,027 is hugging fair value, but any margin expansion or capex payback pushes this into rerating territory.
6. What’s Cooking – News, Triggers, Drama
- Investor Meet Updates (June 2025):
→ Drum Closure margins expanding
→ Scaffolding volumes rising
→ Textile segment stabilization post global slowdown - Tariff Impacts: Managed well despite global logistics cost pressures
- Capex cycle: Investing in fixed assets again after two years of pause
- China+1: Western infra players seeking Indian alternatives — Technocraft is well-positioned
No scandals, no meltdowns — just consistent, undervalued execution.
7. Balance Sheet
| Item | FY25 |
|---|---|
| Equity Capital | ₹23 Cr |
| Reserves | ₹1,750 Cr |
| Total Liabilities | ₹2,996 Cr |
| Debt | ₹846 Cr |
| Fixed Assets | ₹855 Cr |
| Investments | ₹435 Cr |
| Other Assets | ₹1,673 Cr |
- D/E at ~0.48x — manageable
- Investments and capex balanced
- Solid net worth growth: up from ₹537 Cr in FY14 to ₹1,773 Cr in FY25
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY21 | ₹258 Cr | -₹30 Cr | -₹215 Cr | ₹13 Cr |
| FY22 | ₹108 Cr | -₹132 Cr | ₹20 Cr | -₹4 Cr |
| FY23 | ₹136 Cr | ₹22 Cr | -₹61 Cr | ₹97 Cr |
| FY24 | ₹308 Cr | -₹338 Cr | -₹21 Cr | -₹52 Cr |
| FY25 | ₹276 Cr | -₹185 Cr | -₹45 Cr | ₹47 Cr |
Free cash flow positive in 3 of last 5 years — strong internal funding capacity.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE (%) | 20 | 19 | 16 |
| ROE (%) | 17 | 15 | 14.9 |
| D/E | 0.47 | 0.41 | 0.48 |
| Working Cap Days | 200 | 185 | 172 |
| Cash Conversion | 380 | 312 | 263 |
- Capital efficiency slightly softening
- Inventory Days remain elevated = textile ops drag
- Still a very respectable profile for a 5-segment firm
10. P&L Breakdown – Show Me the Money
| Segment | FY25 Share | Comments |
|---|---|---|
| Scaffolding | 48% | Highest growth & margin segment |
| Drum Closures | 18% | Cash cow, exports heavy |
| Cotton Yarn | 15% | Margin compression visible |
| Garments | 10% | Higher value-add, still scaling |
| Engg Services | 9% | Stable, annuity-style earnings |
Scaffolding is the hero. Textiles the underdog. Engineering services the sleeper cell.
11. Peer Comparison
| Company | P/E | ROE (%) | ROCE (%) | M.Cap (₹ Cr) |
|---|---|---|---|---|
| APL Apollo | 63 | 19.4 | 22.8 | ₹47,649 |
| Ratnamani Metals | 36 | 16.0 | 21.6 | ₹19,828 |
| Jindal Saw | 9.9 | 13.7 | 19.3 | ₹14,600 |
| Technocraft | 27 | 14.9 | 16.2 | ₹6,959 |
Technocraft sits in the mid-tier sweet spot: high quality, reasonable valuation, and massive optionality from its verticals.
12. Miscellaneous – Shareholding, Promoters
| Category | Jun 2025 |
|---|---|
| Promoters | 74.74% |
| FIIs | 0.48% |
| DIIs | 6.61% |
| Public | 18.16% |
| Shareholders | 56,049 |
- Promoter skin is in the game
- FIIs starting to nibble
- DIIs doubled stake in 2 years — early smart money entry?
13. EduInvesting Verdict™
Technocraft is your classic “multibagger, but without the memes.” It delivers earnings, cash flows, and expansion across 5 verticals — all while staying profitable, debt-light, and India+Exports ready.
At current prices, it’s not screaming “value buy,” but with infra demand rising globally, textiles stabilizing, and margins poised for a comeback — this could be a compounder in disguise.
Metadata
– Written by EduInvesting Research Team | 17 July 2025
– Tags: Technocraft Industries, Scaffolding, Drum Closures, Textile Exports, Capital Goods, Infra Play, Smallcap Gems, Export-Oriented Stocks, Deep Dive
