1. At a Glance
Thejo Engineering Ltd is what happens when rubber meets mining but refuses to stop there. Incorporated in 1986, this Chennai-based outfit went from making belt cleaners to being the engineering agony-aunt for bulk material handling, mineral processing, and corrosion protection. With plants in India, subsidiaries in Australia, Brazil, Chile, and Saudi Arabia, plus distributor friends in Africa and the Middle East, Thejo’s sales pitch is simple: “Got rocks? We’ve got rubber.”
2. Introduction
Imagine running a mining empire where every ton of coal, ore, or cement is crying out like your neighborhood gym bro: “Spot me, bro!” That’s where Thejo comes in. They make sure belts don’t slip, spillage doesn’t embarrass you, and steel plants don’t crumble before the CFO finishes his balance sheet presentation.
This is not your average rubber company. This is the rubber company that actually put its money where the conveyor belt is. They didn’t just stop at India; they went global, with clients across six continents and patents that scream, “We actually innovate, unlike your cousin’s startup.”
In FY25, they clocked sales of ₹558 Cr and PAT of ~₹50 Cr, with exports forming a juicy 41% of revenue. Service contracts? 70% of revenue—basically, these guys charge you for productsandfor fixing them later. Brilliant business model—like selling gym memberships and charging extra for personal training.
But the fun doesn’t stop there. Their P/E is a Bollywood-style 41.9, way above the industry’s 37.2, which means investors are basically saying, “Sure, your rubber rollers are sexy enough to deserve a premium.”
3. Business Model (WTF Do They Even Do?)
Thejo is in the “dirty work outsourcing” business. They don’t run mines, but they keep the mining machinery running so miners can keep digging and owners can keep sipping champagne.
- Products: Belt cleaners, spillage control systems, flow enhancement gadgets, abrasion-resistant liners, impact protection kits, and screening systems. Basically, things that help you move rocks around without looking like an amateur.
- Services: On-site maintenance, conveyor belt splicing, monitoring, and technical services. Think “Doctor on Call” but for industrial belts.
- Industries: Mining, cement, steel, fertilizers, power plants, ports. If it’s heavy, dusty, and noisy, Thejo is lurking nearby with a solution.
- Revenue Split FY23: 70% from services (because belts never behave), 23% manufacturing, 7% others.
And here’s
the kicker—they have 32 patents filed, with 19 granted. Try filing one patent at your workplace and HR will ghost you for a week.
4. Financials Overview
Quarterly Snapshot (Q1 FY26 vs Q1 FY25 & Q4 FY25):
| Metric | Latest Qtr (Jun’25) | YoY Qtr (Jun’24) | Prev Qtr (Mar’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 135.6 | 130.5 | 153.2 | 3.9% | -11.5% |
| EBITDA (₹ Cr) | 16.4 | 18.4 | 28.2 | -10.9% | -42.0% |
| PAT (₹ Cr) | 9.75 | 9.60 | 16.6 | 1.6% | -41.2% |
| EPS (₹) | 8.68 | 8.85 | 14.03 | -1.9% | -38.1% |
Commentary:YoY looks steady, QoQ looks like someone tripped over the conveyor belt. EPS annualized is ~₹35, so at CMP ₹1,919 the P/E recalculated is ~55. That’s not a valuation; that’s investor FOMO wearing safety gear.
5. Valuation (Fair Value Range)
Method 1: P/E Multiple
- EPS (TTM) = ₹45.8
- Assigning industry band P/E (30–40) → FV = ₹1,374 – ₹1,832
Method 2: EV/EBITDA
- EV = ₹2,034 Cr
- EBITDA (TTM) = ₹86 Cr
- EV/EBITDA = 23.6 (way above comfort)
- Assuming fair band 15–18 → FV = ₹1,300 – ₹1,560
Method 3: DCF (Simplified)
- Free Cash Flow FY25 = ~₹24 Cr avg (past 3 yrs)
- Growth assumed 10%, discount 12% → FV = ~₹1,600 – ₹1,900
👉Fair Value Range (Educational Purpose Only):₹1,350 – ₹1,850
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 Order Book: ₹222 Cr. That’s almost half their annual sales—bookings more reliable than Zomato during surge pricing.
- Australia Repeat Order: ₹2 Cr
