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Thejo Engineering Limited (THEJO) Fair Value & Analysis

Industrials · IN · Market cap ₹20.8B

TE Thejo Engineering Limited THEJO · NSE
Price₹2,118
Fair Value₹742.28
Upside-65.0%
Quality53/100
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Expensive Growth
Thin margins · 7.8% net margin
Low debt · generates free cash flow
0.26% dividend yield
Mixed vs. peers (7/14)
Moderate moat 49/100
Evidence: Medium Range ₹414.86 – ₹1,192 Share as image

Fair value as of: Aug 13, 2026

From 25 valuation models · updated 4 days ago

Share price +12.6% over the past month.

A solid business, but screening 65% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (₹1,192). The favourable scenario is already priced in.
  • The model range is unusually wide (₹414.86 to ₹1,192). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (53/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

₹3,570 ₹610.10 Fair Value ₹742.28 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹610.10 – ₹3,570 · fair‑value band ₹414.86 – ₹1,192 · the ₹2,118 price screens above the ₹742.28 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Thejo Engineering Limited (THEJO) currently trades at ₹2,118, while our model-based Fair Value estimate is ₹742.28, implying the stock looks roughly 65.0% overvalued today. The Quality Score stands at 53/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Thejo Engineering Limited generated revenue of ₹6.3B at a net margin of 7.8%. Revenue grew 18.3% year over year. It earns a return on equity of 14.0%. The balance sheet holds a net cash position of ₹257M. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹414.86 (bear case) to ₹1,192 (bull case); at ₹2,118, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 15% below its 52-week high and 47% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -67% fair-value upside, at -65%, THEJO screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF ₹133.91 ₹195.55 ₹304.06 80
Residual Income ₹317.52 ₹412.66 ₹1,176 76
ROIC Compounder ₹537.38 ₹726.34 ₹986.95 72
All 25 models by family
DCF Models
FCF DCF ₹135.23 ₹204.78 ₹332.22 38
Owner Earnings ₹432.34 ₹776.77 ₹1,408 31
5Y Revenue Exit ₹461.91 ₹899.26 ₹1,528 39
5Y EBITDA Exit ₹548.91 ₹1,086 ₹1,795 41
5Y P/E Exit ₹545.93 ₹1,079 ₹1,721 38
10Y Revenue Exit ₹335.16 ₹718.36 ₹1,371 36
10Y EBITDA Exit ₹413.39 ₹857.97 ₹1,603 37
10Y P/E Exit ₹411.38 ₹853.18 ₹1,539 35
Earnings-Based
Graham-Dodd ₹308.84 ₹1,625 ₹2,250 54
Lynch FV ₹446.68 ₹638.12 ₹829.55 50
PEG = 1.0 ₹446.68 ₹638.12 ₹829.55 46
EPV ₹474.93 ₹544.08 ₹604.58 59
Dividend Discount
Gordon GGM ₹45.91 ₹95.46 ₹151.44 70
DDM Multi-Stage ₹45.91 ₹80.49 ₹100.19 61
Multiples
P/E Multiple ₹715.33 ₹953.77 ₹1,192 63
P/S Multiple ₹579.07 ₹772.10 ₹965.12 58
P/B Multiple ₹579.07 ₹772.10 ₹965.12 55
EV/EBIT ₹825.58 ₹1,081 ₹1,336 53
EV/EBITDA ₹779.99 ₹1,020 ₹1,260 54
EV/Revenue ₹606.43 ₹840.59 ₹1,075 43
Asset-Based
NCAV (Graham) ₹163.39 ₹218.94 ₹326.78 50
Growth DCF
Growth DCF ₹133.91 ₹195.55 ₹304.06 80
Economic Profit
Residual Income ₹317.52 ₹412.66 ₹1,176 76
ROIC Compounder ₹537.38 ₹726.34 ₹986.95 72
Growth Earnings
Growth-Adj P/E ₹663.71 ₹948.16 ₹1,233 68

Widest divergence: Growth Earnings (₹948.16) versus Dividend Discount (₹80.49). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) ₹6.3B
Revenue growth (YoY) +18.3%
Net margin 7.8%
Return on equity 14.0%
Free cash flow ₹60.0M FY2026
P/E ratio 46.6
More key figures
Operating margin 10.9%
EPS (TTM) ₹45.48
Dividend yield 0.3%
EPS growth (YoY) +4.0%
Net cash ₹257M FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 53/100

Of which business quality 55 · Market factors (momentum, volatility) 64

Profitability 67
Margins and returns on capital today
Quality Growth 34
Are margins and returns improving?
Cashflow 19
Earnings quality: real cash, not paper profit
Fin. Strength 84
Balance sheet, leverage, solvency risk
Investment 36
Disciplined investing over empire-building
Low Volatility 77
Calm price path (market factor)
Momentum 61
Price trend over the last 3–12 months (market factor)
52W Momentum 55
Distance to the 52-week high (market factor)
Net Issuance 81
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Thejo Engineering Limited designs, develops, manufactures, and supplies rubber and polyurethane based engineering products for bulk material handling systems, mineral processing, and corrosion protection applications in India and internationally. It operates through three segments: Manufacturing Units, Service Units, and Others.

Full company description

Thejo Engineering Limited designs, develops, manufactures, and supplies rubber and polyurethane based engineering products for bulk material handling systems, mineral processing, and corrosion protection applications in India and internationally. It operates through three segments: Manufacturing Units, Service Units, and Others. The company provides conveyor care products, including belt conveyor splicing and repair solutions, pulley lagging sheets, vulcanizing equipment, and belt coiler and de coiler products, as well as school tool kits, such as hand and power tools, and personal protective equipment; and transfer point solutions comprising belt cleaners and trackers, impact cushion pads, skirt sealing systems, and engineered chutes. It also offers high pressure fogging systems for dust suppression; flow promotion products; and abrasion and wear protection products, including mill lining, bulk flow chutes, wear resistant panels and sheeting, and twister cyclone and pump spares, as well as rubber hoses, lined pipes, and fittings; and other services. In addition, the company provides corrosion protection products comprising rubber sheeting, hoses, lined pipes, and fittings; and primers adhesive and repair putty products, expansion joints and bellows, fabrication and linings, and PTFE linings and bellows. Further, it offers scalping and sizing, de-watering, flip flow, and trommel screening solutions, as well as grator spares; rubber, engineered plastic, and metallic spares; and specialty products. Additionally, the company provides conveyor belt, project execution, transfer point, abrasion and wear, filtration, screening, and corrosion protection services. It serves steel, mining, mineral processing, aggregates, sand and gravel, power, metal, chemical and fertilizer, cement, paper and pulp, and food and grain industries, as well as ports and terminals. The company was founded in 1974 and is based in Chennai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Thejo Engineering Limited reported revenue of ₹6.3B in FY2026 versus ₹4.2B in FY2022, a compound +10.5%/yr. Reported net income was ₹493M in FY2026, compounding +7.0%/yr from FY2022.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹6.3B
Latest YoY
+14.4%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.0%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+14.1%
Avg. growth/yr (18Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.7%
Revenue +10.5%/yr
FY22 ₹4.2B
FY23 ₹4.7B
FY24 ₹5.6B
FY25 ₹5.5B
FY26 ₹6.3B
Net income +7.0%/yr
FY22 ₹376M
FY23 ₹324M
FY24 ₹556M
FY25 ₹499M
FY26 ₹493M
Character of growth · EPS growth decomposed (2016-2026) +39.0 % p.a.
Revenue per share +13.8 pp

of which total revenue +14.5 pp · buybacks/dilution −0.7 pp

EBIT margin +12.1 pp
Tax rate +4.2 pp
Residual (interest, one-offs) +8.8 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

THEJO screens 65% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Thejo Engineering Limited Fair Value". https://www.fairvalue-calculator.com/stock/THEJO

Peer Group

Specialty Industrial Machinery · 805 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 53 · Below median
Fair Value upside −65% · Bottom 25%
Return on equity (TTM) 14% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 8% · Above median
Operating margin (TTM) 11% · Above median
Revenue growth 18% · Above median
Dividend yield (TTM) 0.3% · Bottom 25%
Debt / equity 0.00× · Lower than 75% of peers

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 46.6× · Pricier than median
P/B 5.87× · Pricier than 75% of peers
P/S (TTM) 3.29× · Pricier than median
P/FCF 3.6× · Cheaper than median
EV/EBITDA 25.2× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 92 · sector 22
PAST 56 · sector 28
HEALTH 100 · sector 95
DIVIDEND 5 · sector 27

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
GE Vernova Inc 1GEV €899.80 €186.93 -79%
1SIE 1SIE €281.75 €91.93 -67%
SMNS SMNS C$31.76 C$22.75 -28%
Atlas Copco AB ATCOA kr 210.00 kr 112.59 -46%
Sandvik AB SAND kr 358.60 kr 193.01 -46%
Zhejiang Sanhua Intelligent Controls Co 002050 ¥39.17 ¥22.68 -42%
ABB India Limited ABB ₹7,645 ₹1,322 -83%
Cummins India Limited CUMMINSIND ₹5,315 ₹1,355 -75%
Bharat Heavy Electricals Limited BHEL ₹421.70 ₹96.51 -77%
Siemens Limited SIEMENS ₹4,019 ₹746.83 -81%

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Frequently asked questions

Is Thejo Engineering Limited (THEJO) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹742.28 versus a price of ₹2,118, about −65% (overvalued).
What is the fair value of THEJO?
Our model-based fair value for Thejo Engineering Limited is ₹742.28 (as of Aug 13, 2026), built from audited fundamentals. The current price is ₹2,118.
What is the quality score of THEJO?
Thejo Engineering Limited has a Quality Score of 53/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Thejo Engineering Limited (THEJO)?
Thejo Engineering Limited reported trailing-twelve-month revenue of about ₹6.3B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of THEJO?
The net profit margin of Thejo Engineering Limited is about 7.8%, meaning it keeps roughly 7.8% of revenue as net income. Based on the latest reported figures.
Does Thejo Engineering Limited pay a dividend?
Thejo Engineering Limited currently shows a dividend yield of about 0.26% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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