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Techprecision Corporation OTC:TPCS

8th February 2011

Symbol Exchange OTC Current Price 52 Week High/ Low Shares Outstanding (in mn) Market Cap (in $ mn)

TPCS 1.80 0.70 - 1.86 14.28 25.7


Key Developments:

Strong Revenue expected for Q4 2010 and Q1 2011 expected.

Techprecision Corporation announced that it has received a $1.0 million defense contract order

Price Target $4.50 in 2011

Techprecision Corporation announced that it has received a new purchase order to produce an assembly component for a new, advanced nuclear reactor for a major nuclear customer.

Good flow of new orders Strong Buy under $2.20 New acquisitions may speed growth

Techprecision Corporation announced that it has received an order to machine and fabricate production equipment used to produce advanced thin film panels from one of its customers. This first prototype is expected to ship by the end of calendar 2010, with production units anticipated during 2011.

About the Company Founded in February 2006, TechPrecision Corporation is a holding company that's driven to provide businesses with the most well-engineered, cost-effective turnkey solutions to their large-scale component and equipment manufacturing challenges. By assembling experienced metal fabrication companies that specialize in unique, demanding global industries, TechPrecision provides clients with access to knowledge, resources, and technologies that span some of the most demanding manufacturing sectors. TechPrecision subsidiary companies are experts, purposefully selected for their fabrication capabilities; depth of experience in the Cleantech, energy, medical, aerospace, and defense sectors; and long track records for delivering large-scale, critical components that exceed their clients' demands for quality and precision. TechPrecision subsidiaries understand the rigors of these industries. Leveraging cross-market insights and end-to-end, large-scale component fabrication capacity, they provide end-to-end manufacturing solutions to component challenges.

Defense & Aerospace Business •Navy addressable market (Source: Congressional Budget Office Report & 111thCongress House Report 111-230) •Spending for new navy ships (313 ship fleet target) = $25B/year •Shipbuilding and conversion appropriations: $13.1B in 2009 •Shipbuilding and conversion budget request: $13.8B in 2010 •Precision fabricated and machine components for multiple defense contractors •Production subassemblies for nuclear submarines •Prototype components for use on the DDX destroyer •Jet engine test equipment for large jet engine manufacturers •Large-and small-scale fuel cell domes for commercial rocket booster cores •Key supply chain relationships with several large defense contractors

Nuclear Energy Business •Nuclear addressable markets –New Construction: Advanced nuclear plant construction required on a global basis –Outage:Existing nuclear power plants will require hundreds of millions of dollars in replacement equipment –Storage:new requirements for spent fuel and fuel transport •Significant capital expenditure cycle in the nuclear industry over the next few years(Source: Nuclear Energy Institute) –$56Bof debt guarantees from the US Government for new plant construction (up from $18B) –104 existing US plants = $25M/plant per yr. for $2.6Bannually –Total procurement 104 plants = $13.29Bannually –New nuclear plant 2010 = $9 -$14B/plant •One of few ASME N-stamp certified providers of high-precision components to the nuclear industry –Allows for the design and construction of commercial nuclear equipment, and nuclear storage and shipping equipment

Alternative Energy Business •Alternative Energy addressable market (Source: CleanEdge, 2010) •Wind and Solar = $99.6B annually in 2009 •Growing to $231B in 2019 •Manufacture proprietary products for the solar industry •Focused on multicrystallinewafer production •Target expansions in CIGS & Poly Solar Panel markets •Manufacture proprietary products for the Sapphire industry •Focused on HEM Sapphire production •Target expansions LED markets •Expanding programs for high energy wind turbine •Alternative Energy has strong long-term prospects •Rising energy demand/prices •40% increase in electric demand by 2030 •Increasing scarcity of traditional energy resources •Growing adoption of government incentives

Solar and LED Market Trends •Solar Market Trends (Benefits to TPCS) •2011 Forecast, Solar Projects: 19GW (2012 on-par) •China converting from 125x125 Mono to Multi Wafer •$/Watt target <$1.60/watt (driving Multi-wafers/Poly-Panels) •Multi-wafer Price Target: <$2.80/W (Mono: $3.50/Wafer) •Recent News: Trina, SSEC/SAAE, GCL, LDK and Yingliall purchased multi-crystalline furnace (Poly installed base) in the last 6-months •Forecast of 1,500-2,500 tools/year (2011/2012) •LED Market Trends (Benefits to TPCS) •LED market is growing too fast to track •Primary driver is LED Lighting (Lumens & $/Watt) •Primary market leaders: GT Solar, Monolith & Rubicon •Forecast of 1,000-1,500 tools/year (2011/2012)

TechPrecision: Management Team Composed of proven experience, leadership, and innovative thinking, our management team is focused on acquiring and managing advanced, large-scale metal machining and fabrication companies, capable of delivering end-to-end, turnkey solutions to meet our clients' global market needs. James S. Molinaro, CEO

Mr. Molinaro has more than 26 years of global experience in the solar and semiconductor production equipment industries. During the course of his career, Mr. Molinaro has accepted positions of increasing responsibility, overseeing global service systems, worldwide sales leadership, and engineering disciplines for several companies. Prior to joining TechPrecision, Mr. Molinaro was President and CEO of Akrion Systems, an organization that manufactured equipment for semiconductor, defense, commercial, and solar companies. Here, his duties included profit and loss responsibility, oversight of fiscal management, and direction of merger and acquisition activity. Additional responsibilities included venture capital fundraising, global sales and marketing, executive team and employee development, strategic customer management, and strategic corporate vision creation. Mr. Molinaro was able to diversify the company's revenue streams and expand business opportunities by tapping into the lucrative solar energy, military application, and ink jet printer markets, increasing annual sales from approximately $32 million to $83 million over a four-year period. Before being named President and CEO of Akrion, Mr. Molinaro served as Vice President of Sales, Service, and Marketing for Akrion, helping expand the company's global organization. Prior to this, Mr. Molinaro was Vice President of Sales and Marketing for Submicron Systems, having earlier served as the company's Vice President of Engineering. Mr. Molinaro graduated from Pennsylvania State University with a B.S. in Mechanical Engineering with concentration in Robotics.

Richard F. Fitzgerald, Chief Financial Officer

Mr. Fitzgerald joined TechPrecision in March 2009. He has 25 years of progressive financial and commercial experience supporting large established companies as well as development stage enterprises. Prior to TechPrecision, Mr. Fitzgerald was Vice President, and CFO at Nucleonics, Inc., a private biotechnology company, that raised over $65 million in venture capital as an early pioneer within the field of RNAi therapeutics. Nucleonics' intellectual property and drug development programs were sold to Alnylam (ALNY:NASDAQ), in December 2008.

Earlier in his career, Mr. Fitzgerald served as the Director of Corporate Development for Exelon Corporation (formerly PECO Energy) where his experience included business development, mergers, strategic joint ventures and acquisitions, business valuation, and financial and strategic planning. While at PECO/Exelon, Mr. Fitzgerald helped lead efforts to establish and finance joint ventures within the telecommunications field and execute strategic mergers and acquisitions within the energy sector, including the formation of AmerGen, the earliest acquisitions of nuclear power plants as merchant generation assets, the 1999 Exelon merger and the initial eight acquisitions to form InfraSource (NYSE:IFS). Mr. Fitzgerald also co-lead the Finance Integration Team that was responsible for the design and implementation of Exelonâ&#x20AC;&#x2122;s post-merger finance organization.

Earlier in his career with PricewaterhouseCoopers Mr. Fitzgerald provided financial and accounting advisory services to pharmaceutical and medical device companies, software developers, and various venture capital-backed entities in high technology fields. As a member of PricewaterhouseCoopersâ&#x20AC;&#x2122; National High Technology Practice, Mr. Fitzgerald supported several clients with SEC reporting, venture capital financings, initial public offerings as well as mergers and acquisitions.

Mr. Fitzgerald earned a B.S. in Business Administration and Accounting from Bucknell University. He is a member of the American and Pennsylvania Institutes of Public Accounting and he is also a founding member of the Bucknell University Business Advisory Board.

Growth Strategy •Diversify platform and product mix for long-term sustainable growth •Target high-margin projects with more predictable cost structures •Focus on high-growth alternative energy, nuclear, defense, clean techand medical industries •Deploy proactive BD/sales/marketing processes •Expand the direct sales and sales representative force •Expand business through global organic growth

Revenue Periods June September December March

2009 11.658 13.601 8.555 4.27361

Note: Units in Millions of U.S. Dollars

2010 3.31891 15.117 5.25559 4.65514

2011 6.1535 8.38132

Earnings Per Share Periods June September December March

2009 0.0595 0.09178 0.04144 0.04462

2010 -0.00897 0.06207 0.00954 0.02958

2011 0.03947 0.0416

Note: Units in U.S. Dollars Sales and Earnings Figures in U.S. Dollars (USD) Valuation Ratios

P/E Ratio (TTM) P/E High - Last 5 Yrs. P/E Low - Last 5 Yrs. Beta Price to Sales (TTM) Price to Book (MRQ) Price to Tangible Book (MRQ) Price to Cash Flow (TTM) Price to Free Cash Flow (TTM) % Owned Institutions

Company 14.56 ---1.02 2.16 1.81 8.54 26.49 --

Industry 11.64 79.02 14.41 1.19 0.77 1.81 2.97 5.21 28.84 --

Sector 14.49 68.92 14.31 1.15 1.31 1.32 1.60 9.78 20.38 --

S&P 500 18.16 84.02 12.39 1.31 2.24 2.72 4.08 7.98 35.83 --

Company ---0.00

Industry 1.19 1.53 4.70 11.06

Sector 1.27 1.20 8.55 15.84

S&P 500 1.56 2.29 -5.61 34.17


Dividend Yield Dividend Yield - 5 Year Avg. Dividend 5 Year Growth Rate Payout Ratio(TTM)

Growth Rates Company Sales (MRQ) vs Qtr. 1 Yr. Ago -44.56 Sales (TTM) vs TTM 1 Yr. Ago -21.81 Sales - 5 Yr. Growth Rate -EPS (MRQ) vs Qtr. 1 Yr. Ago -32.98 EPS (TTM) vs TTM 1 Yr. Ago -13.66 EPS - 5 Yr. Growth Rate -Capital Spending - 5 Yr. Growth Rate --

Industry 35.52 1.38 3.10 145.64 -1.61 1.95

Sector 17.85 6.95 6.59 112.71 -9.54 14.97

S&P 500 10.55 11.52 7.88 63.30 -4.87 4.42

Company 6.52 6.61 40.34 46.24 9.55

Industry 2.76 3.46 21.49 33.70 0.20

Sector 1.29 1.61 52.47 71.73 0.05

S&P 500 0.54 0.82 106.37 151.04 16.10

Company 31.88 -16.96 -15.31 -13.86 -10.32 -25.52 --

Industry -52.07 31.42 -17.14 3.55 13.13 3.55 14.05 2.36 8.86 11.62 37.59

Sector 8.00 23.45 -12.89 5.74 8.75 5.93 8.80 4.33 5.87 18.07 109.35

S&P 500 30.74 29.28 -18.15 -14.93 14.79 14.53 10.83 10.77 19.16 24.63

Financial Strength

Quick Ratio (MRQ) Current Ratio (MRQ) LT Debt to Equity (MRQ) Total Debt to Equity (MRQ) Interest Coverage (TTM) Profitability Ratios

Gross Margin (TTM) Gross Margin - 5 Yr. Avg. EBITD Margin (TTM) EBITD - 5 Yr. Avg Operating Margin (TTM) Operating Margin - 5 Yr. Avg. Pre-Tax Margin (TTM) Pre-Tax Margin - 5 Yr. Avg. Net Profit Margin (TTM) Net Profit Margin - 5 Yr. Avg. Effective Tax Rate (TTM) Effecitve Tax Rate - 5 Yr. Avg.


Revenue/Employee (TTM) Net Income/Employee (TTM) Receivable Turnover (TTM) Inventory Turnover (TTM) Asset Turnover (TTM)

Company 188,043 19,414 8.45 62.14 1.15

Industry 70,301,319 2,532,057 1.37 1.04 0.22

Sector 36,621,552 2,276,611 2.66 5.38 0.36

S&P 500 352,273 47,539 8.41 5.50 0.45

Company 11.91 -14.08 -24.64 --

Industry 1.55 6.77 2.06 9.74 2.94 11.98

Sector 1.96 4.10 2.85 7.02 5.26 10.26

S&P 500 5.04 4.76 6.49 6.17 13.79 6.99

Management Effectiveness

Return on Assets (TTM) Return on Assets - 5 Yr. Avg. Return on Investment (TTM) Return on Investment - 5 Yr. Avg. Return on Equity (TTM) Return on Equity - 5 Yr. Avg.

Shayne Heffernan of Ebeling Heffernan prepared this report, Mr Heffernan holds a PhD in Economics serves as CEO of Heffernan Holdings and overseeâ&#x20AC;&#x2122;s trading at Heffernan Capital Management He is also Co Founder of Ebeling Heffernan the fastest growing Financial Services company in ASEAN.

Corporate Services Ebeling Heffernan Funds Management Heffernan Capital Management

Bangkok Suite 53 Athenee Tower 63 Wireless Road, Lumpini, Pathumwan, Bangkok 10330 THAILAND Tel: +66 2 126 8000 Fax: +66 2 126 8080 New York 347 5th Avenue, Suite 1402-508 Ny, NY 10016

Tel: +1 646-403-9881 Fax: +1 646-403-8014 Singapore 3 Raffles Place #07-01 Bharat Building Singapore 048617 Tel: +65 6329 6408Fax: +65 6329 9699

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Strong Buy on Techprecision Corp OTC:TPCS  

Strong Buy on Techprecision Corp OTC:TPCS

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