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Triveni Turbine is a small-cap stock on exchanges with a dividend yield of 1.1%. In a little over 30 months, the stock has emerged as a multi-bagger and has given nearly 368% returns to its investors. The stock has risen by nearly 185 rupees from the first wave of nationwide lockdown due to the pandemic. Going forward, Triveni is seen as a value pick. Stock brokerage Anand Rathi has set a ‘buy’ target on Triveni Turbine stock on expectations of strong growth in financial performance.
On Friday, last week, Triveni shares closed at ₹234.80 apiece up by 1.19%. The company’s market cap is around ₹7,591.21 crore on BSE.
The stock is currently a little over 11 rupees away from its 52-week high of ₹248.20 apiece.
In the second quarter of FY23, the shares climbed over 50.5% on Dalal Street. While in a year, Triveni shares have witnessed a jump of over 46.5%.
The shares were around ₹50.2 apiece on March 24, 2020, just a day before the first lockdown came into effect on March 25, 2020. While the stock had even erased ₹49 levels on March 23, 2020. During the first wave of Coronavirus, markets global were vulnerable including India as well. Many domestic stocks corrected sharply during the first wave including Triveni, however, the stock did manage to pick up momentum later on.
That said, in over 2 and half years since the first lockdown, Triveni shares have skyrocketed by a whopping 367.73% to date. The stock has now multiplied investors’ wealth by nearly 5-folds in over 30 months.
In its report dated September 30, 2022, Anand Rathi said, the Company has been among the leading manufacturers of industrial steam turbines in >5 to 30 MW range globally for many years and following the termination of the Joint Venture (JV) agreement with respect to its JV Company Triveni Energy Solutions Limited (TESL) (Formerly known as GE Triveni Limited) is now independently approaching the 30.1-100 MW segment globally, thus catering to the entire range from 0.1-100 MW on a worldwide basis. TTL has industry-leading domestic market share of greater than ~50%.
The stock brokerage highlighted that Triveni believes that the outlook for product order booking in the near term is strong, on the back of its healthy enquiry pipeline. The management guided sustained ~35% Revenue Growth for the next few years and aims to maintain the PBT above 20% on the back of execution of high-margin Export business and cooling off commodity prices.
“Given the strong carry forward order book proposition and robust Enquiry, increase in addressable market, Industry-leading market share and capacity increase TTL is all set to enter next leg of growth. We initiate our coverage on Triveni Turbine Ltd with a BUY rating and a target price of ₹285 per share,” Anand Rathi’s note said.
Triveni manufactures steam turbines at its world-class manufacturing facilities in Bengaluru, India, and assists its customers with their aftermarket requirements through its global servicing offices. With installations of 5000+ steam turbines across over 20 industries, Triveni Turbines is present in over 75 countries around the world.
The company offers steam turbine solutions for Industrial Captive and Renewable Power. The Company provides renewable power solutions specifically for Biomass, Independent Power Producers, Process Co-generation, Waste-to-Energy, Waste Heat Recovery, and District Heating. Nearly 75% of Triveni Turbine’s business (FY22 Order booking) currently comes from non-fossil or renewable energy.
In Q1FY23, Triveni posted a net profit of ₹38.33 crore versus ₹27.75 crore in Q1FY22. Revenue from operations stood at ₹259.04 crore against ₹184.06 crore in Q1 of FY22.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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