Shares of multibagger Triveni Turbine Ltd rose 12% on Tuesday after the firm reported a stellar set of Q2 earnings. Triveni Turbine stock gained 11.80% to Rs 699.95 in the current session against the previous close of Rs 626.05 on BSE. Earlier, the multibagger stock opened higher at Rs 671.95 on BSE. The power sector stock has gained 56% this year and risen 61.36% in a year. In three years, the stock has risen 209% and gained 549.50% in five years.
Total 6.61 lakh shares of the firm changed hands amounting to a turnover of Rs 44.69 crore on Tuesday. Market cap of the firm rose to Rs 20,820 crore. The stock hit a 52-week low of Rs 351.20 on February 5 2024 and a 52-week high of Rs 842.45 on August 14, 2023.
In terms of technicals, the relative strength index (RSI) of the stock stands at 35, signaling it's trading neither in the overbought and nor in the oversold zone. Triveni Turbine shares have a beta of 0.8, indicating very low volatility in a year. Triveni Turbine shares are trading higher than the 5 day, 150 day and 200 day but lower than the 10 day, 20 day, 30 day, 50 day, 100 day, moving averages.
In the September quarter of this fiscal, Triveni Turbine posted a 42% rise in net profit to Rs 91 crore against Rs 64 crore profit during the quarter ended September 2023.
The company reported highest ever quarterly revenue and EBITDA along with a record closing order book, providing good visibility for the near-term.
Sales rose 29.2% to Rs 501.1 crore in Q2 against Rs 387.8 crore during the quarter ended September 2023. The company clocked highest ever quarterly revenue, EBITDA and order booking along with a record closing order book providing good visibility for FY25.
EBITDA climbed 47.4% to Rs 131 crore in Q2 against Rs 88.9 crore in the corresponding quarter of the previous fiscal.
Dhruv M Sawhney, chairman and managing director of Triveni Turbine said, "We have reported another strong set of results across all key metrics of revenues, profitability and order booking."
"In Q2 FY25, order booking grew 25% y-o-y to Rs 5.72 billion driven by export order booking which increased 50% y-o-y to Rs 3.04 billion. Product order booking increased by 30% y-o-y to reach Rs 3.98 billion. Key drivers of growth in product order booking were finalization of orders by industrial customers for biomass-based process cogeneration along with API turbines," added Sawhney.
Brokerage Bonanza Portfolio has a price target of Rs 1,057 on the Triveni Turbine stock in its Diwali picks 2024.
"With the growing demand from sectors like steel, cement and renewable energy, TTL has expanded its turbine capacity upto 120MW. The management has added 120 mw turbines to its offering as a result of an increase in visibility in foreign orders. We anticipate that by making this change, the business will be able to meet the rising demand from industries including renewable energy, steel, and cement. A decrease in input prices caused the gross margin to increase by 38bps YoY to 48.2% in Q1FY25, while the EBITDA margin increased by 180bps YoY to 20.6%. We anticipate increased execution in the upcoming years given the prospects in the global market," said the brokerage.
About the company
Triveni Turbine Limited is an industrial steam turbine manufacturer. The company is primarily engaged in the business of manufacturing and supplying power generating equipment and solutions and has manufacturing facilities in Bengaluru, Karnataka. Approximately 6,000 steam turbines supplied by the company are installed across 20 industries in over 75 countries, including Europe, Africa, Central and Latin America, Southeast Asian and South Asian Association for Regional Cooperation countries.