Multibagger stock: Shares of multibagger Triveni Turbine Ltd have lost steam in the short term. Triveni Turbine shares have risen merely 0.84% in three months with stock reporting negative returns of 2.64% in a month, 0.31% in two weeks, and 2.55% this year. In the long term, the power sector stock rose 80.14% in a year and 189% in two years. It zoomed 671.34% in five years.
In the current session, Triveni Turbine stock fell 4% to Rs 733.45 in the current session against the previous close of Rs 762.45 on BSE. Total 0.12 lakh shares of the firm changed hands amounting to a turnover of Rs 88.04 crore on Wednesday. Market cap of the firm fell to Rs 23,314 crore. The stock hit a 52-week low of Rs 351.20 on February 5, 2024 and a 52-week high of Rs 885 on November 26, 2024.
In terms of technicals, the relative strength index (RSI) of the stock stands at 66.8, 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 50 day, 100 day, 150 day and 200 day but lower than the 5 day, 10 day, 20 day, 30 day moving averages.
Eight promoters held 55.84 per cent stake in the firm and 1.27 lakh public shareholders owned 44.16 per cent or 14.03 crore shares for the quarter ended September 2024. Of these, 1,25,11,369 resident individuals held crore shares or 3.65% stake with capital up to Rs 2 lakh.
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.
Total income climbed to Rs 520.7 crore in Q2 from Rs 402.3 crore a year ago.
Ahead of the quarterly earnings for the December 2024 period, brokerage Motilal Oswal is bullish on the stock with a price target of Rs 830.
"Despite weakness in domestic markets, Triveni Turbine posted healthy growth in revenue, profitability and order inflows in FY24. We expect Triveni Turbine to continue to benefit from international order inflows, particularly from the ongoing global shift toward renewables, while domestic inflows will ramp up in the next few quarters from key end-user industries such as steel, cement, chemicals, sugar, distilleries, paper and pulp. We slightly raise our margin estimates and roll forward our target price. We maintain BUY with a revised target price of Rs 830, based on 48x Sep’26E EPS," said Motilal Oswal.
"We expect Triveni Turbine to clock a CAGR of 29%/32%/32% in revenue/EBITDA/PAT over FY24-27E. Backed by a comfortable negative working capital cycle, strong margins and low capex requirements, we expect a CAGR of 39%/42% in OCF/FCF over FY24-27E," it added.
Geojit has a price target of Rs 835 on the power sector stock.
"We expect the increasing share of the export order book, which has a superior margin profile would aid profitability in the coming quarters. The foray into the US market provides untapped opportunity on the refurbishment side which would drive the aftermarket revenue growth. We expect revenue/PAT to grow at a CAGR of 28%/27% respectively over FY24-FY27E. We therefore revise our rating to BUY and value the stock at a P/E of 50x on FY27E EPS with a revised target price of Rs 835," 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