Shares of multibagger Triveni Turbine Ltd have surged 27% in a week against a 1.55% rise in Sensex during the same period. The power equipment stock was among the top gainers on BSE today, rising 15% on BSE. The multibagger stock closed at Rs 615 in the current session against the previous close of Rs 535.25 on BSE. The power sector stock has gained 27% in a year, risen 83.92% in two years and climbed 253% in three years.
Total 6.09 lakh shares of Triveni Turbine changed hands amounting to a turnover of Rs 35.86 crore on Friday. Market cap of the firm climbed to Rs 19,562 crore.
The stock hit a 52-week low of Rs 444.40 on March 14,2024 and a record high of Rs 885 on November 26, 2024. The stock has lost 31% from record high.
Motilal Oswal has a price target of Rs 780 on the Triveni Turbine stock.
"Management is optimistic about domestic order inflow pipeline materializing in 4QFY25, with healthy inquiries from distilleries, MSW, cement, steel, process co-generation, et al. Triveni is foraying into new products, applications and geographies in order to diversify its revenue stream and growth prospects, said Motilal.
The brokerage cut its FY26/FY27 estimates by 2%/8% to factor in lower order inflows and revenues. It maintained a BUY call with a target price of Rs 780, based on 42x Mar’27E earnings.
Geojit Financial has a price target of Rs 656 on the stock.
"A strong mix of international orders (65% of the order book vs 52% earlier) is expected to increase the earnings visibility in the coming quarters. On the domestic front, there is a slowdown in order inflow, in 9MFY25 domestic order book declined by 22% YoY. Due to slow pace in domestic execution, we reduce our revenue estimate for FY25E/26E by 7.5/7.3% respectively," said the brokerage.
Geojit revised its rating to Accumulate and value the stock at a P/E of 40x on FY27E EPS with a revised target price of Rs 656.
In terms of technicals, the relative strength index (RSI) of the stock stands at 43.7, signaling it's trading neither in the overbought and nor in the oversold zone. Triveni Turbine shares have a beta of 0.9, indicating very low volatility in a year. Triveni Turbine shares are trading higher than the 5 day, 10 day, 20 day, 30 day and lower than the 50 day, 100 day, 150 day and 200 day moving averages.
Eight promoters held 55.84 per cent stake in Triveni Turbine and 1.49 lakh public shareholders owned 44.16 per cent or 14.03 crore shares for the quarter ended December 2024. Of these, 1,45,081 resident individuals held 1.34 crore shares or 4.24% stake with capital up to Rs 2 lakh.
In the December quarter of the current fiscal, Triveni Turbine posted a 35.5% rise in net profit to Rs 92.4 crore against Rs 68.2 crore profit during the quarter ended December 2023. Sales rose to Rs 503.4 crore in Q3 against Rs 431.7 crore during the quarter ended December 2023.
The company reported its all-time high quarterly revenue and EBITDA along with a record closing order book. EBITDA rose 30.4% to Rs 109.3 crore in the third quarter of this fiscal over Rs 83.87 crore YoY.
Mirae Asset Sharekhan has a price target of Rs 750 on the Triveni Turbine stock.
"Order book surged 15% y-o-y to Rs. 1,819 crore, with export order book rising 55% y-o-y to Rs. 1,184 crore. Domestic order book reported a decline of 22% to Rs. 635 crore. Export order inflow stayed robust on the exports front, with strong prospects in the US and Southeast Asia. ? Global focus on renewable energy, waste-to-heat recovery, robust order book, and margin tailwinds bode well for the company. We model a revenue/PAT CAGR of 24%/29% over FY2024-FY2027E. We reiterate a Buy with a price target of Rs 750," said the brokerage.
Centrum Broking has assigned a price target of Rs 760 to the stock.
"Maintain Buy with a revised target price of Rs760 We expect 23%/26% revenue/EPS CAGR over FY24-27E. We remain optimistic considering strong growth outlook of exports and after-market services, superior financial profile (20%+ OPM, NWC at negative 10% of sales, 30%+ return ratios, capex light business model with high FCF) and market leadership (second largest globally)," said the brokerage.
The brokerage in its report said:
A. It expects to maintain robust business performance in the medium-term led by a substantial backlog of orders in Renewable, API and IPG (Industrial Power Generation) turbines, along with successful market expansions.
B. The Aftermarket business also shows promising growth prospects, bolstered by an expanding range of offerings, including spare parts, services and refurbishments, designed to cater to a broader customer base of rotating equipment encompassing-steam turbines, gas turbines, utility turbines, and geothermal turbines.
C. Globally, demand is increasing for renewable energy, energy efficiency, waste-to-energy (WtE), and decentralized power solutions. By leveraging these opportunities domestically and globally, Triveni will maintain growth and profitability in the coming years.
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.