Multibagger power stock rose 11% today, up 614% in five years; here's what brokerages say 

Shares of multibagger Triveni Turbine Ltd rose 12% intra day on Tuesday amid a rally in the broader market. The power equipment stock closed 10.84% higher at Rs 728.60. Earlier, the stock opened lower at Rs 655.05 against the previous close of Rs 657.35 on BSE. The power sector stock has gained 323% in three years and risen 187% in two years. The multibagger stock has zoomed 614% in five years. 

Total 0.87 lakh shares of the firm changed hands amounting to a turnover of Rs 6.23 crore on Tuesday. Market cap of the firm rose to Rs 23,160 crore. The stock hit a 52-week low of Rs 311.85 on October 26, 2023 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 34.6, signaling it's trading neither in the overbought and nor in the oversold zone. Triveni Turbine shares have a beta of 0.6, indicating very low volatility in a year. Triveni Turbine shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages. 

Eight promoters held 55.84 per cent stake in the firm and 1.07 lakh public shareholders owned 44.16 per cent or 14.03 crore shares for the quarter ended June 2024. Of these, 1,03,911 resident individuals held 1.16 crore shares or 3.65% stake with capital up to Rs 2 lakh.  

In the June quarter of this fiscal, Triveni Turbine posted a 32% rise in net profit to Rs 80.41 crore against Rs 60.96 crore profit during the quarter ended June 2023. Sales rose to Rs 482.67 crore in Q1 against Rs 389.77 crore during the quarter ended June 2023.      

The company clocked highest ever quarterly revenue, EBITDA and order booking along with a record closing order book providing good visibility for FY25.

Brokerage Geojit Financial has assigned a price target of Rs 803 on the stock. 

"We remain positive on the stock due to increasing mix of high margin international orders and aftermarket sales. Due to the recent uptick in price, we revise our rating to Accumulate and value the stock at a P/E of 54x on FY26E EPS with a price target of Rs 803. The increasing share of the export order book would aid profitability in the coming quarters. We expect the product business to continue to witness healthy traction, while an increasing share of the aftermarket mix will drive revenue growth," said Geojit.  

Brokerage Motilal Oswal is bullish on the stock with a price target of Rs 830. 

"Despite weakness in domestic markets, TRIV posted healthy growth in revenue, profitability and order inflows in FY24. We expect TRIV 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 TRIV’s 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. 

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.