Rs 139 to Rs 737: This power stock turned into a multibagger in three years; fell 7% today 

Shares of multibagger Triveni Turbine Ltd have delivered 430% percent returns to investors in the last three years. The power equipment stock, which closed at Rs 139 on September 17, 2021 ended at Rs 736.75 in the current session, clocking 430% returns during the period. In comparison, Sensex has risen 41% in three years. Triveni Turbine stock closed 6.49% lower at Rs 736.75 in the current session. Earlier, the stock opened higher at Rs 783.70 against the previous close of Rs 787.85 on BSE. The power sector stock has gained 75% this year and risen 69% in a year.  

Total 0.89 lakh shares of the firm changed hands amounting to a turnover of Rs 6.72 crore on Tuesday. Market cap of the firm fell to Rs 23,419 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 66.8, 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 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 1.07 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 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.