Moneycontrol
Feb 14, 2017 06:05 PM IST | Source: Moneycontrol.com

Buy Triveni Turbine; target of Rs 148: HDFC Securities

HDFC Securities is bullish on Triveni Turbine has recommended buy rating on the stock with a target price of Rs 148 in its research report dated February 11, 2017.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More


HDFC Securities' research report on Triveni Turbine


Triveni Turbine’s (TRIV) 3QFY17 revenue (flat YoY) was below our estimates. However, better-than-expected EBITDA margins (26.3%, +550bps YoY) led to an in line PAT (Rs 351mn, +19% YoY). The superior EBITDA margin was led by the execution of high margin export orders and strong growth in after-market sales (+27% YoY).


Outlook


We continue to remain constructive on TRIV, given potentially large opportunities and TRIV’s competitiveness (cost efficiency and GE backing) to capture market share. Commissioning of 3 turbines in the 30 MW plus segment in international markets would improve TRIV’s references for future orders. New product offering (API 612 turbines, service income) further enhances visibility on exports. Reiterate BUY with a TP of Rs 148/sh (30x Dec-18E EPS).

For all recommendations, click here

Disclaimer:
The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Sections
Follow us on
Available On