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.
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).
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).
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