Buy Triveni Turbine; target of Rs 640: Motilal Oswal

Motilal Oswal's research report on Triveni Turbine

Triveni Turbine’s (TRIV) 2QFY26 PAT beat our estimate on better-than-expected margins. Domestic order inflows have started improving and enquiry levels too have remained broad-based. Export order inflows are still weak due to delays in decision making from customers. Weak inflows can result in volatility in export revenue. We thus believe that TRIV’s near-term performance would be impacted by delays in order finalization. As it picks up in FY27, execution will start ramping up. We broadly maintain our estimates and roll forward our TP to INR640 on 40x Dec’27 estimates. Retain BUY as the company is continuously introducing new products and has the capability to ramp up sharply whenever demand starts reviving.

Outlook

We revise the TP to INR640 (from INR620) based on 40x Dec’27E EPS. Maintain BUY. However, in the near term, we expect performance to remain impacted by weakness in order conversions.