Buy Triveni Turbine; target of Rs 720: Motilal Oswal

Motilal Oswal is bullish on Triveni Turbine has recommended buy rating on the stock with a target price of Rs 720 in its research report dated August 06, 2024.

Broker Research

August 07, 2024 / 13:03 IST

Buy

Motilal Oswal's research report on Triveni Turbine

TRIV’s 1QFY25 results exceeded our expectations on all parameters. The company reported revenue/EBITDA/PAT growth of 23%/35%/32% YoY. Persistent weakness and the impact of elections resulted in muted 2% YoY growth in domestic order inflows, whereas export order inflows surged 74% YoY. While we expect exports to improve further going ahead as the US foray ramps up, the domestic order inflow pipeline will see a gradual pickup in ensuing quarters given a strong enquiry pipeline from key end-user industries. We tweak our estimates to factor in lower domestic revenues and roll forward our valuation. We maintain our BUY rating with a TP of INR720, based on 48x Jun’26E EPS.

Outlook

The stock is currently trading at 45x/34x FY26E/FY27E EPS. We marginally revise our estimates and roll forward our TP to Jun’26E EPS. We maintain our TP of INR720 based on 48x Jun’26E EPS. Key risks to our recommendation would come from slower-than-expected order inflow growth (particularly in domestic markets), lower-than-expected margins, and a slowdown in global geographies.

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