Triveni Turbine can touch Rs 65, says SP Tulsian of sptulsian.com.
Tulsian told CNBC-TV18, "Triveni Turbine has been created after hiving off the turbine division from Triveni Engineering, which is now a sugar company. If you see the business model of the company, they have 60 percent of the market share up to 30 mw capacity of turbine and this 30 mw turbines are used in diverse nature of industries and companies catering almost about 18 industries and they have good presence."
He further added, "They have global presence. They have their products exported to about 30 countries, not merely in India but the market share of 60 percent is for the Indian market and going by their fundamentals, in fact they have been the consistent performe. Earlier also when this used to the combined entity with sugar always this division of the turbine use to balance the company with the consistent performance."
"They have already declared their Q2 numbers and if I go by their H1 numbers, they have posted a topline of close to about Rs 290 crore and their EBITDA margin is close to about 25 percent. If I take their expected EPS for FY13 they are likely to post an EPS of close to about Rs 3 because for H1 the EPS is close to about 1.30."
"If you go by the shareholding pattern – 75 percent of the shares are held by the promoters and about 19 percent shares are hold by the institutional investors. Going by the consistent performance, in fact you can place this company into the capital goods space and one may argue that the PE multiple of 16-17 looks quite stretched but this company can very well get compared with the company like Thermax, which have been posting the consistent performance which also have the presence in the similar space though they have the larger and diverse product profile."
"Taking all this into consideration the stock looks good at the current price and if somebody can keep a view of about six months, can expect a price of Rs 65." Disclosure: I have no holdings in the above stock.
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