Prabhudas Lilladher recommended Accumulate rating on Triveni Turbine with a target price of Rs 124 in its research report dated August 05, 2019.
Prabhudas Lilladher's research report on Triveni Turbine
Triveni Turbine Ltd (TRIV) reported strong set of numbers with revenue/PAT up 24%/62% YoY, led by pre-ponement of few large orders in the domestic market and 280bps YoY expansion in EBITDA margin (in-line with management guidance). While order inflow (OI) was lower 10% YoY, enquiry pipeline looks encouraging from sectors like molasses based distilleries, pulp paper, process co-generation and steel & cement. Order backlog (OB) was down 7% YoY which management is confident of higher year end number. The company has successfully penetrated its products in new geographies like Middle East, Africa and some parts of South East Asia. We expect Aftermarket segment also to benefit due to presence in newer international geographies. GE Triveni JV registered a total revenue of ~Rs578 mn with a profit after tax of ~ Rs86 mn during the quarter. Management has maintained guidance for double digit revenue growth and expansion in margin in FY20.
We have maintained our numbers and expect TRIV to deliver revenue/PAT CAGR of 12/19% over next two years (FY19-21E). The stock is currently trading at 27/23x FY20/FY21E. We maintain Accumulate with TP of Rs124 (28x FY21E).
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