Accumulate Triveni Turbine; target of Rs 558: Asit C Mehta

Asit C Mehta report on Triveni Turbine

Triveni Turbine Limited (TRITURBINE) is incorporated on June 27, 1995 is an India-based industrial steam turbine manufacturer. The Company is primarily engaged in the business of manufacturing and supplying power-generating equipment and solutions. Approximately 6,000 steam turbines supplied by the Company are installed across 20 industries in over 75 countries, including Europe, Africa, Central and Latin America, Southeast Asian and South Asian Association for Regional Cooperation countries (SAARC). It caters to varied and diverse industries, including Biomass IPPs (Independent Power Plants), municipal solid waste IPPs, district heating, palm oil, paper, sugar, naval, textiles, metals, cement, carbon black, solvent extraction, pharmaceuticals, chemicals, petrochemicals, fertilizers, oil and gas, municipal solid waste-based independent power plants (IPPs), and captive power plants (CPPs). The company’s products include backpressure turbines, condensing turbines, API steam turbines, and smart turbines.

Outlook

TRITURBINE is primarily engaged in the business of manufacturing and supply of power-generating equipment and solutions. It has a robust order book giving clear signs of Revenue Visibility over the next two to three years. We expect the company’s revenue to grow at a CAGR of 22.93% over FY23- FY26E. Hence, we recommend Triveni Turbine Limited with a target price of Rs 558 based on FY26E EPS of Rs 11.38 with a forward PE Valuation multiple of 49; it looks value BUY with growth potential at current levels. Hence, we recommend ACCUMULATE rating for the long term.