Moneycontrol PRO

Buy Triveni Engineering and Industries; target of Rs 285: Sharekhan

Sharekhan is bullish on Triveni Engineering and Industries has recommended buy rating on the stock with a target price of Rs 285 in its research report dated August 04, 2022.

August 06, 2022 / 10:39 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Sharekhan's research report on Triveni Engineering and Industries


Triveni Engineering & Industries’ (TEIL’s) operating performance in Q1FY2023 was affected by nil exports during the quarter. Revenues grew by 23% while the EBIDTA margins decreased by 509 bps to 8.4%. Excluding export subsidies in base quarter, margins would be lower by 100 bps y-o-y. India’s sugar production is expected to grow by 3-4% in the next sugar season. Debottlenecking of facilities, better surveillance and good rainfall in TEIL’s cane production area will help in generating higher yields for the company in next sugar season. Ethanol capacity to expand to 1,110 KLPD by FY2024 from 660 KLPD currently. Steady sugar sales led by higher realisation, higher revenues from the distillery business, and recovery in the engineering business (order book of Rs. 1,889 crore) would drive earnings in the near term.



Outlook


Stock has corrected by ~23% in past three months and trades at 16.3x and 13.2x its FY2023E and FY2024E earnings, respectively. We maintain a Buy with a revised PT of Rs. 285.

Close

For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Triveni Engineering & Industries - 050822 - khan

Broker Research
first published: Aug 6, 2022 10:39 pm
Sections
ISO 27001 - BSI Assurance Mark