Sharekhan's research report on Triveni Engineering and Industries
Triveni Engineering & Industries’ (TEIL’s) Q1FY2024 performance was hit by lower domestic sugar sales volumes due to lower quota allocation. Gross revenues and PAT grew by 5% and 16% y-o-y, respectively. Company maintained guidance of double-digit growth in ethanol production with expanded capacity to 1,110 KLPD over the next two years. TEIL sees no major impact of FCI suspension of surplus rice for ethanol production. Mix will determine business’ profitability. Engineering business is scaling up well and has a strong order booking of Rs. 1,613 crore. TEIL foresees strong opportunities in the defence business (investing Rs. 40 crore in capex).
Outlook
Stock trades at 15.2x and 11.87x its FY2024E and FY2025E earnings, respectively. We maintain a Buy with a revised PT of Rs. 360.
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