Buy Triveni Engineering; target of Rs 380: ICICI Direct

ICICI Direct is bullish on Triveni Engineering recommended buy rating on the stock with a target price of Rs 380 in its research report dated November 07, 2022.

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November 11, 2022 / 12:44 PM IST

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ICICI Direct's research report on Triveni Engineering

Triveni Engineering (TEL) is one of the largest sugar companies in India with sugar crushing capacity of 60,000 TCD, distillery capacity of 660 KLD & co-generation power of 104.5 MW. It also has power transmission & waste water management business contributing 10% to revenues. The company is increasing its distillery capacity from current 21 crore litre per annum to 31 crore litre per annum by FY25 to utilise B-heavy, grain & sugarcane juice route to produce ethanol.

Outlook

We expect 55.5% CAGR in distillery sales to boost earnings CAGR of 20.3% during FY22-24E • We maintain our BUY rating on the stock. We value the stock at Rs 380, valuing the business at 14x FY24 PE.