Buy Triveni Turbine; target of Rs 148: HDFC Securities

HDFC Securities' research report on Triveni Turbine

Triveni Turbine’s (TRIV) 4QFY17 revenue declined 14.6% YoY, owing to lower exports (-21.6% YoY), led by rescheduling of dispatches at the last minute. Increase in employee and operating costs led to 460bps decline in EBITDA margins to 21.0%. Driven by higher other income (Rs 101mn, +610% YoY), APAT stood at Rs 272mn (-20.6% YoY).

Outlook

Despite a weak 4QFY17, we retain faith in TRIV, given huge untapped global opportunities. Cost competitiveness, coupled with GE technology/brand, should enable TRIV to scale up (non-linear) its international market share. Reiterate BUY with a TP of Rs 148/sh (30x Mar-19E EPS).