Prabhudas Lilladher's research report on Triveni Turbine
Triveni Turbine (TRIV) reported healthy performance on account of better sales mix and execution ramp up. Margins expanded by 222bps to 13.8% in 4Q, led by sharp rise in aftermarket revenues and reduction in overhead cost. OI grew 5% YoY to Rs1.7bn in 4Q, primarily driven by strong growth in domestic markets (up 57% YoY). Order backlog remained subdued at Rs6.4bn. For domestic segment, enquiry generation grew 35% YoY led by traction in process co-generation and waste to heat recovery from sectors like F&B, paints, pharma, chemicals and cement. In exports market, enquiry generation was seen in markets of Middle East, North America, Europe, Turkey, etc. for thermal renewable based IPP power plant and process cogeneration segment. Management is confident of bagging healthy order wins in FY22 with strong enquiries in both domestic and international markets.
We maintain ‘Buy’ rating on stock with a revised TP of Rs156 (earlier TP of Rs98). Further we raise our PE multiple to 30x (avg. of 10 years) from 24x earlier, given improved order inflow visibility and diversification in new products.
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