Buy Triveni Turbine; target of Rs 650: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Triveni Turbine has recommended buy rating on the stock with a target price of Rs 650 in its research report dated August 05, 2025.

Broker Research

August 06, 2025 / 13:52 IST

buy

26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on Triveni Turbine

We revise our FY26/FY27 EPS estimates by -10.6%/-15.8% accounting for slippage of orders and execution due to geopolitical uncertainties. Triveni Turbine (TRIV) reported a weak quarter, with revenue declining 19.9% YoY and EBITDA margin contracting 81bps YoY to 19.8%. Performance was impacted by geopolitical uncertainties, which led to inspection delays, affecting dispatches, revenue recognition, and export order bookings. Despite a subdued quarter, the management remains optimistic about FY26, supported by a strong increase of ~130% YoY in domestic enquiry pipeline, driven by demand from steel, cement, sugar and process cogeneration sectors along with healthy traction for API as well as drive turbines. However, as Triveni moves to larger value contracts, it may cause lumpiness in the company’s revenue. Meanwhile export enquiries declined ~5% YoY due to weaker demand in Europe, SAARC and Southeast Asia, this was partly offset by ~175% surge in enquiries from the USA and improving traction in Central Asia and Africa. The launch of a new heat pump during the quarter is also expected to expand the company’s export addressable market and open up new avenues for growth.

Outlook

The stock is trading at a P/E of 40.2x/32.8x on FY26/27E EPS. We maintain ‘BUY’ rating with a revised TP of Rs650 (Rs772 earlier), valuing the stock at a P/E of 40x Mar’27E (same as earlier).

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