Buy Triveni Turbine; target of Rs 719: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Triveni Turbine has recommended buy rating on the stock with a target price of Rs 719 in its research report dated August 06, 2024.

Broker Research

August 07, 2024 / 14:46 IST

Buy

Prabhudas Lilladher's research report on Triveni Turbine

Triveni Turbine (TRIV) reported revenue growth of 23.1% YoY in Q1FY25. EBITDA margin improved by 180bps YoY to 20.6%. Domestic order bookings were affected by the general elections, but are projected to accelerate in the coming quarters. TRIV has expanded its offerings to include turbines up to 120 MW, positioning itself to capitalize on growing demand from key sectors such as steel, cement and RE. The company also aims to capture a larger share of the API turbine market. Additionally, export growth is anticipated to be driven by increased demand in the Middle East, SEA and Europe. TRIV’s continued investments in R&D are expected to further enhance growth by introducing new products with broader applicability. We believe TRIV’s prospects continue to remain strong due to 1) healthy enquiry pipeline across markets, 2) growing share of higher margin exports & aftermarket sales, 3) strong traction in both industrial & API drive turbines, and 4) robust order book with strong inflows across businesses. The stock is trading at a P/E of 51.5x/38.8x FY25/26E EPS. We value the stock at a P/E of 45x FY26E (42x FY26E earlier) given the robust business outlook. Upgrade to ‘Buy’.

Outlook

We revise our FY25/26E EPS estimates by +3.1%/+2.9% factoring in better traction in exports and upgrade the rating to ‘Buy’ from ‘Hold’ with a revised TP of Rs719 (Rs612 earlier).

For all recommendations report, click here