Triveni Turbine Ltd (TTL) is the domestic market leader in steam turbines up to 30 MW. The company designs and manufactures steam turbines up to 100 MW, and delivers robust, reliable, and efficient end-to-end solutions. TTL reported a strong revenue growth of 29% YoY in Q2FY25, led by superior execution in the Product segment (26% YoY) and aftermarket business (38% YoY). EBITDA margin improved by 306bps YoY to 22.2%, due to better revenue mix and a drop in other expenses. The order book grew by 22% YoY, supported by 33% YoY growth in order inflows in H1FY25. Strong growth in export orders by 74% YoY, combined with an improvement in export contribution (61% mix), provides visibility for both revenue and profitability for FY25. Domestic order inflow remains weak in H1FY25 due to election, however TTL expects an improvement in the cycle on account of higher government spending and growing demand from sectors like steel, cement and renewable energy.
OutlookWe expect revenue/PAT to grow at a CAGR of 28%/27% respectively over FY24-FY27E. We therefore revise our rating to BUY and value the stock at a P/E of 50x on FY27E EPS with a revised target price of Rs 835.
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