Buy Triveni Turbine; target of Rs 79: Nirmal Bang

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26 Aug, 2025 12:21

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Nirmal Bang's report on Triveni Turbine (TTL)

"Triveni Turbine (TTL) posted 3QFY14 revenue of Rs 1.4bn compared to our estimate of Rs1.3bn, down 19 percent YoY, following a lower opening order book and high base effect of 3QFY13. Aided by better operating leverage, operating profit margin grew 250bps QoQ at 22.2 percent, translating into EBITDA/PAT of Rs313mn/Rs207mn, respectively. TTL posted robust order intake for the quarter at Rs1.7bn versus Rs1.4bn inflow in 1HFY14, driven by life-time high quarterly exports worth Rs 980mn. The GE-Triveni joint venture (JV) also won its first international 38MW order from South East Asia, paving the way for its global penetration. With a rising order book (up 16 percent QoQ at Rs 5.2bn), improved export penetration, scaling up of GE-Triveni JV and a healthy enquiry pipeline, we expect FY15 to be a very strong year, with a 42 percent YoY rise in revenue and a 68 percent YoY jump in earnings led by healthy operating leverage. We remain positive on TTL's business scalability and strong financial health and have therefore retained our Buy rating on it. We have rolled forward our valuation to FY16E earnings with a revised target price of Rs 79 (Rs 64 earlier) based on 17xFY16E EPS, (15x earlier), following a better earnings growth trajectory (36 percent CAGR likely over FY14E-FY16E versus a 3 percent CAGR decline over FY12-FY14E)," says Nirmal Bang research report.

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