Buy Triveni Turbine on dips: Prakash Diwan

Prakash Diwan of Altamount Capital Management told CNBC-TV18, "Triveni Turbine is a company from the heavy engineering side, an area that nobody is really watching very actively or looking at it very promisingly. However, it has been a market leader in the sub-30 megawatt turbines. Steam turbines are used for a lot of small units which get into independent power production either as cogeneration or for their own captive consumption. It is not necessarily the merchant power producers. So anybody who is looking at expansion, who needs heating, who needs cooling, who needs anything to do with temperature control would have to set up a steam turbine unit. Those units are going to start raving up again and there will be a little bit of Brownfield expansion and all of them will need these kind of equipment to be brought in. They indicated last quarter that there was a decent topline growth; the order booking was pretty good and they still felt there were lot of enquiries and spill overs which should go into the next quarter."

"It is given that the last quarter of this year is going to be very nice, they have already clocked for the first nine months earnings per share (EPS) of about Rs 1.87 as compared to about Rs 2 for the whole of last year. There is growth in a dull year of sorts and come April what is going to happen is the government will start spending a lot on pump priming the heavy engineering side with the lot of businesses and the chemical and the co-generation side," he said.

"Triveni's export order is very impressive; it has grown around 30 percent over last year. So all the matrix looks so positive for this company which is anyways one of the marquee names in this area. It is just that the environment is slightly dull and it is undervalued. One could really buy at dips and wait for about 6-8 months for it to start raising up."