Hold Triveni Turbine; target of Rs 125: Sharekhan

Sharekhan's research report on Triveni Turbine

We met the management of Triveni Turbine to understand the current business environment and future growth prospects. Management has indicated that the order book has remained healthy at Rs. 776 crore and is witnessing pick-up in demand, giving us visibility of mid-teens revenue growth for the next two years. However, change in sales mix and higher input cost would put a toll on margins in the near term.

Outlook

The stock is trading at 27.8x its FY2020E earnings, which we believe is fairly valued with limited upside potential. Hence, we maintain our Hold rating with unchanged PT of Rs. 125.