Hold Triveni Turbine; target of Rs 612: Prabhudas Lilladher

Prabhudas Lilladher recommended hold rating on Triveni Turbine with a target price of Rs 612 in its research report dated May 17, 2024.

Broker Research

May 20, 2024 / 16:51 IST

hold

26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on Triveni Turbine

Triveni Turbine (TRIV) reported revenue growth of 23.9% YoY, driven by product sales and strong exports. EBITDA margin improved by 167bps YoY to 19.6%. Order booking & enquiry generation during Q4FY24 were lower than expectations, due to delay in finalization of orders and slower domestic activity. However, Domestic enquiry pipeline remains robust. There is a healthy growth outlook for aftermarket with TRIV expanding its service offering in international markets and for API turbines given increasing investment in O&G. TRIV continues to invest in its skilled workforce with further planned addition of 20-25% in FY25 focusing on high growth and capturing high value orders. 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 54.0x/40.6x FY25/26E EPS. We roll forward to FY26E and value the stock at a P/E of 42x FY26E (35x Dec-FY25E earlier) given the robust business outlook. Downgrade to ‘Hold’.

Outlook

We revise our FY25/26E EPS estimates by -0.9%/+2.3% and downgrade the rating to ‘Hold’ from ‘BUY’ with a revised TP of Rs612 (Rs532 earlier) owing to a steep run up in the stock price.

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