Hold Triveni Turbine; target of Rs 145: Sharekhan

Sharekhan has recommended to hold Triveni Turbine with a target price of Rs 145, in its research report dated March 25, 2015.

July 31, 2015 / 20:28 IST

26 Aug, 2025 12:21

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Sharekhan 's report on Triveni Turbine

“Triveni Turbines Ltd (TTL) has seen a strong ramp-up in export orders intake (up 131% year on year [YoY] in M9FY2015) aided by good demand from renewable and waste heat recovery projects. The company is expecting a few more orders based on the successful commissioning of its prototype orders and is in the process of opening international service centres to cater to new markets. Its high-margin after-market business is also doing well (up 33% YoY in M9FY2015) and is likely to boost its margin to more than 22% in the coming quarters.”

“Europe constitutes 30% of its export business mainly from the renewable segment (biomass). Hence, a 13% fall in the euro currency in the last six months could result in a loss of its cost-competitiveness as the company claims that it enjoys 10-15% manufacturing cost advantage over its global peers like Siemens India. The management indicated that the impact of foreign currency fluctuation is likely to be limited in the quarterly results as TTL follows 100% back-to-back hedging policy.”

“We remain positive on its strong competitive positioning, robust order backlog and healthy balance sheet (debt-free with superior return ratios). Since our initiation on November 13, 2014, the stock has given an absolute return of 46%. After the recent rally, the stock’s valuation is now looking fair at 24x FY2017 earnings estimate. Hence, in view of limited upside, we are downgrading our rating on the stock from Buy to Hold with a revised price target of Rs145 (26x of its FY2017E EPS)”, says Sharekhan’s research report.

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