Target: : ₹455

CMP: ₹413.05

Our interaction with Triveni Turbine Limited (TTL) reinstates our faith in its strong growth trajectory, driven by increasing industrial demand for energy-efficient turbines. Management is confident of achieving strong order inflows in FY2024 and expects about 35 per cent revenue growth in the next couple of years.

The company, with sufficient capacity expansion, is prepared for high growth in the coming years. The company aims PBT margin of about 20 per cent conservatively. TTL continues to be the leader in the 0-30 MW steam turbine market and has industry-leading margins. TTL is currently focused on increasing its addressable overseas.

As per our interaction with TTL and its annual report for FY2023, the inquiry pipeline is promising in both the 0-30 MW and 30-100 MW segments in the domestic and international markets, respectively. Further, the company is likely to gain a strong foothold in key export markets through its after-market business.

The company has undertaken capital expansion and has strengthened its supply chain and sales network through employee additions to cater to the growing demand and tap new markets.