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CD Equisearch
Triveni Turbine (Accumulate)
CMP: ₹138.45
Target: ₹155
Triveni Turbine offers steam turbine solutions for industrial captive and renewable power from its plant in Bengaluru. It also provides after market services to users of its own turbines as well as that of others.
Hit by GST and subdued overseas order booking earnings floundered, precipitating earnings cut (FY18’s rolled back by nearly a third). Yet Triveni’s imposing export markets of Europe, South East Asia (mainly sugar sector) and West Asia (oil & gas) has of late buoyed order inflows; export revenues estimated to rise by 20 per cent next fiscal; post tax earnings would also jump at least 20 per cent on higher margins. On balance, we retain our ‘accumulate’ rating on the stock with revised target of ₹155 (previous target: ₹143) based on 40xFY19e earnings (forward PEG: 2; average three-year TTM P/E: 37.5) over a period of 6-9 months).
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