Buy Triveni Turbine, target price Rs 240: Prabhudas Lilladher

Prabhudas Lilladher has buy call on Triveni Turbine with a target price of Rs 240. The current market price of Triveni Turbine is Rs 189. Time period given by analyst is one year when Triveni Turbine Ltd. price can reach defined target.

Triveni Turbine Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 6063.59 Crore) operating in Engineering sector.

Triveni Turbine Ltd. key Products/Revenue Segments include Turbines, Spares And Others, Sale of services, Export Incentives, Other Operating Revenue, Turbine Extended Scope Project, Scrap for the year ending 31-Mar-2021.


Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 266.49 Crore, up 9.07 % from last quarter Total Income of Rs 244.32 Crore and up 40.55 % from last year same quarter Total Income of Rs 189.61 Crore. Company reported net profit after tax of Rs 38.33 Crore in latest quarter.


Investment Rationale
The brokerage believes strong order book at Rs10.7bn, robust enquiry pipeline, incremental opportunity with foray into 30-100MW market & API Turbines and favorable product mix likely to aid margins and drive growth in medium term. Accordingly, it expects revenue/PAT CAGR of 27%/34% for FY22-24E. The stock is trading at PE of 37.2/28.1x FY23/24E. It maintains ‘Buy’ rating on stock with TP of Rs240 (same as earlier), valuing it at PE of 35x FY24E EPS.

Promoter/FII Holdings
Promoters held 67.78 per cent stake in the company as of 30-Jun-2022, while FIIs owned 16.97 per cent, DIIs 11.56 per cent.