Buy Triveni Turbine, target price Rs 273: Yes Securities

Yes Securities has buy call on Triveni Turbine with a target price of Rs 273. The current market price of Triveni Turbine Ltd. is Rs 179.1. 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 5806.57 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 31-03-2022, the company reported a Consolidated Total Income of Rs 244.32 Crore, up 4.62 % from last quarter Total Income of Rs 233.52 Crore and up 33.68 % from last year same quarter Total Income of Rs 182.77 Crore. Company reported net profit after tax of Rs 33.02 Crore in latest quarter.

Investment Rationale
The brokerage believes, 1) company’s strong margin profile, 2) lean working capital, 3) healthy cash flows, balance sheet and 4) long term growth prospects (~diversification in new types of turbines) will support its valuations and future projections. Given strong enquiry pipeline, management`s focus on cost rationalization and improving operational efficiency, it expects company to generate revenue/PAT CAGR of 25%/29% from FY21 to FY24E. The stock is currently trading at 31.9x/25.5x FY23E/24E EPS. It maintains BUY rating on the stock with a TP of Rs273 valuing at 40x FY24E EPS of Rs6.8.

Promoter/FII Holdings
Promoters held 67.78 per cent stake in the company as of 31-Mar-2022, while FIIs owned 16.4 per cent, DIIs 12.23 per cent.