Triveni Turbine rises 2% to hit new high in weak market on strong outlook

During Q3FY23, Triveni Turbine's order booking reached a new high of Rs 420 crore, leading to a total order booking of Rs 1,139 crore during 9MFY23, up 26.5 per cent YoY

Shares of Triveni Turbine hit a new high of Rs 312.70, up 2 per cent on the BSE in Wednesday’s otherwise weak market on a strong business outlook. In comparison, at 09:25 am, the S&P BSE Sensex was down 0.50 per cent at 60,385.

In the past three trading days, the stock of the company engaged in heavy electrical equipment business has rallied 10 per cent after it was added in the FTSE Global Smallcap Index. 

As per the semi-annual index review announcement, global index aggregator FTSE Russell has added 15 Indian stocks to its Global Smallcap Index, FTSE Russell had said in a release. The changes are effective from March 20, 2023.

Triveni Turbine is a focused and growing corporation having core competency in the area of steam turbines manufacturing up to 100 MW size. It is a dominant player in industrial steam turbines of up to 30 MW in India and also among the leading manufacturers of industrial steam turbines in the >5 to 30 MW range globally.

During October-December quarter (Q3FY23), Triveni Turbine’s order booking reached a new high of Rs 420 crore, leading to a total order booking of Rs 1,139 crore during 9MFY23, up 26.5 per cent when compared to the same period last year and only marginally below the order booking for the entire FY22.

With a solid performance across its geographies and business segments, the company had an impressive closing order book of Rs 1,232 crore, up 33 per cent year-on-year as on December 31, 2022, placing it in an extremely favourable position for the year to come.

With a strong focus in enquiry generation and aggressive coverage plans both in domestic and international markets, the management expects to convert large opportunities in the imminent future.

Analysts at Prabhudas Lilladher believe Triveni Turbine is favorably placed to capitalize on growth given its leadership position in the domestic 0-30MW turbine market, traction in 30-100 MW and API turbines and robust aftermarket strategy encompassing spares, service & multi-brand refurbishments.

Ordering activity is expected to continue with its growth momentum given a healthy enquiry pipeline, which grew 31 per cent YoY led by exports market (up 55 per cent YoY) from Southeast Asia, Europe, West Asia, North America. The margins are expected to sustain within the 19-21 per cent range in the medium term driven by better product mix (led by exports and aftermarket) and operating leverage, the brokerage said and maintain a ‘BUY’ rating at a target price of Rs 340 (Rs 328 earlier), valuing it at a PE of 35x FY25E.