Triveni Turbine Gets 'Buy' From UBS Global Research On Expansion Of Global Presence

Triveni Turbine Ltd. received a 'Buy' rating from UBS Global Research with a target price Rs 900, which implied a 42.26% upside from Wednesday's closing price. UBS Global Research initiated coverage with higher target because it sees 30% compound annual growth rate for Triveni Turbine during financial year 2024-FY2028 because of expansion of global presence.

UBS Global Research estimates 14% and 34% domestic and export revenue CAGR over the period FY2024-FY2028. In the brokerage's view, Triveni Turbine is the best player in the domestic steam turbine market. It has outperformed in the last five years with 15% domestic topline growth.

Triveni Turbine has a market share of over 50%. It has been able to improve visibility in the non-utility steam turbines, which was reflected in recent orders.

Triveni Turbine's credible global scale-up potential is underappreciated by the Street, according to UBS Global Research.

Triveni Turbine's market share gains in global services are much larger, given low share and opportunities for market share consolidation. The company has a 14% global share, UBS Global Research said. Triveni Turbine's investment in North America market will likely drive growth in after-sales. The company is also a solid global player in renewable steam turbines.

UBS Global Research expects Triveni Turbine to drive 30% earnings growth between FY2024 and 2028. The company may post 23% and 28% growth in product and after-sales services between the mentioned period due to its better positioning in larger turbines, building a success story in secondary air damper control.

The brokerage estimates 25% and 30% topline and EPS CAGRs for FY24-FY28.