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Prabhudas Lilladher Report
Triveni Turbine Ltd. reported revenue growth of 45.3% YoY, driven by aftermarket growth (up 90.8% YoY). Despite gross margin expansion of ~841 basis points YoY, Ebitda margin remained flat at 18.8%, due to sub-contracting charges related to refurbishment order in South Africa.
Enquiry pipeline remains strong from domestic as well as exports market, thereby providing order inflow visibility. Domestic ordering activity is likely to improve from Q2 FY24 (down 16% YoY in Q1 FY24) given robust enquiry pipeline (up 56% YoY).
API turbine is witnessing traction and likely to pick up its growth momentum, driven by increasing acceptance of Triveni Turbine as approved vendor globally.
Aftermarket segment is likely to continue its growth momentum, mainly driven by refurbishment orders. We believe Triveni Turbine is well placed to benefit from-
continued strong inquiry pipeline (up 22% YoY) from domestic as well as exports market,
strong market share (~50%) in domestic market (0-100 mega watt),
traction from 30- 100 mw and API turbine, and
focus on aftermarket segment with strategy to penetrate into newer geographies for third party turbine refurbishment.
We maintain ‘Accumulate' rating on stock with revised target price of Rs 419 (Rs 416 earlier), valuing it at 37 times FY25E (same as earlier).
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