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Nirmal Bang Report
Triveni Turbine Ltd.'s revenue grew by 24% YoY to Rs 4.6 billion with Ebitda margin coming in at 19.6%. Adjusted profit after tax grew by 36.9% YoY to Rs 760 million.
The product/aftermarket services segment revenue changed by 42%/-3% YoY to Rs 3.1 billion/Rs 1.4 billion, leading to a sales mix of 69%/31%.
Order booking for Q4 FY24 fell by 7% YoY to Rs 4.4 billion, mainly led by lower domestic order booking. Order backlog grew by 17% YoY to Rs 15.5 billion with domestic: export mix at 48%:52%.
The domestic 0-100 mega watt market has grown by ~25% to 2500 MW. The after-market segment has crossed the Rs 6 billion mark in annual order booking during the FY24.
While we remain structurally positive on Triveni Turbine's long term business prospects, the stock has run up ~50% from our last published note ( Feb, 07, 2024).
As a result, we Downgrade to Accumulate with a revised target price of Rs 605 (40 times on March'26E EPS). In the near term, we expect strong order booking, enhanced servicing capabilities, efficiency to scale up operations, R&D proficiencies and expanding its aftermarket services in both domestic and international markets to drive growth.
We believe it is a long-term compounder, and therefore, it should be accumulated at every dip.
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