Triveni Turbine shares jump 32% in 6 sessions

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Triveni Turbine shares jump 32% in 6 sessions

Despite the broader market decline, Triveni Turbine shares jumped 20% during today’s intraday session, hitting a record high. It closed with a gain of 12.33% before ending the trade at Rs 838 per share. 787 per share. The surge reflects investor enthusiasm following the company’s strong June quarter results released on August 06, which beat analysts’ expectations across all parameters. Today’s rally has taken the stock’s gain to 32% in the last six days.

The company recorded a 23.1% annual growth in consolidated revenue to reach ₹1,24,444 crore in 2018-19. 4.6 billion. Product revenue increased by 24.2% year-on-year 3.1 billion, while aftermarket revenue grew 21.1% year-on-year 1.6 billion.

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EBITDA (earnings before interest, tax, depreciation, and amortization) grew 34.8% year-on-year to Rs 1,000 crore. 956 million, and EBITDA margin expanded by 180 basis points to 20.6%. Its net profit after tax (PAT) grew 31.7% year-on-year to 956 million. 800 million, more than estimated 770 million, led by strong operating performance and a 45.2% increase in other income 194 million.

Triveni Turbine reports order inflow in Q1 FY25 The export order stood at $6.4 billion, which is 40.4% higher than last year. Export orders grew by 74.1% to $6.4 billion compared to last year. Turnover stood at $4.2 billion, driven mainly by strong orders from the Middle East oil and gas industry.

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Analysts say prospects for exports remain strong to key regions including Europe, South-East Asia, the Middle East and the US, covering both products (industrial and API turbines) and aftermarket services (refurbishments, spares and maintenance). The company’s order book is as follows: 17.3 billion.

Although domestic order receipts were impacted due to the general elections, the company reported a 14% year-on-year growth in enquiry pipeline. Order finalisation is expected to pick up in the upcoming quarters, driven by sectors such as steel, cement, distilleries, renewable energy investments and waste-to-energy projects.

The company said there is significant order visibility in the large megawatt segment as well, providing revenue visibility for FY25 and FY26.

professional development

The company’s research and development efforts have led to turbines with capacities ranging from 110 to 120 MW, which are becoming popular among steel plants and oil and gas facilities. These turbines cater to industrial applications requiring high-process steam.

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Additionally, Triveni Turbines has invested The company has invested $200 million in its US subsidiary so far. This investment has led to improved enquiries in the US, mainly due to greenfield and brownfield expansions and some replacement demand. The company plans to continue to focus on its aftermarket business, given the strong market for refurbishment, parts and services.

Target prices missed

Domestic brokerage Prabhudas Lilladher has upgraded the rating on Triveni Turbine to ‘buy’ and raised its target price to Rs 2,000 crore, following the company’s June quarter results. ₹ 719 per share.

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The brokerage says Triveni Turbine’s prospects remain strong due to several factors: healthy enquiry pipeline across various markets, growing share of high-margin exports and aftermarket sales, robust demand for industrial and API-driven turbines, and a solid order book with strong flows across various business segments.

Similarly, Motilal Oswal has also maintained its ‘buy’ rating on the stock with a target price of 720 per share. However, the stock has already crossed the target prices of both the brokerage firms.

Disclaimer, The views and recommendations expressed in this article are the views of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decision.

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Triveni Turbine’s Stock Jumps 20% on Record-Breaking Earnings

The stock of Triveni Turbine soared 20% on today’s intraday session, hitting an all-time high. The surge reflected investor enthusiasm following the company’s outstanding June quarter results, which exceeded analysts’ expectations in all aspects.

In 2018-19, the company reported a significant annual growth in consolidated revenue, reaching Rs 124,444 crore. Its product revenue grew by 24.2%, while aftermarket revenue increased by 21.1%. The company’s EBITDA expanded by 34.8% to Rs 1,000 crore, and EBITDA margin expanded by 180 basis points to 20.6%.

The company recorded order inflow in Q1 FY25, with export orders growing 74.1% to $6.4 billion compared to the previous year. Orders stood at Rs 17.3 billion.

Experts maintain that prospects for exports remain strong to key regions such as Europe, South-East Asia, the Middle East, and the US, driven by product sales and aftermarket services.

Additionally, Triveni Turbines has invested $200 million in its US subsidiary, which has led to improved enquiries. The company plans to continue to focus on its aftermarket business, given the strong market demand for refurbishment, parts, and services.

Experts Upgrade Target Prices

Domestic brokerage Prabhudas Lilladher has upgraded Triveni Turbine’s rating to “buy” and raised its target price to Rs 2,000 crore. Similarly, Motilal Oswal maintained its “buy” rating with a target price of Rs 720 per share. However, the stock has already crossed both brokerage firms’ target prices.

Disclaimer

The views and recommendations expressed in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to consult with certified experts before making any investment decisions.