Triveni Turbine Ltd - quarterly EPS increased by 31.9%.
A manufacturer of steam turbines for industrial and renewable energy applications
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Company name - Triveni Turbine Ltd
Last closing price(NSE:TRITURBINE) - ₹795.8 (as on 11-Oct-2024)
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Executive Summary
Triveni Turbine is primarily engaged in the design, manufacture, and supply of steam turbines for industrial and renewable energy applications, focusing on turbines with a capacity of up to 100 MW.
Triveni is well-positioned to leverage opportunities in the growing renewable energy sector, providing turbines for biomass, waste-to-energy, and geothermal projects. Their commitment to sustainable energy solutions aligns with global decarbonization trends.
The company is debt free and the ROCE is strong at 38.3%.
The quarterly net profit increased by 31.1% and EPS increased by 31.9%.
Stock price chart
Detailed analysis
About the company
Power Generation Solutions: Triveni Turbine is primarily engaged in the design, manufacture, and supply of steam turbines for industrial and renewable energy applications, focusing on turbines with a capacity of up to 100 MW.
Global Reach: The company caters to both domestic and international markets, with a significant presence in industries such as process industries (which require steam) and renewable-based applications.
Aftermarket Services: Triveni also provides comprehensive aftermarket services, including refurbishment, which is a major growth area.
Future prospects
What is the company’s plan to maintain earnings growth in future?
Global Expansion and Market Penetration:
Triveni aims to strengthen its global footprint, especially through its new subsidiary in Texas, USA, which will help build stronger customer relationships and local market presence. This is a key market for industrial turbines, and the company believes it will contribute significantly to future growth.
The company has a significant presence across 80 countries, with a strong focus on Europe, Southeast Asia, and Africa.
Focus on Renewable Energy
Triveni is well-positioned to leverage opportunities in the growing renewable energy sector, providing turbines for biomass, waste-to-energy, and geothermal projects. Their commitment to sustainable energy solutions aligns with global decarbonization trends.
Innovation and R&D
The company is investing heavily in developing supercritical CO2 turbines and exploring thermal battery solutions for energy storage, which are seen as future growth areas.
Aftermarket Expansion
The aftermarket segment, including refurbishment services and spare parts, remains a strong driver of growth. Triveni aims to expand this portfolio and tap into more international markets.
Potential risks that can hamper the future growth?
Order Booking Cyclicality: Triveni operates in a business where order bookings can be cyclical and lumpy. This could impact revenue predictability, although the company has managed this volatility with a strong order book providing visibility into FY 25 and FY 26.
Macroeconomic and Geopolitical Risks: The company faces risks from geopolitical tensions and economic slowdowns in advanced economies like Europe and Southeast Asia. Although Southeast Asia is showing positive trends in the service business (refurbishment), product orders in this region have been slower than expected.
Supply Chain and Inflationary Pressures: Global supply chain disruptions and inflation continue to be potential risks. However, the company benefits from a strong domestic supply chain, which provides resilience in times of global challenges
Financial analysis
Overview
The promoter holding is 55.8%, and pledged percentage is 0%.
The company is debt free and the ROCE is strong at 38.3%.
Quarterly results
Growth in key metrics in the latest quarter Q1 - 2025 compared to the last year’s same quarter -
The company has consistent double digit sales growth with 23.08% growth reported in the latest quarter.
The operating profit increased by 35.2%, with operating profit margins increasing by 10.5%
The net profit increased by 31.1% and EPS increased by 31.9%.
Annual results
Growth in key metrics in the last financial year 2024 compared to the previous financial year -
The company reported a sales growth of 32.58%, and operating profit growth of 36.59%.
The net profit increased by 39.37% and EPS increased by 39.3%.
Peer comparison
The company has the 2nd highest net profit reported in the last 12 months at 269.49, among the peers in similar market cap range.
The company has highest operating profit margin among it’s peers at 19.71%.
Timing analysis
Institutional high trading volume signs seen recently in the week of 05-Aug(7.85X), 12-Aug(14.2X) and 07-Oct(5X).
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Credits : Financial data source - screener.in