Updated March 4th, 2024 at 12:44 IST

Triveni Turbine set for strong growth, Motilal Oswal foresees 16% upside

The company expects 20% growth in domestic order inflows, driven by sectors like cement, steel, and fertilizers.

Reported by: Tanmay Tiwary
Triveni Turbine | Image:Triveni Turbine
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Triveni Turbine in focus: Industrial steam turbine manufacturer Triveni Turbine is set to capitalise on the upswing in private capital expenditure and the burgeoning turbine market, both domestically and internationally, Motilal Oswal analysts said.

Despite a recent slowdown in domestic order inflows, the company remains steadfast with a market share of 55-60 per cent in the domestic turbine market.

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The company expects 20 per cent growth in domestic order inflows, driven by sectors like cement, steel, and fertilizers.

Internationally, the Bengaluru-based company has made crucial strides, achieving a 58 per cent order inflow compound annual growth rate (CAGR) over financial year 2021-2023 (FY 21-23), particularly in the aftermarket segment.

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The Mumbai-based brokerage firm Motilal Oswal expects the company's international inflows to exhibit a rapid CAGR over financial year 2023-2026 (FY23-26), propelled by the increasing focus on renewables and industrial applications.

Triveni Turbine's diversified presence across industries positions it well for future growth, with expectations of a 21 per cent CAGR in domestic inflows over FY23-26.

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The company's expansion into additional geographies, such as South Africa and the US, further enhances its aftermarket capabilities and revenue potential.

Despite competitive pressures from players like Siemens and GE, Triveni Turbine maintains market leadership domestically and competes effectively internationally. Motilal Oswal's analysis factors in Triveni Turbine's higher export margins and increased costs, projecting a robust 32 per cent profit after tax (PAT) CAGR during FY23-26.

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Considering these factors, Motilal Oswal maintains a ‘buy’ rating with a target price of Rs 570. However, risks pertaining to order inflow growth, margin fluctuations, and global economic conditions remain pertinent considerations for investors, the brokerage firm added.

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Published March 4th, 2024 at 12:44 IST