Triveni Turbine Ltd. share price target

Stable Q3FY17; Enquiry Pipeline Encouraging Enquiry pipeline encouraging: Enquiry pipeline in the domestic market remainsaround 2.5Gw of which co-gen accounts for 67%, metals and renewable accounts for 20%. International enquiry book stands at 7Gw and the geographical spreadcomes about 135 countries which are close to twice the markets currently being served. GETL pipeline accounts for about 3Gw out of 7Gw.

Triveni Turbines (TRIV) 3QFY17 revenue (flat YoY) was below our estimates. However, better-than-expected EBITDA margins (26.3%, 550bps YoY) led to an in line PAT (Rs 351mn, 19% YoY). The superior EBITDA margin was led by the execution of high margin export orders and strong growth in after-market sales ( 27% YoY). Export ( 163% YoY) continues to be the growth driver, while the domestic segment (-41% YoY) continues to decline. Order book (Rs 6.3bn) declined 7% YoY.

Healthy Revenues and Margins, while Order Intake Lags: Overall order intake for Triveni Turbine Ltd (TTL) decreases to Rs.3091mn inH1FY17 compared to Rs.3813mn in H1FY16 while the consolidated order book stands at Rs.6119mn. The outstanding order book dominated by export orderswhich grew by 9% on YoY basis reaching to 44.5% of the order book.

Triveni Turbine (Triveni) reported a steady quarterly performance with revenue/PAT growth of 13/17% YoY in line with our estimates. Export ( 72% YoY) continues to be the growth driver while the domestic segment (-21% YoY) continues to decline. Exports led growth was witnessed across both products ( 14% YoY) and aftermarket sales ( 9% YoY).

Exports gaining traction; to drive growth irrespective of domestic scenario: Export at INR 96cr grew by 137% in 1QFY17 and constiituted 59% of the overall revenues, up from 42% in 1QFY16. Export revenues would continue to grow at a robust pace and keep increasing their share in revenue thereby reducing the company's dependence on the stagnant domestic market (domestic revenues declined by 22% during the quarter to INR 66cr (41% mix). Triveni is now focusing on getting closer to its clients by opening service centers in various geographies like UK, Dubai, Indonesia, SE Asia and LATAM. This should further strengthen Triveni's value proposition as clients would now...

Triveni Turbine (Triveni) 1QFY17 reported a stellar 1QFY17 with revenue/PAT growth of 25/23% YoY. Revenue traction was led by 137% YoY growth in exports (both product and after-market sales). Higher after-market sales ( 60% YoY) aided in 40bps YoY margin expansion to 20.5%.

Buy Triveni Turbine Ltd CMP at Rs. 114 Add on DIPS to band Rs. 114 - 105 for the Target of Rs. 130, 130 .

Triveni Turbine Limited(TRITURBINE) report a revenue/PAT CAGR of 13/14% over the next two years,primarily led by export orders. The aftermarket contributes 22% of its revenues, which explains the healthy EBITDA margins of ~21%. High capital efficiency (~4x FATO) and superior margins enable Triveni to have RoEs in excess of 30% and positive FCF on a consistent basis,expecting Triveni to command premium valuations. HDFC Securities initiate coverage with a BUY and a TP of Rs 128/share (FY18E P/E of 30x)

Trendlyne has 4 reports on TRITURBINE updated in the last year from 4 brokers with an average target of Rs 128

Triveni's turbine exports have ramped up to Rs 2.6bn in FY15 from Rs 350mn in FY11. In 1HFY16,exportsconstituted35%ofitsrevenuesofRs3bn(vs.32%in1HFY15).Aidedbya depreciating rupee, the company has consciously increased its reach in international...

Rising exports to counter restraint in domestic growth: We expect TTL to grow export revenues at a CAGR of 20.2% during FY15-17E to reach 48% of revenues by FY17E with focus on Europe, LATAM, Middle-East and African markets in the category upto 30MW power rated turbines.