Rs 95 to Rs 598: This power stock turned into a multibagger in five years; down 34% from record high 

Shares of multibagger Triveni Turbine Ltd have delivered 529% percent returns to investors in the last five years. The power equipment stock, which closed at Rs 95 on February 6, 2020 hit a high of Rs 598 in the current session, clocking 529% returns during the period. In comparison, Sensex has risen 89.77% in five years. The multibagger stock rose 5.16% to Rs 598 in the current session. Earlier, the stock opened higher at Rs 574.85 against the previous close of Rs 568.65 on BSE. The power sector stock has gained 23% in a year and risen 179% in three years.

Total 0.77 lakh shares of the firm changed hands amounting to a turnover of Rs 4.55 crore on Friday. Market cap of the firm climbed to Rs 18,489 crore. The stock hit a 52-week low of Rs 421.10 on February 13,2024 and a record high of Rs 885 on November 26, 2024. The stock has lost 34% from record high.

In terms of technicals, the relative strength index (RSI) of the stock stands at 32.5, signaling it's trading neither in the overbought and nor in the oversold zone. Triveni Turbine shares have a beta of 0.8, indicating very low volatility in a year. Triveni Turbine shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day 200 day moving averages.

Eight promoters held 55.84 per cent stake in the firm and 1.49 lakh public shareholders owned 44.16 per cent or 14.03 crore shares for the quarter ended December 2024. Of these, 1,45,081 resident individuals held 1.34 crore shares or 4.24% stake with capital up to Rs 2 lakh.

In the December quarter of this fiscal, Triveni Turbine posted a 35.5% rise in net profit to Rs 92.4 crore against Rs 68.2 crore profit during the quarter ended December 2023. Sales rose to Rs 503.4 crore in Q3 against Rs 431.7 crore during the quarter ended December 2023.

The company logged its all-time high quarterly revenue and EBITDA along with a record closing order book. EBITDA rose 30.4% to Rs 109.3 crore in the third quarter of this fiscal over Rs 83.87 crore YoY.

Mirae Asset Sharekhan has a price target of Rs 750 on the Triveni Turbine stock.

"Order book surged 15% y-o-y to Rs. 1,819 crore, with export order book rising 55% y-o-y to Rs. 1,184 crore. Domestic order book reported a decline of 22% to Rs. 635 crore. Export order inflow stayed robust on the exports front, with strong prospects in the US and Southeast Asia. ? Global focus on renewable energy, waste-to-heat recovery, robust order book, and margin tailwinds bode well for the company. We model a revenue/PAT CAGR of 24%/29% over FY2024-FY2027E. We reiterate a Buy with a price target of Rs 750," said the brokerage.

Centrum Broking has assigned a price target of Rs 760 to the stock.

"Maintain Buy with a revised target price of Rs760 We expect 23%/26% revenue/EPS CAGR over FY24-27E. We remain optimistic considering strong growth outlook of exports and after-market services, superior financial profile (20%+ OPM, NWC at negative 10% of sales, 30%+ return ratios, capex light business model with high FCF) and market leadership (second largest globally)," said the brokerage.

The brokerage in its report said:

A. It expects to maintain robust business performance in the medium-term led by a substantial backlog of orders in Renewable, API and IPG (Industrial Power Generation) turbines, along with successful market expansions.

B. The Aftermarket business also shows promising growth prospects, bolstered by an expanding range of offerings, including spare parts, services and refurbishments,
designed to cater to a broader customer base of rotating equipment encompassing-steam turbines, gas turbines, utility turbines, and geothermal turbines.

C. Globally, demand is increasing for renewable energy, energy efficiency, waste-to-energy (WtE), and decentralized power solutions. By leveraging these opportunities domestically and globally, Triveni will maintain growth and profitability in the coming years.

About the company     

Triveni Turbine Limited is an industrial steam turbine manufacturer. The company is primarily engaged in the business of manufacturing and supplying power generating equipment and solutions and has manufacturing facilities in Bengaluru, Karnataka. Approximately 6,000 steam turbines supplied by the company are installed across 20 industries in over 75 countries, including Europe, Africa, Central and Latin America, Southeast Asian and South Asian Association for Regional Cooperation countries.