Rs 119 to Rs 668: This stock turned into a multibagger in three years; approached record high today

Shares of multibagger Triveni Turbine Ltd approached their record high on Wednesday after the power equipment maker reported its Q1 earnings. The stock has delivered stellar returns of 238% in two years and risen 460% in three years. The power equipment stock, which closed at Rs 119.2 on August 6, 2021  rose to a high of Rs 668 in the current session (August 7, 2024), clocking 460% returns during the period. The parent BSE 500 index has zoomed 62% in the same period. In comparison, the benchmark Sensex has risen 46% in three years.

Triveni Turbine stock climbed 7.84% to Rs 668 in the current session on BSE. Earlier, the stock opened higher at Rs 640 against the previous close of Rs 619.40.

Total 1.02 lakh shares of the firm changed hands amounting to a turnover of Rs 6.63 crore on Wednesday. Market cap of the firm rose to Rs 20,410 crore. The stock fell to a 52-week low of Rs 311.85 on October 26, 2023 and a 52-week high of Rs 675 on June 3, 2024. 

Triveni Turbine shares have a beta of 0.8, indicating very low volatility in a year

Technicals 

In terms of technicals, the relative strength index (RSI) of Triveni Turbine stock stands at 54.6, signaling it's trading neither in the overbought and nor in the oversold zone. Triveni Turbine shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.    

Q1 shareholding 

Seven promoters held 55.84 per cent stake and 1,07,617 public shareholders owned 44.16 per cent or 14.03 crore shares in the firm for the quarter ended June 2024. Of these, 1,03,912 resident individuals held 1.16 crore shares or 3.65% stake with capital up to Rs 2 lakh. 

Q1 earnings 

In the June 2024 quarter, Triveni Turbine reported a 32% rise in net profit to Rs 80.41 crore against Rs 60.96 crore profit during the quarter ended June 2023. Sales rose to Rs 482.67 crore in Q1 against Rs 389.77 crore during the quarter ended June 2023.      

The company clocked highest ever quarterly revenue, EBITDA and order booking along with a record closing order book providing good visibility for FY25.

EBITDA climbed 36.4% year-on-year to Rs 115 crore in June 2024 quarter. EBITDA margin climbed to 24.8% in Q1 FY25 against 22.4% recorded in the corresponding quarter of last year.

PL raises price target 

Brokerage Prabhudas Lilladher has assigned a price target of Rs 719 (Rs 612 earlier) to the stock. It has upgraded its stance to buy against the hold call earlier.  

It said Q1 was a healthy one and strong outlook for the company remains intact.

“We revise our FY25/26E EPS estimates by plus 3.1%/plus 2.9% factoring in better traction in exports. Domestic order bookings were affected by the general elections, but are projected to accelerate in the coming quarters. Triveni Turbine has expanded its offerings to include turbines up to 120 MW, positioning itself to capitalise on growing demand from key sectors such as steel, cement and renewable energy. The company also aims to capture a larger share of the API turbine market. Additionally, export growth is anticipated to be driven by increased demand in the Middle East, SEA and Europe. Triveni Turbine’s continued investments in R&D are expected to further enhance growth by introducing new products with broader applicability,” said the brokerage.

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.