Shares of Triveni Engineering and Industries Limited (TEL) have delivered over 300 per cent return to its shareholders in the last one year. In the past one year, the share price jumped from Rs 69.25 to Rs 279.90, logging around 305 per cent return in this period.
An amount of Rs 5 lakh invested in this multibagger stock a year ago would have turned into Rs 20 lakh today.
With a market capitalisation of Rs 6,748 crore, the shares stand higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Long-term investors have made big gains by investing in this stock as it has surged over 1,290 per cent in the last ten years.
"At the current juncture in Triveni Engineering, the momentum indicators like MACD, RSI and MAs are showing a bullish trend in intraday and daily chart. Fundamental factors also support the company on healthy growth in operating profits as well as strengthening of debt protection metrics in FY2022 and FY2023. The bullish trend may continue and gain its strength further to Rs 290 levels," Dr. Ravi Singh, Vice President and Head of Research, Share India told BusinessToday.In
"With distillery capex, TEL would be able to increase its ethanol volumes 2.1x to 22 crore litre by FY24. Distillery sales will see 32.8 per cent CAGR to Rs 1285.8 crore in FY21-24E, which would be 24 per cent of total revenues," ICICI Direct said in its report.
"Sugar segment profitability would improve with surging domestic & global sugar prices. We estimate sugar realisation of | 34-37 /kg in FY22-24E. The company is expected to generate Rs 1165 crore of free cash flow in the next three years, which would be utilised for Rs 400 crore capex, debt reduction, buybacks & dividends," the brokerage firm added.
Recently, the company reported its earnings for the quarter ended December 2021. The consolidated profit of the company jumped 37 per cent to Rs 130 crore for the quarter ended December 2021 as against a net profit of Rs 94.6 crore in the year-ago quarter. The company's net sales declined 0.66 per cent to Rs 1,115.69 crore during the quarter.
"Substantial increase in sugar prices in the current quarter has helped sugar operations to maintain the profitability. In respect of distillery operations, both sales volumes and high realization prices have contributed to an increase in profitability," the company said.
About the company
Triveni Engineering and Industries Limited is a diversified industrial conglomerate having core competencies in the areas of sugar and engineering. It is one of the largest integrated sugar manufacturers in India and a market leader in its engineering businesses comprising power transmission business and water & wastewater treatment solutions.
TEIL currently has seven sugar mills in operation at Khatauli, Deoband, Sabitgarh, (all in western Uttar Pradesh), Chandanpur, Rani Nangal and Milak Narayanpur (all in central Uttar Pradesh) and Ramkola (eastern Uttar Pradesh).
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