Please refer to important disclosures at the end of this report
1
Triveni Turbine Ltd. (TTL) is a leading industrial steam turbine manufacturer in
India. TTL continues to focus on expanding its service network outside India, not
only to support its existing installations, but also to attract more product business.
Management is confident of multiplying its export revenues over the longer term,
though not in a linear manner. As per management, its repeat order base is
~95%, primarily on account of its efficient aftermarket services. While the
products markets have been relatively slowing down across various geographies,
the company has made rapid strides in the aftermarket segment across Europe,
Middle-East and South East Asia. TTL is in the process of adding a second facilit
y
in Bengaluru and would be spending ~`200cr. in creating additional capacities
of ~2.5GW. The order backlog of ~`630cr ensures revenue visibility for the
coming year. Management does not expect any recovery in the domestic markets
for the next couple of quarters. The company has marked its entry in the
overseas oil and gas segment were TTL has bagged orders for 8Nos of 8M
W
drive turbines (API grade) from Kuwait National Petroleum Company. The -
Company has reduced debt and is virtually debt free. The company has a good
return on equity (ROE) of 41.4% for the last 3years and has been maintaining a
healthy dividend payout of 33.8%. Going forward, the ability of the company to
sustain its order booking in the international market will help it to achieve strong
top-line growth which will penetrate to the bottom line as the company continues
to remain debt free. Any revival in the domestic markets will give additional fillip
to the company’s earnings. Hence Buy.
BUY
CMP `124
Stock Info
Sector
Beta
Bloomberg Code
Shareholding Pattern (%)
Promoters 67.7
MF / Banks / Indian Fls 6.2
FII / NRIs / OCBs 20.7
Indian Public / Others 5.4
Abs. (%) 3m 1yr 3yr
Sensex 11.9 20.1 35.8
Triveni Turbine 5.8 29.2 102.6
.
52 Week High / Low 135/92
Avg. Daily Volume 58,207
Capital Goods
Market Cap (
`
cr) 4,148
1
BSE Sensex 29,649
Nifty 9,160
Face Value (
`
)
Reuters Code TRVT.BO
0.5
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Triveni Turbine
Others | Capital Goods
March 18, 2017
Triveni Turbine | Capital Goods
March 18, 2017
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Triveni Turbine
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Rating
s
(Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment
p
eriod
)
: Reduce
(
-5% to -15%
)
Sell
< -15
)