Multibagger Alert: This steam turbine manufacturer has given returns of 117.32% in the past year!

Multibagger Alert: This steam turbine manufacturer has given returns of 117.32% in the past year!

by 5paisa Research Team Last Updated: Dec 13, 2022 - 07:37 am 42.8k Views
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On a YTD basis, the stock has given a return of 128.11%.

Triveni Turbine, a market leader in the up to 30 MW steam turbine segment has turned multibagger and has given investors stellar returns of 117.32% over the last year. The share price stood at Rs 181.35 on December 20, 2020, and since then, the stock has more than doubled investor wealth.

The company designs and manufactures steam turbines up to 100 MW and delivers robust, reliable, and efficient end-to-end solutions. The company’s steam turbines are used in diverse industries, ranging from sugar, steel, textiles, chemical, pulp and paper, petrochemicals, fertilisers, solvent extraction, metals, palm oil to food processing and more.

Triveni Turbine reported Q2FY22 numbers which were broadly in line with the street expectations. Consolidated revenue increased 11.4% YoY to Rs 206 crore while operating margins contracted 741 bps QoQ to 19.3% on the back of a higher share of domestic revenues and a rise in raw material costs. As a result, PBIDT (Ex OI) came in at Rs 39.92 crore, down 19.45% from Rs 49.56 crore in the same quarter for the previous fiscal year. The bottom line of the company stood at Rs 178.39 crore during Q2FY22 as compared to Rs 23.11 crore in Q2FY21. The sharp increase in PAT was due to the booking of a one-time exceptional net income of Rs 198 crore on account of a settlement agreement pertaining to Triveni Energy Solutions.

The overall order booking was highest in the last four years. Order booking rose 74% YoY to Rs 307 crore aided by the domestic segment which grew by 81% YoY to Rs 225 crore, whereas the total order book stood at Rs 828 crore, up 24% YoY and 14% QoQ. The management remains optimistic on strong order booking to continue during H2FY22.

The company has a strong aftermarket segment and overseas business, while the domestic market is showing distinct signs of a pickup. The demand for steam turbines is robust as the manufacturing sector in India is on a growth trajectory and industries such as sugar, steel, cement, and pulp and paper segment are expected to increase production. Thus the growth prospects of the company remain positive.

At 3 pm on Tuesday, the stock of Triveni Turbine Limited was trading at Rs 179.80, down by 0.85% or Rs 1.55 per share on BSE. The 52-week high of the scrip is recorded at Rs 229 and the 52-week low at Rs 74 on the BSE.

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