Good Buy with exceptional outlook and strong performance Triveni Turbine Limited (TTL) is a leading steam turbines manufacturer with a global footprint spanning over 50 countries in Europe, Africa, Central & Latin America, SE Asia and SAARC countries TTL find applications in a wide range of industries such as Sugar, Steel, Pulp & Paper, Textiles, Chemical, Palm Oil, Food Processing etc. The turbines are used in multiple applications like Co-generation, Combined Heat & Power Generation, Waste to Energy, Captive Power Generation and Independent Power Generation.Company has reduced debt and almost it’s debt free.Company has a good ROE track of 78% for last 5 yearsCompany has been maintaining a healthy dividend payout of 33.83%Company has reported a healthy YoY rise in revenue and exceptional export order.Domestic revenue has reduced quite significantly, but overall outlook is better considering the fact that there is an increase in order flow from international market.In the annual report of 2015-16, company has reported 22% growth in total consolidated income, 19% growth in consolidated profit after tax, 21% growth in consolidated order booking and 49% growth in consolidated exports order booking.The Company has started gaining momentum in the export market over the past couple of years. FY 16 has been an excellent year for the international business, with product order booking of ` 4 billion – a strong growth of 61%. The major segments of exports are from renewable, including waste to energy in Europe and for other markets it has been a mix of segments such as sugar, paper, apart from renewable etc. The foray into new markets in Latin America, Africa and certain European markets, with potential to enter into CIS, North & West Africa etc., should support the Company’s further growth in the export market. The Company has a good pipeline of enquiries from over 100 countries, which are spread across process co-generation 43%; sugar co-generation 25%; IPPs 12% and metals 20%.
Considering the past robust formance one can accumulate this stock in staggered manner @CMP – 123/- with a target of 160/- in next 8 to 12 months.