Buy Triveni Turbine, target price Rs 91: Emkay Global

Emkay Global has given a buy rating to Triveni Turbine with a target price of Rs 91. The share price moved up by 5.67 per cent from its previous close of Rs 68.75. The stock’s last traded price is Rs 72.65.

Triveni Turbine Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 2327.80 Crore) operating in Engineering sector.

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 185.32 Crore, up 12.20 % from last quarter Sales of Rs 165.17 Crore and down -25.07 % from last year same quarter Sales of Rs 247.33 Crore Company reported net profit after tax of Rs 23.11 Crore in latest quarter.

Investment Rationale
The brokerage raises FY21-22E EPS by 1-3% on minor model tweaks, while the core thesis on the stock remains intact. It continues to maintain Buy on TRIV with a revised TP of Rs91 for its inexpensive valuations in the context of a strong balance sheet, return ratios and FCF generation despite the slowdown.

Promoter/FII Holdings
Promoters held 67.8 per cent stake in the company as of Sept 30, 2020, while FIIs held 12.3 per cent, DIIs 15.2 per cent and public and others 4.7 per cent.