🏭 Company Overview: What Is Triveni Turbine Ltd?
Triveni Turbine Ltd (NSE: TRITURBINE) is a leading manufacturer of industrial steam turbines ranging up to 100 MW. With decades of expertise in engineering and innovation, the company plays a pivotal role in industries such as sugar, paper, textiles, steel, and renewable energy.
Although it began as a spin-off from Triveni Engineering & Industries Ltd, it has steadily scaled operations and established itself as a global turbine supplier.
📈 Key Financial Metrics (as of July 2025)
| Metric | Value |
|---|---|
| Market Cap | ₹22,238 Cr |
| Current Price | ₹668 |
| P/E Ratio | 84.4 |
| ROCE | 32.8% |
| ROE | 25.4% |
| Dividend Yield | 0.29% |
| Debt | ₹0 Cr |
| Promoter Holding | 55.8% |
✅ Strengths of Triveni Turbine Ltd
1. Debt-Free Operations
Triveni Turbine Ltd maintains a debt-free balance sheet. Therefore, it has more financial flexibility and lower interest risk.
2. High ROCE and ROE
Not only does the company post a stellar ROCE of 32.8%, but its ROE of 25.4% also reflects high capital efficiency.
3. Consistent Profit Growth
In the past five years, Triveni has delivered a 25.1% CAGR in net profits. Consequently, it has built a strong track record of reliability and performance.
4. Efficient Working Capital Cycle
The company operates with a working capital cycle of just 8 days. As a result, it frees up more cash for reinvestment and dividends.
5. Global Export Opportunities
Since global demand for decentralised power is rising, Triveni’s turbine solutions are gaining traction internationally.
⚠️ Risks and Weaknesses
1. Premium Valuation
At a P/E ratio of 84.4, the stock appears richly valued. Hence, any earnings miss could lead to a sharp correction.
2. Low Dividend Yield
Despite strong profits, the dividend yield is just 0.29%. Therefore, the stock might not suit income-focused investors.
3. Cyclical Nature of Business
Because it serves capital-intensive industries, Triveni’s business depends on broader investment cycles in sectors like textiles, sugar, and metals.
📊 Annual Performance Snapshot (FY20–FY24)
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) | ROCE (%) | Net Margin (%) |
|---|---|---|---|---|---|
| FY20 | 734 | 143 | 4.4 | 20.5% | 19.5% |
| FY21 | 710 | 130 | 4.0 | 21.3% | 18.3% |
| FY22 | 932 | 167 | 5.1 | 25.4% | 17.9% |
| FY23 | 1,206 | 193 | 5.9 | 28.2% | 16.0% |
| FY24 | 1,376 | 263 | 8.0 | 32.8% | 19.1% |
Clearly, the numbers reflect steady growth in sales, margins, and return ratios.
🔍 Peer Comparison
| Company | Sales (₹ Cr) | ROCE (%) | P/E Ratio |
|---|---|---|---|
| Triveni Turbine | 1,376 | 32.8 | 84.4 |
| BHEL | 26,595 | 4.2 | 83.9 |
| Siemens India | 17,701 | 25.6 | 79.7 |
| GE Power India | 3,351 | 15.5 | 40.5 |
Compared to peers, Triveni outperforms in ROCE and profitability — albeit at a premium.
📈 Stock Performance & Technical View
In the last 12 months, Triveni Turbine Ltd has demonstrated resilience. It has also rebounded above its 200-Day Moving Average (DMA), which suggests renewed investor confidence.
Although short-term volatility is expected, the long-term trend appears structurally positive.
📉 Valuation Outlook
While Triveni is fundamentally solid, its premium valuation calls for caution. Therefore:
- Long-term investors may wait for corrections.
- Alternatively, consider accumulating in phases through SIPs.
🗳️ Shareholding Pattern (June 2025)
| Type | Holding % |
|---|---|
| Promoters | 55.8% |
| FIIs | 18.5% |
| DIIs | 6.2% |
| Public | 19.5% |
Since promoter holding is stable and FII interest is rising, investor confidence remains intact.
📌 Final Verdict: Should You Invest?
Triveni Turbine Ltd is an exceptional business with:
- Zero debt
- High capital efficiency
- Consistent earnings growth
- Global expansion potential
Nevertheless, high valuations mean you should enter strategically — preferably during dips or corrections.
⚠️ Disclaimer: I am not a SEBI-registered advisor. This article is for informational purposes only. Please consult a registered investment advisor before making financial decisions.
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