🟢 At a Glance
Triveni Turbine is India’s own steam-powered silent killer. With 33% CAGR profit growth, 6,000+ turbines in 80 countries, and 44% ROCE, it’s quietly building energy infrastructure while most investors are busy tracking EV stocks. But at 53x earnings, are we overpaying for steam?
🏭 About the Company
Born as a division of Triveni Engineering & Industries in the 1970s, Triveni Turbine Ltd (TTL) became an independent entity in October 2010. And since then, it has been quietly dominating the sub-100 MW turbine space — a niche that nobody cares about until the lights go off.
🎯 Core Business:
TTL designs, manufactures, and services industrial steam turbines up to 100 MW. Its machines power:
- Cement
- Steel
- Biomass & Waste-to-Energy
- Petrochemicals
- Pulp & Paper
- Textile plants
- And every dusty industrial corner you’ve never thought about
They also maintain third-party turbines and run a global aftermarket ops team that probably works harder than most politicians.
⚙️ Product Segments & Revenue Mix
| Segment | Description | % Revenue (9MFY25) |
|---|---|---|
| Product Business | Turbine manufacturing, domestic & export | 66% |
| Aftermarket Business | Services, refurbishing, LTSA | 34% |
📦 Installed Base: 6,000+ steam turbines in 80+ countries
🛠️ Order Book (as of 9MFY25): ₹1,800 Cr
🌍 Export Share: 47% — this company ships turbines more than India ships movies
🧠 Key Managerial Personnel (KMP)
- Nikhil Sawhney – Managing Director & Vice Chairman
(Legacy of Triveni Engineering family. Harvard, Wharton pedigree. Been leading the charge post-demerger.) - Amitabh Sahai – CEO
(Ex-BHEL and Siemens background. Driving international scale and aftermarket business expansion.) - S K Khurana – CFO
(Old-school finance brain. Ensures turbines spin while numbers stay sharp.)
📊 Financials Snapshot (Consolidated)
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 703 | 852 | 1,248 | 1,654 | 2,006 |
| EBITDA (₹ Cr) | 149 | 161 | 235 | 321 | 437 |
| Net Profit (₹ Cr) | 102 | 270 | 193 | 269 | 359 |
| EPS (₹) | 3.17 | 8.36 | 6.06 | 8.47 | 11.24 |
| ROCE % | 25% | 21% | 29% | 38% | 44% |
| ROE % | 24% | 28% | 33% | — | 33% |
| Dividend Payout | 38% | 23% | 0% | 43% | 36% |
📈 5-Year CAGR
- Revenue: 24.3%
- PAT: 31.2%
- Stock Price: 56% CAGR (from ₹115 to ₹601)
💰 Debt: Negligible. Still debt-light despite ₹165 Cr capex this year.
🚀 Growth Triggers
- 🧰 Aftermarket = Cash Cow
34% of revenue, 50%+ margins, recurring annuity-type model - 🌐 Global Footprint
Strong aftermarket presence in UK, UAE, South Africa, USA. Local offices = faster sales/service cycles. - 🌱 Energy Transition Tech
Investing ₹290 Cr in a CO₂-based Long Duration Energy Storage (LDES) solution with NTPC at Kudgi. - 🏗️ API-Compliant Turbines
Pushing into oil & gas and chemical sectors with API-certified high-efficiency steam turbines - 📦 IPR Edge
374 patents (India + Global) — IP monetization could come next
📉 Risks & Red Flags
🔻 Valuation: 53x PE — priced for perfection
📉 Working Capital Days: Shot up from -39 to +107
📉 Debtor Days: Jumped from 39 to 66 — clients taking their sweet time
📉 Promoter Holding: Dropped from 68% to 55.8% over 3 years
📦 Export Dependency: 47% from exports — global slowdown = pain
⚖️ Fair Value Estimate 🔍
Assume FY26 PAT = ₹440 Cr (22% growth)
Apply a fair multiple = 30–35x
🎯 Market Cap Range = ₹13,200 Cr – ₹15,400 Cr
Shares Outstanding ≈ 32 Cr
🧮 Fair Value Range = ₹412 – ₹481
💡 CMP = ₹601 = 53x TTM PE
So… it’s already ahead of fundamentals
📌 EduInvesting Take
Triveni Turbine is the NSE’s version of a silent, capital-efficient compounding beast. It doesn’t make noise, it makes margins.
🟢 44% ROCE
🟢 Near 100% cash conversion
🟢 IPs, exports, storage tech — all green flags
🟢 Zero debt, high moat, strong brand recall in B2B energy world
But the market knows it too well — and has priced it like a luxury stock. A ₹481 business trading at ₹601?
You’re paying for FY27 earnings today — that’s fine, but don’t expect multibagger returns from here unless NTPC-level orders start pouring every quarter.
🧠 Final Word
This stock is like a Maruti diesel — not sexy, not EV, but it just keeps running. And quietly pulls ahead of Teslas in real-world fuel economy.
If Triveni gets the LDES + API turbine combo right, it’ll unlock the next ₹1,000 Cr in PAT in 3 years.
But for now — buy only if you want steady compounding. Not fireworks.
✍️ Written by Prashant | 📅 June 16, 2025
Tags: triveni turbine, power sector stocks, turbine manufacturers india, aftermarket cash cow, triveni recap, high roce stock, ldes storage india, industrial energy multibaggers
