🔍 At a Glance
Triveni Turbine is India’s largest industrial steam turbine manufacturer (up to 100 MW). Over the last 5 years, it has quietly compounded PAT at 25% CAGR, ROCE now stands at 44%, and it boasts a healthy ₹19,000 Cr market cap. But with a 54x P/E, is this steam-powered rally running on fumes?
1. 🎣 Introduction with Hook
Some companies make headlines.
Others just quietly compound like a CA with no Instagram.
Triveni Turbine belongs to the second category.
This smallcap (now almost midcap) company makes steam turbines — the old-school stuff that powers everything from sugar factories and cement kilns to waste-to-energy projects and paper mills.
And while your portfolio was busy getting whiplash from Zomato and Paytm, Triveni simply tripled in 3 years.
Let’s decode how.
2. 🏭 Business Model – WTF Do They Even Do?
🔧 Core Offerings:
- Steam Turbines (Up to 100 MW): Industrial, captive power, renewable
- Aftermarket Services: High-margin AMC and retrofit biz
- Export Orders: 33%+ revenue from global markets
🌍 Key Sectors Served:
- Biomass & WtE 🔥
- Petrochemicals 🧪
- Cement & Steel 🏗️
- Textile & Pulp 🧻
- Geothermal, WHR ♻️
It’s a classic picks-and-shovels play in the industrial energy space — they don’t sell power, they sell what helps you make power.
🧠 Fun Fact: Triveni was once part of Triveni Engineering (sugar biz). It demerged in 2010, and now runs as a lean turbine machine.
3. 📊 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY21 | FY23 | FY25 |
|---|---|---|---|
| Revenue | ₹703 Cr | ₹1,248 Cr | ₹2,006 Cr |
| Net Profit | ₹102 Cr | ₹193 Cr | ₹359 Cr |
| OPM | 21% | 19% | 22% |
| ROE | 32% | 28% | 33% |
| ROCE | 25% | 29% | 44% |
🔼 Growth Rates:
- 5-Year Sales CAGR: 20%
- 5-Year PAT CAGR: 25%
- 3-Year PAT CAGR: 46%
Margins have held firm despite inflation. The moat? Customization + strong service biz + export thrust.
4. 💸 Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| CMP | ₹607 |
| P/E (TTM) | 54x |
| P/B | 15.8x |
| Market Cap | ₹19,276 Cr |
| Dividend Yield | 0.43% |
Triveni trades like a high-growth tech company in a steel furnace suit.
📏 Fair Value Range (Based on PEG of 1.5x and 20–25% CAGR):
₹400 – ₹480 (implied P/E of 35–42x)
At ₹600+, it’s a full-throttle growth premium.
5. 🚨 What’s Cooking – News, Triggers, Drama
🔥 Recent Developments:
- 🏭 ₹165 Cr capex to expand capacity
- 📦 ₹1,910 Cr order book in FY25 – 20% YoY growth
- 🌏 Exports to 80+ countries — strong growth in WtE and WHR
- 🧼 Aftermarket services gaining traction, more than 20% of revenue
🚩 Promoter holding dropped from 67.8% (2022) to 55.8% (now). No red flags yet, but something to watch.
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Total Assets | ₹2,019 Cr |
| Net Worth | ₹1,217 Cr |
| Total Borrowings | ₹39 Cr |
| Investments | ₹348 Cr |
✅ Almost debt-free
✅ High reserves
✅ Capex funded from internal accruals
The company keeps it clean. No flashy acquisitions. No leverage joyrides.
7. 🧮 Cash Flow – Sab Number Game Hai
| FY | CFO | Capex | FCF |
|---|---|---|---|
| FY23 | ₹196 Cr | ₹40 Cr | ~₹156 Cr |
| FY24 | ₹271 Cr | ₹60 Cr | ~₹211 Cr |
| FY25 | ₹187 Cr | ₹45 Cr | ~₹142 Cr |
Free cash flow positive for 12 straight years. Even while doubling sales.
8. 📐 Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROCE | 44% |
| ROE | 33% |
| OPM | 22% |
| Cash Conversion Cycle | 12 days |
| Working Capital Days | 107 (⚠️) |
⚠️ Spike in WC days is a mild concern. Debtor days rose to 66 from ~40.
But overall, ratios scream capital efficiency.
9. 📈 P&L Breakdown – Show Me the Money
FY25 Snapshot:
- Revenue: ₹2,006 Cr
- EBITDA: ₹437 Cr
- Net Profit: ₹359 Cr
- EPS: ₹11.24
- Dividend Payout: 36% (~₹130 Cr)
Despite the rising base, earnings still growing ~30% YoY. And there’s no other listed pure-play turbine company in this space.
10. 🔍 Miscellaneous – Shareholding, Promoters, etc.
| Shareholder | Stake (Mar 2025) |
|---|---|
| Promoters | 55.84% |
| FIIs | 28.00% |
| DIIs | 10.63% |
| Public | 5.52% |
🕵️ Observations:
- FIIs love it — from 17% to 28% in 2 years
- Public shareholding still low
- No pledging, no insider drama
Triveni behaves like a blue-chip… in smallcap clothes.
11. 🧠 EduInvesting Verdict™
Steam is boring. Until it compounds wealth.
Triveni isn’t a flashy story — no EV hype, no PLI noise, no startup DNA. Just decades of engineering + new-age export tailwinds + aftermarket money.
But the market already knows that.
At 54x earnings, you’re paying for a turbine that better spin forever.
🧾 Final Word:
✅ Great biz, zero debt, consistent execution
🚫 But current valuation assumes no misfire for the next 3 years
If you’re getting in now, know this:
You’re not early. You’re part of the victory parade. Just don’t overpay for the band.
✍️ Written by Prashant | 📅 June 28, 2025
Tags: Triveni Turbine, steam turbine stocks, industrial power stocks, export engineering, multibagger, ROCE stocks, capital goods, waste to energy, midcap stocks, EduInvesting
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