Power Boom Drives Triveni Turbine’s Growth

India's shift to renewable energy and industrial growth has propelled Triveni Turbine Ltd. into a ₹21,000 crore powerhouse—with its stock soaring 100% in the past year.

What they do: Triveni designs and supplies steam turbines that convert thermal energy into mechanical energy to drive generators in manufacturing facilities.

• Their turbines, ranging from 1 MW to 100 MW, serve a wide range of industries—from sugar and cement to chemicals and waste-to-energy.

Driving the news: Triveni's FY24 results highlight impressive growth– with revenues growing over 32% YoY, with ₹1,654 crores in sales. Exports and aftermarket services form a growing mix, which is key to reducing reliance on new turbine sales and adds recurring revenue streams.

• Exports contribute 45% of revenue, up from 30%, signaling successful global expansion.
• Aftermarket services, which include turbine maintenance and spare parts, grew to 33% of revenue.

Profitability also remains impressive—with 20% operating margins and over 16% profit margins.

Planning for future: The company's R&D has evolved as energy needs evolve globally, with nearly 338 IPRs filed, which highlights a commitment to maintaining edge in the rapidly changing energy landscape.

Yes, but: A recent reduction in promoter holding from 67.78% to 55.84% is impacting market perception. Promoters across India have been selling widely, leveraging India's booming stock markets to liquidate holdings.

What matters: Triveni's ability to leverage its expanded manufacturing capacity (now 250-300 machines annually) and capitalize on its strong order book will be critical to maintain its leadership and market share.

Zoom out: while Triveni Turbine's diversified strategy and strong financials position it well for growth, its high P/E ratio suggests much of this potential may already be priced in.