Why Triveni Turbine Share Price is Falling

The capital goods industry witnessed robust order inflow momentum in 2022, fueled by government and private spending.

On the back of this heavy lifting, shares of engineering companies saw a rise.

While the engineering sector is experiencing a boom, shares of Triveni Turbine, a leading industrial steam turbine manufacturer, have fallen 14% in a month.

Here is what caused the stock to decline.

Profit booking post buyback

Shares of Triveni Turbine saw a steep rally in 2022.

This rally got further fueled by the Rs 1.9 bn share buyback plan to purchase 5.4m equity shares at Rs 350 per share on 23 December 2022.

These factors drove the price to earnings (PE) multiple of Triveni Turbine to 64.9x. This is higher than the engineering industry PE multiple of 26.2x, making it overvalued on the PE front.

Post the buyback, the share price has been falling. Therefore, the recent correction could be due to profit booking in the stock.

Weak quarterly results

For the September 2022 quarter, the company reported a 41.9% YoY increase in revenue to Rs 2.9 bn. The rise was due to the higher demand for steam turbine machines.

However, due to a rise in input costs and other expenses, the net profit of the company declined by 73.4% YoY to Rs 463.2 m.

The company is currently undertaking capital expansion and gearing up its supply chain and sales network to drive future growth.

It is focused on growing its core competency in steam turbine manufacturing up to 100 MW.

How Triveni Turbine shares have performed recently

Triveni Turbine shares have declined by more than 14% in the last month. Over the year, the stock is up more than 32%.

The company touched its 52-week high of Rs 309.4 on 15 December 2022 and its 52-week low of Rs 146.7 on 17 June 2022.

About Triveni Turbine

Triveni Turbine is a leading industrial steam turbine manufacturer with a dominant market share of over 60% in India.

Over 5,000 steam turbines supplied by Triveni have been installed across 18 industries in over 75 countries, including Europe, Africa, Central & Latin America, SE Asia, and SAARC countries.

It is a leading original equipment manufacturer of steam turbines in the sub 30 MWe range. They are used for power generation in sugar, steel, pulp and paper, textiles, and many other industries.

Triveni's joint venture with GE Oil and Gas manufactures and supplies steam turbines above 30 MWe to 100 MWe capacity.

For more details about the company, see the Triveni Turbine company fact sheet and quarterly results on our website.

You can also compare Page Industries with its peers:

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