Shares of Triveni Engineering & Industries Limited have returned over 190% to its shareholders in the past year. The share rose 8% to an intraday high of Rs 203.80 on the Bombay Stock Exchange (BSE).
Small-cap stocks surged after the company announced it had signed a 10-year commercial agreement with GEAE Technology USA to locally manufacture the base and enclosure for the LM2500 gas turbine.
“Under the agreement, GEAE Technology USA has authorized Triveni to locally manufacture the base frame, loudspeaker and lubricating oil skid for the LM2500 gas turbine, and to supply other controlled accessories to the source that go into the assembly of the LM 2500 gas turbine enclosure, “the company said. in a press release.
The LM2500 is the propellant gas turbine of choice for the Indian Navy for many of its surface combatants. The LM2500 gas turbine, with a capacity of 25 MW to 35 MW, is the best naval propulsion gas turbine in its class and is in service in more than 40 navies around the world ”, he added. .
Over the past year, the share price has risen from Rs 69 to Rs 203.8, recording a return of around 195% during that time. The script has jumped about 183% since the start of this year.
An amount of Rs 5 lakh invested in this multibagger stock a year ago would have turned into Rs 14.76 lakh today.
With a market cap of over Rs 4,800 crore, the stocks are above the 20-day, 50-day, 100-day and 200-day moving averages, but below the 5-day moving averages.
Brokerage Dolat Capital noted that the sugar business experienced headwinds at S1FY22 due to lower monthly sugar quota allocations which restricted sugar shipments (down 23.5% year-on-year. at S1FY22). However, domestic sugar prices have remained firm since August 21 thanks to favorable global and domestic factors.
Commenting on the different segments, the brokerage said the distilleries segment continued to show healthy growth, driven by a higher proportion of heavy B ethanol sales (produces 77% ethanol from heavy B molasses at T2FY22 versus 26% at T2FY21).
“The new distillery expansions – 220 KLPD (commissioning at T4FY22) and 100 KLPD (commissioning at T1FY23) will further boost overall revenue growth and profitability. In addition, business performance engineering have improved in T2FY22 with an overall economic recovery and an upturn in industrial activity, ”he said in a report.
“With new distilleries slated to come into play at T4FY22 and T1FY23, increasing its overall capacity to 660 KLPD and the sugar achievements expected to remain firm at Rs35-36 / kg, we remain positive on the stock. We advance the FY24E figures. and maintain our ‘Buy’ with a SOTP based target price of Rs 252 with an implied P / Bv of 2.1x, “he added.