17th March, 2022

INVESTMENT
IDEAS
TRIVENI TRUBINE LIMITED CMP: 187.50 Target Price: 225 Upside: 20%

VALUE PARAMETERS Investment Rationale:

Ÿ Triveni Turbines designs and manufactures steam turbines at its
Face Value (Rs.) 1.00
manufacturing facilities in Bengaluru. It is a leading industrial steam turbine
52 Week High/Low 231.25/96.00
manufacturer, with a dominant market share of over 60% in India. Over
M.Cap (Rs. in Cr.) 6061.98
5,000 steam turbines supplied by Triveni have been installed across 18
EPS (Rs.) 3.69
industries in over 70 countries, including Europe, Africa, Central & Latin
P/E Ratio (times) 50.81
America, SE Asian and SAARC countries.
P/B Ratio (times) 7.39
Ÿ Total consolidated outstanding order book stood at Rs.924 crore as on
Dividend Yield (%) 0.66
December 31, 2021 which is higher by 12% when compared to previous
Stock Exchange BSE
quarter and 42% higher than the previous year. Domestic order book stood
at Rs. 505 crore and the export order book stood at Rs. 419 crore.

SHAREHOLDING PATTERN Ÿ During Q3FY2022, Company achieved its highest order booking of Rs. 321

3.08 corre in the last four years, up 105% against Rs. 156 crore same period last

16.23
year. Export order booking mainly in the product segment contributed to
Foreign this growth.
Ins tu ons
12.65
Non Promoter Corporate Holding Ÿ Enquiry generation during Q3 FY 22 remains strong in domestic and
Public & Others
0.25 international market on a year-on-year basis. The enquiry generation in the
67.78
domestic market grew by 23% and 68% in the international market. The
management expects this would support order booking in the coming
quarters as well.

P/B CHART Ÿ During the quarter ending December 2021, the revenue for the Company
grew 29.8% YoY to Rs. 225 crore driven by domestic sales which grew 64%
400.00
350.00 YoY to Rs. 162 crore. The revenue contribution from domestics and export
300.00
market stood 72% and 28% respectively. The EBITDA increased by 33.2%
250.00
200.00 YoY to Rs. 53.4 crore on improved EBITDA margins, which increased by ~63
150.00
bps YoY to 23.7%.
100.00
50.00 Ÿ The company is virtually debt-free with a limited capex requirement and an
0.00
efficient working capital cycle, reflected in very healthy return ratios.
4-Jan-18

3-Jun-21
13-Jul-17

7-Dec-20

30-Jul-21
11-Sep-17

29-Jun-18

24-Jun-19

18-Jun-20

21-Jan-22
28-Aug-18

27-Dec-18

28-Sep-21
21-Aug-19

20-Dec-19

13-Aug-20

3-Feb-21
21-Feb-19

14-Feb-20
8-Nov-17

9-Oct-20

5-Apr-21
6-Mar-18

29-Oct-18

24-Apr-19

23-Oct-19

21-Apr-20

26-Nov-21
17-Mar-17

4-May-18
17-May-17

Ÿ The company has been focusing on digitisation and has been connecting
4.00 7.00 10.00 13.00 Close Price with its customers in a better way both in domestic and international
markets.

Risk
FINANCIAL PERFORMANCE (Rs.in Cr.)
Ÿ Economic Slowdown
ACTUAL FORECAST
Ÿ Intense competition
FY Mar-21 FY Mar-22 FY Mar-23
Revenue 702.58 901.69 1110.91 Valuation
The company has been securing orders both from India and major international
Ebitda 147.61 181.61 241.68
markets. The Management has also mentioned that enquiry levels remained
Ebit 127.40 165.90 221.95
healthy both in domestic and exports market and it is confident that the order
Net Income 102.46 180.82 188.85
booking momentum will continue in the coming quarters which will aid sustained
EPS 3.17 4.29 5.77 growth for the Company. Thus, it is expected that the stock will see a price target of
BVPS 19.72 27.90 32.10 Rs.225 in 8 to 10 months’ time frame on a target P/Bv of 7x and FY23 BVPS of
RoE 17.55% 16.81% 20.74% Rs.32.10.
Source: Company's Website, Reuters & Capitaline
KARUR VYSYA BANK LIMITED CMP: 46.85 Target Price: 57 Upside: 22%

VALUE PARAMETERS Investment Rationale:

Ÿ Total business of the bank stood at Rs 1, 22,664 crore, registering a Y-o-Y
Face Value (Rs.) 2.00
growth of 7.4% (Rs 8,462 crore) from Rs 1,14,202 crore. Total deposits grew
52 Week High/Low 61.35/38.40
to Rs 66,871 crore, up from Rs. 62,089 crore. CASA share was up at 36% from
M.Cap (Rs. in Cr.) 3748.01
35% a year ago. CASA deposits grew 12.2% on a Y-o-Y basis to Rs.24,128
EPS (Rs.) 7.05
crore.
P/E Ratio (times) 6.65
Ÿ Gross advances rose 7.1% YoY (Rs 3,680 crore) and stood at Rs 55,793 crore,
P/B Ratio (times) 0.52
against Rs 52,113 crore a year ago. KVB in a release said improved offtake by
Dividend Yield (%) 1.07
retail and business segment clientele, as well as a robust jewel loan portfolio,
Stock Exchange BSE
aided the credit growth. The jewel loan portfolio registered a Y-o-Y growth of
Rs 1,649 crore (13.7%) to Rs 13,718 crore.
Ÿ Net Interest Income (NII) of the bank improved to Rs.687 crore from Rs.584
SHAREHOLDING PATTERN
crore and it has reported a fivefold increase in its profit for the third quarter

16.61 ended December 31, 2021 to Rs 185 crore from Rs 35 crore during the same

Foreign
period last year. Net interest margin stood at 3.68%. Non-interest income
Ins tu ons
Non Promoter Corporate Holding
(excluding treasury profit) improved to Rs 209 crore, compared with Rs 197
21.32
55.77 Promoters
Public & Others crore.
Ÿ The bank has exhibited an improvement in the asset quality with the higher
4.03
2.29 recoveries and upgradation of NPAs in Q3FY2022. Gross NPAs declined to
6.97% from 7.37%, while Net NPA stood at Rs 1,356 crore at 2.55%,
retaining the rate of the year-ago period. Furthermore, a large portion of its
P/B CHART
advances are working capital loans i.e. cash credit, overdraft and loans
200.00
180.00 repayable on demand (78%), given to sole proprietorship and partnership
160.00
140.00 firms with higher yields
120.00
100.00 Ÿ The provision coverage ratio improved in the December quarter to 78.81%
80.00
from 77.35%. Basel III CRAR stood at 18.79% (with CET1 ratio of 16.76%),
60.00
40.00 up from 18.52%.
20.00
0.00 Ÿ The bank has been able to conserve capital, with its Capital Adequacy Ratio
3-Jun-19
19-Jul-17

23-Jul-18

1-Aug-19

9-Dec-19

9-Dec-20
18-Jan-18

28-Jan-19
19-Sep-17

25-Sep-18

12-Jun-20

15-Jun-21
5-Feb-20

11-Aug-20

9-Feb-21

13-Aug-21

16-Dec-21
7-Oct-19

9-Apr-20

9-Oct-20

15-Feb-22
13-Apr-21

14-Oct-21
20-Nov-17

28-Nov-18
17-Mar-17

22-Mar-18

29-Mar-19
19-May-17

24-May-18

at a comfortable 19%.
Ÿ The branch had a branch network of 780 and an ATM and cash recyclers
0.40 0.90 1.40 1.90 Close Price
network of 2236 as on 31 March 2021.

Risk
FINANCIAL PERFORMANCE (Rs.in Cr.)
Ÿ Unidentified Asset Slippages.
ACTUAL FORECAST Ÿ Regulatory Provisioning on assets and Corporate Governance issue
FY Mar-21 FY Mar-22 FY Mar-23
Valuation
NII 2359.51 2701.62 3010.80
The bank has exhibited healthy improvement in operating efficiency driven by a
Ebit 1429.33 1625.57 1862.11
top-line growth. The business growth of the bank is as per the industry and every
Pre-tax Profit 548.26 858.65 1135.61 segment is showing good growth. Thus, it is expected that the stock will see a price
Net Income 359.39 638.66 800.93 target of Rs.57 in 8 to 10 months’ time frame on a 3 year’s average P/BVx of 0.57x
EPS 4.50 8.00 10.00 and FY23 BVPS (Book Value per Share) of Rs.99.88.

BVPS 87.07 90.70 99.88

RoE 5.30% 8.83% 10.21%
Source: Company's Website, Reuters & Capitaline
Above calls are published in “Wise Money Issue No. 832”
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