ICICI Direct has given Buy recommendation for Triveni Engineering with a target price of Rs. 350 in its research report issued on May 17, 2022

ICICI Direct’s research report on Triveni Engineering

Triveni Engineering (TEL) is one of the largest sugar companies in India with sugar crushing capacity of 60,000 TCD, distillery capacity of 520 KLD & co-generation power of 100 MW. It also has power transmission & waste water management business contributing 10% to revenues. The company is increasing its distillery capacity from current 11 crore litre per annum to 22 crore litre per annum by FY24 to utilise B-heavy, grain & sugarcane juice route to produce ethanol.

Outlook

We maintain our BUY rating on the stock. We value the stock at Rs 350, valuing the business at 14x FY24 PE.

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