Profit Sheets

TEIL shares soars 6%, hits new high on healthy business outlook

January 19, 2022 04:18 PM

Triveni Engineering & Industries
In the past one month, the stock had gained 21 per cent, as against a 6 per cent rise in the benchmark index.

Shares of Triveni Engineering & Industries (TEIL) hit a new high of Rs 269.35, on soaring 6 per cent on the BSE in Wednesday’s intra-day trade on expectations of a healthy growth in operating profits as well as strengthening of debt protection metrics in FY2022 and FY2023.

The stock surpassed its previous high of Rs 267.25 hit on Monday, January 17, 2022. At 10:25 am; the stock was up 5.5 per cent at Rs 267.50, as compared to 0.70 per cent decline in the S&P BSE Sensex.

In the past one month, the stock had gained 21 per cent, as against a 6 per cent rise in the benchmark index.

TEIL on Tuesday informed that the rating agency ICRA reaffirmed the ratings for existing bank facilities & enhanced commercial paper limit of the company. The outlook on the long term rating is stable.

ICRA expects the company’s revenues in FY22 to remain stagnant, notwithstanding higher revenues from the distillery division, offset by lower sugar volumes (both domestic and exports). Further, higher sucrose diversion towards B-heavy molasses/juice-based ethanol would moderate the inventory levels and hence lower its working capital borrowing levels going forward.

Also Read : Triveni Engineering Q1 profit up 10.20% at Rs 92.30 crore

Additionally, TEIL has forayed into production of country liquor in FY21, thus, further facilitating forward integration.

Moreover, TEIL’s grain-based distillery of 60 kilo liters per day (KLPD) is expected to commence its operations in Q4FY2022, which is likely to strengthen its operational profile and improve revenue diversification.

Further, ICRA notes that the introduction of the minimum support price (MSP) for sugar in FY2019 gives some protection against any downside in the operating profits in sugar surplus years compared to the past.

Over the medium term, TEIL’s operating profits are likely to be less volatile than the historical levels, driven by the expected continuation of MSP and the industry’s focus on diverting of excess cane towards ethanol production.

Leave a comment

Your email address will not be published. Required fields are marked *

Market Live Updates


Intraday Tips
Stock Name Open Price Trend Details
Reliance 1930.10 Buy  Click Here
Asian Paints 2577.00 Buy  Click Here
HDFC 2448.00 Buy  Click Here
HDFCAMC 2790.00 Buy  Click Here
TCS 3120.00 Buy  Click Here


NSE Top Gainers/Losers
COMPANY LTP %CHNG VOLUME
ITC 253.75 1.83 1,26,68,576
M&M 807.10 1.73 48,32,584
JSWSTEEL 728.65 1.55 42,75,780
TATACONSUM 776.30 1.36 21,46,724
HINDUNILVR 2,043.00 1.34 16,38,568
COMPANY LTP %CHNG VOLUME
HINDALCO 569.90 -4.98 1,67,38,310
DIVISLAB 4,431.15 -2.37 3,48,495
APOLLOHOSP 4,525.45 -1.94 8,77,622
RELIANCE 2,634.00 -1.46 33,99,115
CIPLA 1,014.65 -1.39 12,17,592