Stock Picks: Triveni Turbine Ltd

Triveni Turbine Ltd (TTL) is a leading manufacturer of steam turbines up to 30MW range for providing industrial and renewable power solutions. It also offers servicing, operation and maintenance of steam turbines.

Key Facts:
– Market leader in India with around 60% market share for a decade
– The domestic steam turbine market is a duopoly market
– Triveni and Siemens together command 90% market share in India
– Steam turbines are technology intensive products
– Products meet the most stringent international quality standards
– Significant entry barrier due to its technology tie-up with GE and experience
– Complex technology, high level of customization, and small market size that discourages entry of larger players
– Triveni offers high quality products at a lower price than its competitors owing to low cost manufacturing in India
– Triveni offers maintenance and support of turbines up to 300MW irrespective of the manufacturer
– Over 2500 steam turbines installed globally in more than 50 countries
– GE Triveni Ltd, a 50:50 JV between TTL and GE for turbines in the 30-100MW range
– 59% of its revenue comes from export business
– Export business grew at a CAGR of 35% in the past 5 years
– 22% of its revenue comes from maintenance and support of turbines
– The revenue from maintenance is increased from 16% in FY11 to 22% in FY16
– TTL has filed 170 patent applications in India and Abroad

Management:
– Mr. Dhruv Sawhney is the chairman of Triveni. He holds an MBA from Wharton
– Mr. Dhruv is the chairman of the India steering committee at the World Economic Forum
– Mr. Nikhil Sawhney is the vice chairman of Triveni. He holds an MBA from Wharton
– Able and honest management

Investors:
– Promoters hold 70% of the company
– Nalanda Capital holds 10.8% of the company
– Amansa Capital holds 4.5% of the company
– Mutual Funds hold close to 4.8% of the company

Stock Picks: Panasonic Energy India

Panasonic Energy India is one of the largest manufacturer and supplier of dry cell batteries and lighting products. Its products include zinc carbon batteries, alkaline batteries, flashlights and rechargeable batteries. It has 2 manufacturing plants located in Vadodara and Pitambur.

Management:
– Mr. Mikio Morikawa, Chairman and MD of Panasonic, has been associated with Panasonic since 1986.
– Mr. Mikio was heading Panasonic battery divisions in the USA, prior to joining Panasonic Energy India
– Mr. Mikio is an industrial engineer from Waseda University, Tokyo
– Consistent dividend payout
– Able and honest management

Investors:
– Promoters hold 58% of the company
– Acacia Partners owns 3.9% of the company
– Investor Mr. Vijay Kedia owns 1.2% of the company