TRITURBINE - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 20 Dec 25, 11:16 pm

Fundamental Rating: 4.4

📊 Financials: Triveni Turbine (TRITURBINE) demonstrates excellent fundamentals with ROCE at 47.6% and ROE at 36.5%, reflecting highly efficient capital utilization. Debt-to-equity is 0.00, indicating a debt-free balance sheet. Quarterly PAT improved (₹95.5 Cr vs ₹67.0 Cr), showing earnings growth of 6.11%. EPS stands at ₹11.9, supporting strong profitability momentum.

💰 Valuation: Current P/E of 48.1 is slightly above the industry average of 43.9, suggesting premium valuation. Book value is ₹35.1, giving a P/B ratio of ~15.1, which is high. PEG ratio of 0.99 indicates growth is fairly priced. Dividend yield at 0.77% provides modest income support.

🏢 Business Model & Advantage: Triveni Turbine operates in industrial turbines and power generation equipment, with strengths in small-to-medium steam turbines. Competitive advantage lies in technological expertise, global presence, and debt-free operations. Strong return metrics and consistent profitability enhance resilience.

📈 Entry Zone: Current RSI at 43.7 suggests neutral conditions. An attractive entry zone lies between ₹480–₹510, closer to support levels and below DMA 50 & DMA 200, offering margin of safety.

🕰️ Long-Term Holding: Highly suitable for long-term investors due to strong fundamentals, debt-free balance sheet, and global demand for turbines. Premium valuations mean staggered accumulation is advisable during corrections.

Positive

• ✅ Strong ROCE (47.6%) and ROE (36.5%)
• ✅ Debt-free balance sheet (Debt-to-equity 0.00)
• ✅ Consistent PAT growth (+6.11%)
• ✅ Global presence and technological expertise in turbines

Limitation

• ⚠️ High P/B ratio (~15.1)
• ⚠️ P/E (48.1) slightly above industry average (43.9)
• ⚠️ Dividend yield modest at 0.77%
• ⚠️ Stock trades below DMA 50 & DMA 200, showing weak momentum

Company Negative News

• 📉 Reduction in FII holdings (-1.85%)
• 📉 Weak technical momentum (MACD -1.90)
• 📉 52-week performance subdued (Index 22.0%)

Company Positive News

• 📈 Increase in DII holdings (+1.73%)
• 📈 Strong quarterly PAT growth (+6.11%)

Industry

• 🌐 Industrial turbine and power equipment sector supported by infrastructure and energy demand
• 🌐 Industry PE at 43.9, showing Triveni Turbine trades at slight premium valuation

Conclusion

🔎 Triveni Turbine is a fundamentally strong company with debt-free operations, robust return metrics, and global presence. Valuations are slightly stretched, making accumulation advisable near ₹480–₹510 for margin of safety. Long-term holding is attractive given strong fundamentals and demand for industrial turbines.

Would you like me to extend this with a peer benchmarking overlay against Thermax, BHEL, and Siemens India, or a sector rotation basket scan to identify undervalued capital goods peers for compounding?