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TRIVENI - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.2
| Stock Code | TRIVENI | Market Cap | 7,876 Cr. | Current Price | 359 ₹ | High / Low | 468 ₹ |
| Stock P/E | 24.9 | Book Value | 141 ₹ | Dividend Yield | 0.70 % | ROCE | 9.01 % |
| ROE | 8.32 % | Face Value | 1.00 ₹ | DMA 50 | 358 ₹ | DMA 200 | 368 ₹ |
| Chg in FII Hold | 1.26 % | Chg in DII Hold | 0.16 % | PAT Qtr | 109 Cr. | PAT Prev Qtr | 31.9 Cr. |
| RSI | 51.3 | MACD | -3.15 | Volume | 3,10,539 | Avg Vol 1Wk | 7,67,755 |
| Low price | 305 ₹ | High price | 468 ₹ | PEG Ratio | -1.80 | Debt to equity | 0.17 |
| 52w Index | 32.8 % | Qtr Profit Var | 92.0 % | EPS | 13.7 ₹ | Industry PE | 10.6 |
📊 Core Financials
- Revenue Growth: Quarterly PAT improved sharply from 31.9 Cr. to 109 Cr., showing strong growth momentum.
- Profit Margins: EPS at 13.7 ₹ reflects moderate profitability.
- Debt Ratios: Debt-to-equity at 0.17, low leverage indicating financial stability.
- Cash Flows: Likely positive given profitability rebound and low debt.
- Return Metrics: ROCE at 9.01% and ROE at 8.32% are modest, highlighting average efficiency.
💹 Valuation Indicators
- P/E Ratio: 24.9, higher than industry average (10.6), suggesting premium valuation.
- P/B Ratio: ~2.55 (Current Price / Book Value), reasonable but slightly elevated.
- PEG Ratio: -1.80, negative, reflecting weak growth-adjusted valuation.
- Intrinsic Value: Current price (359 ₹) trades near DMA 50 (358 ₹) and DMA 200 (368 ₹), showing fair valuation with limited margin of safety.
🏢 Business Model & Competitive Advantage
- TRIVENI operates in sugar, engineering, and water treatment, benefiting from diversified revenue streams.
- Competitive advantage lies in integrated operations and strong domestic presence.
- Profitability remains modest compared to valuation, limiting upside potential.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near 340–355 ₹, close to support levels and DMA averages.
- Long-Term Holding: Suitable for investors seeking exposure to diversified industrial growth. Holding recommended only if profitability sustains and valuation moderates.
Positive
- Quarterly PAT surged 92%, showing strong operational improvement.
- Low debt-to-equity ratio (0.17) ensures financial stability.
- FII (+1.26%) and DII (+0.16%) holdings increased, reflecting institutional confidence.
Limitation
- P/E ratio higher than industry average, suggesting overvaluation.
- ROCE and ROE remain modest despite profit growth.
- PEG ratio negative, indicating weak growth-adjusted valuation.
Company Negative News
- Stock trading close to DMA levels, reflecting limited momentum.
- MACD negative (-3.15), showing weak technical trend.
Company Positive News
- Quarterly PAT improved significantly from 31.9 Cr. to 109 Cr.
- Institutional holdings increased, showing investor confidence.
Industry
- Industry P/E at 10.6, much lower than TRIVENI’s valuation, suggesting sector trades at more reasonable multiples.
- Sugar and engineering sector benefits from government policies and infrastructure demand, but remains cyclical.
Conclusion
- TRIVENI shows improving fundamentals with strong profit growth and low debt.
- Valuation is stretched compared to industry, limiting near-term upside.
- Best suited for long-term investors seeking diversified exposure, with entry near 340–355 ₹ offering better value.
I can also prepare a sector peer comparison HTML table (Triveni vs Balrampur Chini, Dhampur, Dwarikesh) to highlight relative valuation and profitability metrics if you’d like.