TRITURBINE - Investment Analysis: Buy Signal or Bull Trap?

Last Updated Time : 19 Sept 25, 2:16 pm

Investment Rating: 4.4

Here’s a detailed analysis of Triveni Turbine Ltd (TRITURBINE) as a long-term investment

📊 Fundamental Analysis

Valuation

P/E Ratio: 49.6 vs Industry PE of 49.4 — fairly valued relative to peers.

PEG Ratio: 1.03 — indicates balanced valuation for expected growth.

Price to Book: ~16.5 — premium, but justified by strong profitability.

Profitability

ROCE: 47.6% and ROE: 36.5% — exceptional metrics, signaling superior capital efficiency and shareholder value creation.

EPS: ₹11.7 — solid earnings base.

Quarterly PAT Decline: -3.49% — minor dip, not structurally concerning.

Dividend Yield: 0.74% — modest, adds some income cushion.

Debt to Equity: 0.02 — virtually debt-free, excellent for long-term resilience.

📈 Technical & Trend Indicators

DMA 50 / DMA 200: ₹551 / ₹586 — current price is below both, indicating short-term bearish sentiment.

RSI: 50.6 — neutral zone, no strong momentum.

MACD: -5.30 — bearish crossover, confirms weakness.

Volume: Below average — suggests cooling off in short-term interest.

52W Index: Trading at ~19% of its 52-week high — deep correction, potential value zone.

💡 Ideal Entry Price Zone

Entry Zone: ₹500–₹520

This range offers proximity to recent support and better valuation comfort.

Avoid entering above ₹560 unless earnings growth accelerates or technicals improve.

🧭 Exit Strategy / Holding Period

If you already hold TRITURBINE

Holding Period: 5+ years — ideal for compounding returns from high ROE/ROCE and sector leadership.

Exit Strategy

Fundamental Trigger: Exit if ROE drops below 20% or PEG rises above 1.5 for 2+ quarters.

Technical Trigger: Consider trimming if price nears ₹850–₹880 without earnings support.

Re-entry: If price dips near ₹480 with improving profitability and volume support.

🧠 Final Verdict

Triveni Turbine is a high-quality long-term compounder with outstanding profitability, near-zero debt, and fair valuation. While short-term technicals are weak, its fundamentals make it a strong candidate for patient investors focused on quality and capital efficiency.

Let me know if you'd like a peer comparison in the industrial or energy equipment space.

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