Triton Valves (505978)

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Sales growth of 25.57% shows strong revenue momentum
• Profit growth of 288.79% and PEG of 0.35 indicate a fast-growing earnings trajectory, albeit from a low base
• Piotroski F-Score of 7/9 suggests reasonably healthy fundamentals
• Book value of ₹1,018.21 per share provides some asset support

Concerns

• P/E of 55.49 and P/B of 2.95 are demanding relative to ROE of 6.86% and ROCE of 8.75%
• Latest quarter net profit is only ₹3 Cr on sales of ₹153 Cr, implying a very thin net margin
• Debt/Equity and promoter holding are not disclosed, leaving leverage and governance unclear
• Dividend yield of 0.28% is negligible, and the stock sits near its 52-week high of ₹2,998.75

AI Analysis

At ₹2,998.75, Triton Valves is not the kind of stock Graham would pick from a punch card. The share has travelled from ₹650 to ₹2,998.75, a four-and-a-half times move, and the market cap of ₹360 Cr now carries a P/E of 55.49. For that price, I need a business with a clear moat and high returns on tangible capital. What do I see? Sales grew 25.57% and reported profit jumped 288.79%, but the latest quarter shows ₹153 Cr of sales producing only ₹3 Cr of net profit. That is under 2% net margin—proof that this remains a thin-margin, capital-intensive auto-components business. Return on equity of 6.86% and ROCE of 8.75% are far below what I would demand from a company at 2.95 times book value. The Piotroski score of 7 suggests the balance sheet isn't crumbling, and book value of ₹1,018.21 per share is real, but I cannot judge leverage because debt/equity is not given. The 0.28% dividend yield tells me investors are paying for growth, not income. PEG of 0.35 looks attractive only if today's low base of profits persists; a ₹3 Cr quarterly profit does not justify a 55 P/E in my world. Auto-component makers also face cyclical demand and technological shifts in combustion engines. This might be a fast grower in a niche, but at this price, the margin of safety is absent. I would need to see sustained margin expansion, better returns on capital, and management's candid explanation of the moat before risking my money.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer