T R I L (TARIL)

FairStock Score: 58/100 — STEADY

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

Key Financials

Strengths

• ROE of 21.51% and ROCE of 27.97% show strong capital efficiency
• Debt/Equity of just 0.23 and Piotroski F-Score of 8/9 indicate sound financial health
• Sales growth of 29.48% and profit growth of 68.28% demonstrate strong momentum
• Promoter holding of 64.36% aligns ownership with minority shareholders
• Altman Z-Score of 4.81 suggests low bankruptcy risk

Concerns

• Valuation is rich: P/E of 34.90, P/B of 7.67 and EV/EBITDA of 47.94
• Graham Number of ₹95.60 gives a deeply negative margin of safety of -224.40%
• Negative free cash flow of ₹-469 Cr raises questions about earnings quality
• Dividend yield of just 0.06% offers no income support

AI Analysis

T R I L catches my eye as a profitable compounder, but it tests my discipline. The business earns a strong 21.51% return on equity and 27.97% ROCE, with debt/equity only 0.23. That is a healthy balance sheet, and the Piotroski score of 8/9 plus Altman Z of 4.81 confirm financial soundness. Sales grew 29.48% and profit jumped 68.28%, so the latest quarter's ₹737 Cr revenue and ₹76 Cr net profit show momentum. Promoters own 64.36%, so their interests are aligned with mine. Yet this is not a Graham-style bargain. At ₹319.90, the P/E is 34.90 and price-to-book is 7.67, far above book value of ₹41.71. Graham Number works out to ₹95.60, meaning the market is paying over three times my conservative estimate; the margin of safety is a painful -224.40%. Even the EV/EBITDA of 47.94 makes me gulp. The company produced negative free cash flow of ₹-469 Cr despite reporting profits, so earnings are not yet converting into cash. The dividend yield of 0.06% means I am not being paid to wait. This looks like a fast grower, and the PEG ratio of 0.67 suggests the growth is real, but fast growers can stumble when growth slows or working capital swallows cash. Heavy electrical equipment can be cyclical; the stock has already fallen from a 52-week high of ₹552 to ₹319.90. I would want to see order inflows, sustained margins, improving cash conversion, and a better price before committing capital. Ben Graham taught me that price is what you pay, value is what you get. Here I struggle to see the value at this price. I'll keep it on my watchlist, but I will not chase it.

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