Tenneco Clean (TENNIND)

FairStock Score: 55/100 — STEADY

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Let's look at Tenneco Clean through the lens of business quality and price. On quality, this is an impressive franchise. ROCE of 57.30% tells me management is deploying capital exceptionally well, and with debt/equity of 0.03, the balance sheet is almost debt-free. They generated ₹535 Cr of free cash flow, and the Piotroski score of 7/9 confirms healthy financials. Promoters own 74.79%, aligned with minority shareholders. These are exactly the characteristics I admire: a simple business, high returns on capital, and low leverage. But price is where I pause. At ₹572.55, the market is paying 41.53 times earnings and 24.71 times book value, while book value is only ₹23.17. That is a very demanding price for a company growing sales at 14.23% and profits at 10.26%. The PEG ratio of 3.39 tells me the growth rate does not justify the multiple. In my experience, overpaying for a wonderful business is still a mistake; the margin of safety must come from purchase price. With a dividend yield of zero, the shareholder must rely entirely on future appreciation, and at this valuation, a lot of good news is already priced in. The latest quarter sales are ₹1,285 Cr and net profit ₹119 Cr, so operations are solid. But profit growth lagging sales growth suggests some margin pressure, and a FairStock Score of 51 is mixed. This is a quality stalwart, not a bargain. I would wait for a lower price or a better growth trajectory before committing new capital.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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