Triveni Turbine (TRITURBINE)

FairStock Score: 55/100 — STEADY

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

Key Financials

Strengths

• Exceptional capital efficiency: ROE 28.09% and ROCE 41.36%.
• Near-zero debt (D/E 0.03), healthy free cash flow of ₹180 Cr, and Altman Z-Score 6.88.
• Strong long-term growth: 5-year revenue CAGR 23.33%.
• Promoter holding 55.84% and Piotroski F-Score 8/9 support governance and earnings quality.

Concerns

• Very expensive: P/E 44.11, P/B 15.13, with price ₹579 far above Graham Number ₹95.98 and DCF value ₹116.57.
• Negative margin of safety of -409.69% versus Graham Number.
• Growth slowing: latest sales/profit growth ~17% versus 5-year CAGR 23.33%.
• Low dividend yield of 0.82%, so total return depends entirely on further price appreciation.

AI Analysis

Applying Benjamin Graham and my own discipline, Triveni Turbine looks like a high-quality business trapped in an expensive wrapper. A 28.09% ROE, 41.36% ROCE, and debt-equity of only 0.03 are exactly the capital-efficient, financially fortress-like characteristics I admire. Promoters owning 55.84% also aligns interests. Free cash flow of ₹180 Cr gives real cash backing, and a Piotroski score of 8/9 indicates sound reported earnings. The five-year revenue CAGR of 23.33% is impressive; latest quarter sales of ₹624 Cr and net profit of ₹92 Cr show continuing momentum, though growth has cooled to around 17%. But price is where discipline must govern. At ₹579, the market asks me to pay 44.11 times earnings and 15.13 times book. Graham taught me that price is what you pay, value is what you get. The Graham Number works out to ₹95.98, implying a negative 409.69% margin of safety. Even a DCF estimate of ₹116.57 suggests the current price embeds excessive optimism. PEG at 8.02 tells me growth is more than fully paid for. A great business can become a poor investment when bought at too high a price. The Altman Z-Score of 6.88 and negligible debt confirm this is not a financial distress story; it is simply an overvalued good one. The dividend yield of only 0.82% means shareholders are relying entirely on capital appreciation. I would wait patiently for Mr. Market to offer a far more reasonable price, because in investing, paying too much for a wonderful company can still ruin your returns.

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