Triven.Engg.Ind. (TRIVENI)

FairStock Score: 26/100 — RISKY

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

Key Financials

AI Analysis

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

Let me apply the same standards I'd use before putting a rupee to work. Triveni Engg. Ind. is in sugar, a commodity business where the supplier rarely has lasting pricing power. Last quarter it earned ₹78 Cr on ₹1,478 Cr of sales, roughly a 5.3% net margin, while full-year ROE is only 9.56% and ROCE is 8.65%. As Graham would ask: is the price justified by durable earnings? At ₹419.90, the stock trades at 27.56 times earnings and 2.95 times book value. The book value is ₹142.13, so the market is asking nearly three times book for a business earning less than ten percent on that book. The Graham Number comes to ₹202.24, meaning at today's price I have a negative margin of safety, not a margin. Yes, recent growth is strong—sales up 19.58% and profit up 34.44%—but sugar profits are notoriously cyclical. A PEG of 2.45 suggests this growth is already fully priced in. More troubling is free cash flow: negative ₹425 crore. The company is reporting profits while cash is flowing out. The Altman Z-Score of 2.66 is in a grey zone, and an EV/EBITDA of 280.42 makes any earnings-based valuation meaningless at this point. Promoter holding of 60.98% is reassuring, and a Piotroski score of 7/9 suggests balance-sheet discipline. Debt-to-equity of 0.64 is acceptable. But in my circle, buying a commodity cyclical at a rich multiple with negative cash conversion fails the test. I prefer a wonderful business at a fair price; here I see an ordinary business at what appears to be a very demanding price. I'd keep it on the watchlist, not in the portfolio.

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