TruAlt Bioenergy (TRUALT)

FairStock Score: 44/100 — MIXED

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

Key Financials

Strengths

• Revenue surged 71.82%, indicating strong demand for its bioenergy products.
• Promoter holding is high at 70.55%, aligning owner and minority shareholder interests.
• Latest quarter delivered ₹713 Cr sales and ₹69 Cr net profit, showing meaningful operating scale.
• ROCE of 14.18% is respectable for an agro-industrial business, though modest.

Concerns

• Net profit declined 7.79% despite a massive revenue jump, suggesting margin compression or rising costs.
• Debt/Equity of 1.10 is high, reducing financial flexibility.
• P/E of 23.29 with falling earnings is not cheap; the PEG of 0.32 appears misleadingly based on sales growth.
• Piotroski F-Score of 4/9 signals weak financial health and deteriorating fundamentals.

AI Analysis

Let me begin with what Graham taught: price is what you pay, value is what you get. TruAlt Bioenergy's top line grew 71.82%, and that is impressive. But I do not invest in revenue; I invest in earnings. Net profit fell 7.79%, which is a red flag. The latest quarter earned ₹69 crore on ₹713 crore of sales — a net margin near 10% — yet the trend is going the wrong way. At ₹488.40, I am paying 23.29 times trailing earnings for a business whose profit is shrinking. The advertised PEG of 0.32 appears to be based on sales growth, not profit growth; with earnings down, that cheapness is an illusion. The balance sheet is another concern. Debt/equity of 1.10 is not terrible for a capital-intensive agri-commodity player, but it is high enough to remove my margin of safety. ROCE of 14.18% is moderate, but with leverage it doesn't single out a great moat. The Piotroski F-score of 4/9 tells me financial health has deteriorated. On the positive side, promoter holding of 70.55% is reassuring; the owners have skin in the game. There is no dividend, so all value creation must come from price appreciation. Bioenergy is heavily shaped by government policy, feedstock costs, and commodity cycles. This is not a predictable consumer franchise; it looks more like a cyclical industrial. I need profit growth to match revenue growth before I can call it a compounder. At this price, with falling earnings and rising debt, Mr. Market is asking me to pay for future optimism. I prefer to wait.

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