Current Rating Overview
MarketsMOJO currently assigns Triveni Turbine Ltd. a 'Hold' rating, reflecting a balanced view of the stock's prospects. This rating indicates that investors should maintain their existing positions rather than aggressively buying or selling the stock at this time. The 'Hold' status is supported by a composite assessment of four key parameters: Quality, Valuation, Financial Trend, and Technicals.
Quality Assessment
As of 31 January 2026, Triveni Turbine Ltd. demonstrates excellent quality fundamentals. The company boasts a strong long-term Return on Equity (ROE) averaging 22.31%, signalling efficient capital utilisation and robust profitability. Net sales have grown at an impressive annual rate of 22.09%, while operating profit has expanded even faster at 25.02% per annum, underscoring healthy operational performance. Additionally, the company maintains a very conservative capital structure with an average Debt to Equity ratio of zero, indicating minimal financial leverage and reduced risk from debt obligations.
Valuation Considerations
Despite the strong quality metrics, the valuation of Triveni Turbine Ltd. is currently very expensive. The stock trades at a Price to Book (P/B) ratio of 12.2, which is significantly higher than typical market averages and peer valuations. This elevated valuation is partly justified by the company’s high ROE of 26.3%, but it also implies that investors are paying a premium for future growth expectations. The Price/Earnings to Growth (PEG) ratio stands at 5.4, suggesting that earnings growth is not fully aligned with the current price, which may temper upside potential in the near term.
Financial Trend Analysis
The financial trend for Triveni Turbine Ltd. is currently flat. The latest annual operating cash flow is recorded at ₹186.73 crores, which is the lowest in recent periods, indicating some stagnation in cash generation. The debtors turnover ratio for the half year is 4.32 times, also at a low point, reflecting slower collection efficiency. Cash and cash equivalents stand at ₹196.30 crores, the lowest in the half-year period, which may constrain liquidity flexibility. Despite these flat trends, the company’s profits have risen by 8.5% over the past year, showing some resilience amid challenging conditions.
Technical Outlook
From a technical perspective, the stock exhibits a mildly bearish trend. Over the past year, Triveni Turbine Ltd. has underperformed the broader market significantly. While the BSE500 index has delivered a positive return of 7.95% in the last 12 months, the stock has declined by 21.67%. Shorter-term price movements show mixed signals, with a 1-day gain of 3.14% and a 1-week gain of 7.52%, but monthly and quarterly returns remain negative at -6.42% and -5.70% respectively. This technical pattern suggests caution for momentum-driven investors.
Investor Implications
For investors, the 'Hold' rating on Triveni Turbine Ltd. implies a recommendation to maintain current holdings without initiating new positions or liquidating existing ones. The company’s excellent quality and strong fundamentals provide a solid foundation, but the very expensive valuation and flat financial trends limit immediate upside potential. The mildly bearish technical signals further reinforce a cautious stance. Investors should monitor upcoming quarterly results and market developments closely to reassess the stock’s outlook.
Additional Market Context
Institutional investors hold a significant 36.98% stake in Triveni Turbine Ltd., reflecting confidence from well-resourced market participants who typically conduct thorough fundamental analysis. This institutional backing may provide some stability to the stock price amid broader market volatility. However, the stock’s small-cap status and sector focus on Heavy Electrical Equipment mean it may be more susceptible to cyclical industry trends and economic shifts.
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- - Top-rated across platform
- - Strong price momentum
- - Near-term growth potential
Summary of Key Metrics as of 31 January 2026
Triveni Turbine Ltd. currently holds a Mojo Score of 50.0, reflecting a balanced overall assessment. The quality grade is excellent, valuation grade very expensive, financial grade flat, and technical grade mildly bearish. Stock returns over various periods show a mixed picture: a 1-day gain of 3.14%, 1-week gain of 7.52%, but declines over 1 month (-6.42%), 3 months (-5.70%), 6 months (-18.22%), year-to-date (-7.42%), and 1 year (-21.67%).
These figures highlight the stock’s recent volatility and underperformance relative to the broader market, which has returned 7.95% over the past year. Investors should weigh these factors carefully when considering their portfolio allocations.
Conclusion
In conclusion, Triveni Turbine Ltd.’s 'Hold' rating by MarketsMOJO reflects a nuanced view balancing strong company quality and fundamentals against expensive valuation and subdued financial trends. The mildly bearish technical outlook and recent underperformance relative to the market suggest that investors adopt a cautious approach. Maintaining existing positions while monitoring future developments is the prudent strategy at this juncture.
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