Triveni Engineering & Industries
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Triveni Engineering & Industries Limited (TEIL) is navigating a challenging landscape marked by rising cane prices and agro-climatic headwinds, which have pressured margins and led to a forecasted revenue contraction. Management's focus on operational efficiency and a strategic pivot towards maize-based ethanol production are critical developments that support Vista's outlook. The distillery segment's turnaround and the engineering business's stable performance provide a buffer against these challenges. However, the company's reliance on sugar pricing and the integration of Sir Shadi Lal Enterprises Limited (SSEL) present both opportunities and risks. Vista's forecast reflects these dynamics, with expectations of continued long-term growth despite current pressures, leading to a valuation categorized as a value trap. The anticipated upside is limited, with a target price indicating a potential decline. Over the next 12-24 months, key opportunities include leveraging synergies from the SSEL integration and maximizing sugar crystallization, while watchpoints include raw material price volatility and regulatory challenges in the distillery segment
Why We Like This Stock
- Management's strategic pivot towards maize-based ethanol production is expected to enhance revenue stability
- The distillery segment's turnaround and operational efficiency initiatives provide a foundation for future growth
- The engineering business shows resilience with a strong order book, supporting overall company performance
Things To Watch Out For
- Rising cane prices and agro-climatic challenges are pressuring profit margins and expected revenue
- Regulatory headwinds in the distillery segment may impact short-term performance and profitability
- The integration of SSEL presents execution risks that could affect operational efficiency and market positioning
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 5,220 | 5,689 | 6,290 | 6,199 | 6,364 |
| Profit Before Tax (Cr.) | 529 | 326 | 378 | 369 | 380 |
| PBT Margin | 10.1% | 5.7% | 6.0% | 6.0% | 6.0% |
| Net Profit (Cr.) | 395 | 249 | 332 | 327 | 337 |
| Earnings Per Share | 18.0 | 11.6 | 15.1 | 14.9 | 15.3 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Triveni Engineering & Industries Limited engages in the sugar and allied businesses, and engineering businesses in India and internationally. The company is involved in the production of refined sugar, multi-grade white crystal sugar, pharmaceutical-grade sugar, potable alcohol, fuel-ethanol, and power from bagasse; production of alcohol/ethanol using molasses; sale of surplus molasses and bagasse; operation of distilleries; and production of ethanol, extra neutral alcohol, and potable liquor. It also engages in the manufacture of low-speed gears and gear boxes covering supply to OEMs, after-market services, and retrofitment of gearboxes; EPC contracts, equipment supply, hybrid annuity model projects, and operations and maintenance contracts; operation of fuel stations; and retail of diesel/petrol. In addition, the company provides steam and gas turbines, centrifugal compressors, reciprocating compressors, centrifugal pumps, fans and blowers, and hydel turbines; propulsion gearboxes, propulsion shafting, fin stabilisers, special application pumps; water and wastewater treatment and network management, municipal wastewater/sewage/common effluent treatment plant, desalination for seawater and brackish water, recycle and reuse, and zero liquid discharge; and operations and maintenance, annual maintenance contracts, product and process audits, health check-ups, upgradation of existing plants, spares and service, and on-site support services. It serves refineries, coal, sand processing plant, non-ferrous industries, oil and gas, thermal power plants, steel plants, sugar and allied industries, and desalination industries. Triveni Engineering & Industries Limited was incorporated in 1932 and is headquartered in Noida, India.