Risk factor
Resilient to price shocks
Profitability factor
Weak growth
About
Triveni Engineering & Industries Limited (TEIL), an Indian company founded in 1932 and headquartered in Noida, operates both domestically and internationally across its extensive sugar and engineering divisions. Within its sugar segment, TEIL is a significant producer and supplier of white crystal sugar, serving diverse clients in the beverage, food, fast-moving consumer goods (FMCG), pharmaceutical, and confectionery industries, including through its 'Shagun' brand. The company also maximizes value from its by-products by selling surplus molasses and bagasse. Its distillery facilities are engaged in manufacturing ethanol, extra neutral alcohol, rectified spirit, and denatured spirit. Furthermore, TEIL operates a 104.5 MW grid-connected co-generation power plant. The engineering arm of TEIL specializes in fabricating high-speed gears and gearboxes, crucial for applications such as gas and steam turbines, compressors, pumps, and blowers. It also produces low-speed gearboxes essential for heavy industrial uses, including hydel turbines, steel, sugar, rubber, cement, thermal power plants, and plastics. This division's product range also includes reciprocating compressors, pumps, and marine equipment. TEIL offers a comprehensive suite of services, from diagnostics, troubleshooting, reverse engineering, and replacement solutions to overhauling, on-site training, plant upgradation, automation, installation, commissioning, refurbishment, and gearbox health monitoring. Additionally, the company provides solutions for water and wastewater management, with a focus on water recycling. Beyond these primary businesses, TEIL is active in trading various FMCG products and operates retail outlets for diesel and petrol. A key contributor to India's defense sector, the company develops and manufactures specialized components such as propulsion gearboxes, auxiliary power gas turbine generators, steam turbines, turbo alternator turbines, turbo pumps, and steering systems for the nation's armed forces.
Company Valuation
Based on key historical and expected multiples, the stock is slightly overvalued relative to its peers. In particular, the stock is overpriced on P/E, of fair value on EV
Target Price
The average target price of TRIVENI.NS is 448 and suggests 1.51% downside potential. Usually, this means a SELL recommendation among investment firms, or a recommendation