Should You Think About Buying Triveni Engineering & Industries Limited (NSE:TRIVENI) Now?

Triveni Engineering & Industries Limited (NSE:TRIVENI), is not the largest company out there, but it saw a double-digit share price rise of over 10% in the past couple of months on the NSEI. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Triveni Engineering & Industries’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Triveni Engineering & Industries

Is Triveni Engineering & Industries Still Cheap?

Great news for investors – Triveni Engineering & Industries is still trading at a fairly cheap price. According to my valuation, the intrinsic value for the stock is ₹378.12, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What’s more interesting is that, Triveni Engineering & Industries’s share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

What kind of growth will Triveni Engineering & Industries generate?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Though in the case of Triveni Engineering & Industries, it is expected to deliver a highly negative earnings growth in the next few years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.

What This Means For You

Are you a shareholder? Although TRIVENI is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. I recommend you think about whether you want to increase your portfolio exposure to TRIVENI, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping tabs on TRIVENI for some time, but hesitant on making the leap, I recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

If you'd like to know more about Triveni Engineering & Industries as a business, it's important to be aware of any risks it's facing. To that end, you should learn about the 3 warning signs we've spotted with Triveni Engineering & Industries (including 1 which is potentially serious).

If you are no longer interested in Triveni Engineering & Industries, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.