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Check Before You Invest : TruAlt Bioenergy Ltd

BSE: 544545 NSE: TRUALT ISIN: INE0MWH01014
  |   Sector:  FMCG   |   Industry:  Breweries & Distilleries

Snapshot

Q.1 Which industry/sub-sector does TruAlt Bioenergy Ltd belong to?
TruAlt Bioenergy Ltd belongs to the FMCG sector, operating specifically within the Breweries & Distilleries segment.
Q.2 Is TruAlt Bioenergy Ltd a good quality company?
TruAlt Bioenergy Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is TruAlt Bioenergy Ltd undervalued or overvalued?
TruAlt Bioenergy Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 3-year
Historic Median
Price to Earnings 29.55 25.29
Price to Book 1.9 1.64
Price to Sales 2.21 1.89
EV to EBITDA 15.05 13.41
Q.4 Is TruAlt Bioenergy Ltd a good buy now?
TruAlt Bioenergy Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

Q.1 Gross Profit margin of TruAlt Bioenergy Ltd?
TruAlt Bioenergy Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.5% for FY-2025, which is above its 3-year median of 9.2%, indicating increasing margins.

Q.2 Operating Profit Margin of TruAlt Bioenergy Ltd?
TruAlt Bioenergy Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.81% for FY-2025, which is in line with its 3-year median of 15.43% indicating stable margins.

Q.3 Net Profit Margin of TruAlt Bioenergy Ltd?
TruAlt Bioenergy Ltd Net Profit Margin is 7.48% for FY-2025, is above its 3-year median of 4.65%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 11.5 9.2
Operating Profit Margin (%) 15.81 15.43
Net Profit Margin (%) 7.48 4.65

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of TruAlt Bioenergy Ltd?
TruAlt Bioenergy Ltd Return on Asset is 5.27%, which is above its 3-year historical median of 3.82%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of TruAlt Bioenergy Ltd?
TruAlt Bioenergy Ltd Return on capital employed is 13.87% for FY-2025, which is above its 3-year historical median of 12.12%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.6 Return on Equity (ROE) of TruAlt Bioenergy Ltd?
TruAlt Bioenergy Ltd Return on equity is 31.61% for FY-2025, which is in line with its 3-year historical median of 32.07%, indicating the business is making similar use of its shareholders capital.

Q.7 Cash conversion cycle of TruAlt Bioenergy Ltd?
TruAlt Bioenergy Ltd Cash conversion cycle is 29 days, in line with its 3-year historical median of 28 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 0.7 0.7
ROE (%) 31.61 32.07
ROCE (%) 13.87 12.12
Cash Conversion Cycle 29 days 28 days

C: How much debt does the business have and is it at a sustainable level?

Q.8 Debt to Equity ratio of TruAlt Bioenergy Ltd?
TruAlt Bioenergy Ltd Debt-to-Equity ratio is 2.00, which is above the industry average of 0.29, indicating higher debt levels in the industry.

Q.9 Debt to cash flow from operations of TruAlt Bioenergy Ltd?
TruAlt Bioenergy Ltd Debt to cash flow from operations is 4.57, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of TruAlt Bioenergy Ltd?

Q.1 Promoter shareholding and pledge status of TruAlt Bioenergy Ltd?
Promoters hold 70.55% of the TruAlt Bioenergy Ltd, with 36.85% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does TruAlt Bioenergy Ltd performance compare with that of its Peers?

Q.1 Revenue growth of TruAlt Bioenergy Ltd vs industry peers?
TruAlt Bioenergy Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 8.98%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) - 9
Gross Profit Growth (%) 110.7 12.8
Operating Profit Growth (%) 58 16
Net Profit Growth (%) 302.9 4.9
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 0.7 1.15
ROE (%) 31.61 9.67
ROCE (%) 13.87 11.76
Cash Conversion Cycle (days) 28.84 24

Valuation & price assessment

Q.1 Stock return of TruAlt Bioenergy Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of TruAlt Bioenergy Ltd vs historical?
The current P/E ratio of 29.55 is higher than its historical median of 25.29, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 29.55 25.29 42.02
Price to Book 1.9 1.64 2.73
Price to Sales 2.21 1.89 1.78
EV to EBITDA 15.05 13.41 20.55

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