TRL Krosaki's Strong FY24 Performance Drives 500 bps ROE Increase, Shares Remain Attractively Valued

27 August 2024

• Strong ROE Growth
  TRL Krosaki delivered a robust FY24 performance, achieving a significant 500 basis point increase in return on equity (ROE). This improvement was primarily driven by a 300 basis point rise in bottom-line margins, reflecting enhanced profitability and effective cost management.

• Revenue Growth and Financial Health
  The company exceeded earlier projections, reaching net sales of ₹2,516 crore for FY24. This growth underscores TRL Krosaki's strong financial health and operational efficiency. The impressive revenue figures, combined with the strong earnings per share (EPS) of ₹116, affirm the company’s upward trajectory in the steel support sector.

• Attractive Valuation
  Despite its strong performance, TRL Krosaki’s shares are attractively valued with a P/E ratio of 16, significantly below the industry median of 40. This undervaluation highlights the potential for substantial upside, making the stock a favorable option for investors seeking value in a high-growth sector.

• Operational and Profitability Gains
  With the substantial increase in ROE and margins, the company is well-positioned for further growth. Its continuous expansion, rising profitability, and strategic positioning in the industry signal a promising future.

• Investment Conclusion
  TRL Krosaki’s combination of strong financial performance, operational efficiency, and attractive valuation presents a compelling investment opportunity. Given its undervalued shares and promising outlook, the stock offers significant long-term potential for investors.