True Green Bio Energy Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹204.00+₹17.45 (+9.35%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of True Green Bio Energy Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

True Green Bio Energy Limited engages in manufacture and sale of grain based ethanol in India. The company was formerly known as CIL Nova Petrochemicals Limited and changed its name to True Green Bio Energy Limited in September 2024.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees209

Annual revenue₹278 Cr

How does it make money?

Turns over ₹278 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 209 employees supports ₹1.33 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.33 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 13.9% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE25.9%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.43 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

59/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

75/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

13.0x

2Y Median

266.6x

28 monthly readings · mean 279.5x · range 19.3x–640.0x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 95% below its 2y median of 266.6x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 81% below the peer median of 69.2x.

vs. its own history

Cheap

266.6x median over 28 months · -95%

vs. sector peers

Cheap

69.2x median of 4 peers · -81%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

16.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from -6.7% to 19.7%.
Return on capital is rising
ROCE has improved from -1.7% to 13.9%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 153135% over 3 years, from ₹0 Cr to ₹340 Cr.
🔴High leverageFinancial
Debt/Equity of 2.14x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 22% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 95% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 81% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 5.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 20%✓ 21.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 5.6x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹143 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 11%✓ 13.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 4.4x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

7 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹672 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.0x

Cheap

Cheap against the generic band

P/B Ratio

4.20x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹15.64

Profitable

Profitable on a per-share basis

ROE

19.7%

Strong

Strong capital efficiency

ROCE

13.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

2.14x

High

High leverage

Revenue Growth (YoY)

3143.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

1529.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹143 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

14.8%

Average

Average margins

Net Margin

10.6%

Good

Strong bottom-line conversion

Current Ratio

1.18

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

-0.43

Defensive

Steadier than the market

52W Range Position

74%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

190.0 / 204.1

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

53.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	—	₹23 Cr	₹278 Cr	—
EBITDA	₹3 Cr	-₹1 Cr	₹0 Cr	₹60 Cr	+177.0%
EBITDA Margin	—	—	0.9%	21.7%	—
PAT (Net Profit)	-₹6 Cr	₹1 Cr	-₹2 Cr	₹31 Cr	—
EPS	₹-2.19	₹0.3	₹-0.78	₹9.55	—
ROE	-6.7%	0.9%	-1.9%	19.7%	—
ROCE	-1.7%	-3.8%	-0.5%	13.9%	—
Total Debt	₹0 Cr	₹18 Cr	₹174 Cr	₹340 Cr	+1052.9%
Free Cash Flow	₹20 Cr	-₹38 Cr	-₹188 Cr	-₹143 Cr	—

🟢 EBITDA has grown at 177.0% a year over 3 years.

🟢 EBITDA Margin has risen from 0.9% to 21.7% over 3 years (+20.8 pts).

🟢 PAT (Net Profit) has turned positive, from -₹6 Cr to ₹31 Cr.

🟢 EPS has turned positive, from ₹-2.19 to ₹9.55.

🟢 ROE has risen from -6.7% to 19.7% over 3 years (+26.5 pts).

🟢 ROCE has risen from -1.7% to 13.9% over 3 years (+15.6 pts).

🔴 Total Debt has grown at 1052.9% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹20 Cr to -₹143 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹558 Cr

Total Liabilities

₹399 Cr

Cash & Equivalents

₹19 Cr

Operating Cash Flow

-₹47 Cr

Capex

-₹96 Cr

Shareholding (proxy)

Institutional Holding

6.1%

Insider Holding

82.1%

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

2 mixed4 general

True Green Bio Energy (BSE:533407) - Stock Analysis

Simply Wall Street, 03 Oct

True Green Bio Energy returns to profitability in FY26

scanx.trade, 01 Oct

True Green Bio Energy reports standalone net profit of Rs 21.85 crore in the June 2026 quarter

Business Standard, 14 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Why Is TruAlt Bioenergy Share Price Falling Key Reasons 2026

Univest, 24 JunPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

True Green Bio Energy passes all four resolutions at 22nd AGM

scanx.trade, 29 Sept

TRUEGREEN Stock Price and Chart — BSE:TRUEGREEN

TradingView, 05 Feb

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Profitability · Valuation

MiddlingGrowth

WeakFinancial Health · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑