Shares of TruAlt Bioenergy fell 3.3% to clock an intraday low of Rs 513.10 on the BSE, dropping 6.7% from their listing price of Rs 550 within just two trading sessions. The stock, which had debuted slightly below grey market expectations, faced selling pressure as investors booked early profits after a strong IPO debut.
TruAlt Bioenergy had listed at an 18.5% premium to its issue price, reflecting strong investor enthusiasm, following an IPO subscription of over 75 times.
However, the subsequent pullback indicates some profit-taking amid concerns over valuations, which analysts describe as relatively aggressive compared to peers in the renewable energy space.
What should investors do now?
Shivani Nyati, Head of Research at Swastika Investmart, recommended investors book partial profits while holding the remaining quantity with a stop loss of Rs 520 per share.
She noted that the company operates in a high-growth, policy-backed sector with strong demand for green energy and biofuels, supported by India’s push toward net-zero emissions and government blending mandates.
Meanwhile, Reliance Securities, which had earlier advised subscribing to the IPO, highlighted TruAlt’s diversified portfolio, strategic partnerships, and sound financial position, stating that it is well-placed to benefit from India’s growing focus on renewable and sustainable energy solutions.
The company has reported robust financial growth, with revenue rising 54% year-on-year to Rs 1,969 crore in FY25 and net profit surging nearly fivefold to Rs 147 crore from Rs 32 crore in FY24.
Also read: FPIs ramp up bearish bets to record levels, see Indian stocks falling further
EBITDA also increased to Rs 309 crore from Rs 188 crore. At the upper end of its price band, TruAlt’s valuation translates to roughly 29 times its FY25 earnings, which analysts say is higher than some established players in the sector. Its debt-to-equity ratio stood at 2.02, showing improvement as borrowings declined from the previous year.
( Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
TruAlt Bioenergy had listed at an 18.5% premium to its issue price, reflecting strong investor enthusiasm, following an IPO subscription of over 75 times.
However, the subsequent pullback indicates some profit-taking amid concerns over valuations, which analysts describe as relatively aggressive compared to peers in the renewable energy space.
What should investors do now?
Shivani Nyati, Head of Research at Swastika Investmart, recommended investors book partial profits while holding the remaining quantity with a stop loss of Rs 520 per share.
She noted that the company operates in a high-growth, policy-backed sector with strong demand for green energy and biofuels, supported by India’s push toward net-zero emissions and government blending mandates.
Meanwhile, Reliance Securities, which had earlier advised subscribing to the IPO, highlighted TruAlt’s diversified portfolio, strategic partnerships, and sound financial position, stating that it is well-placed to benefit from India’s growing focus on renewable and sustainable energy solutions.
The company has reported robust financial growth, with revenue rising 54% year-on-year to Rs 1,969 crore in FY25 and net profit surging nearly fivefold to Rs 147 crore from Rs 32 crore in FY24.
Also read: FPIs ramp up bearish bets to record levels, see Indian stocks falling further
EBITDA also increased to Rs 309 crore from Rs 188 crore. At the upper end of its price band, TruAlt’s valuation translates to roughly 29 times its FY25 earnings, which analysts say is higher than some established players in the sector. Its debt-to-equity ratio stood at 2.02, showing improvement as borrowings declined from the previous year.
( Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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