TARIL - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.2

📊 Core Financials Breakdown

Profitability

ROCE: 24.6% and ROE: 20.0% — excellent efficiency, well above industry norms.

EPS: ₹7.64, with a massive 227% quarterly profit variation, indicating strong but volatile earnings.

Debt-to-equity: 0.21 — low leverage, suggesting prudent financial management.

Dividend Yield: 0.04% — negligible, not a draw for income-focused investors.

Institutional Sentiment

FII holding declined (-0.39%) and DII holding dropped (-1.18%) — cautious stance from institutions.

💰 Valuation Metrics

Metric Value Insight

P/E Ratio 68.8 High vs. industry average (49.4) — reflects growth optimism.

P/B Ratio ~12.9 Elevated, but typical for high-growth industrials.

PEG Ratio 0.50 Attractive — suggests undervaluation relative to earnings growth.

Intrinsic Value ~₹480–₹510 (est.) Current price of ₹520 is slightly above fair value.

🧠 Business Model & Competitive Edge

Core Operations: Design and manufacture of power transformers, distribution transformers, and rectifiers.

Strengths

Strong revenue growth — up 59.35% YoY to ₹20.19 billion

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High gross margin of 31.44% and profit margin of 10.61%

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EPS beat analyst estimates by 11.78%

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Challenges

Recent PAT decline from ₹74.2 Cr. to ₹60.2 Cr.

Institutional selling and reduced trading volume.

📈 Entry Zone & Technicals

DMA 50: ₹506, DMA 200: ₹477 — price is above both, signaling short-term strength.

RSI: 55.9 — neutral zone.

MACD: 3.57 — bullish crossover.

📌 Entry Zone: ₹490–₹510 — ideal for accumulation on dips.

🕰️ Long-Term Holding Guidance

Outlook: Strong fundamentals, improving margins, and scalable business model make TARIL a promising long-term play.

2026 Target: ₹600–₹720

2030 Target: ₹950–₹1,200

Holding Strategy: Suitable for long-term investors focused on India’s power infrastructure and electrification growth. Accumulate during technical weakness and hold through cycles.

You can explore detailed financial metrics on StockAnalysis

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or review performance insights from StockInvest

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stockinvest.us

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stockanalysis.com

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