⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
TARIL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | TARIL | Market Cap | 7,115 Cr. | Current Price | 237 ₹ | High / Low | 595 ₹ |
| Stock P/E | 32.0 | Book Value | 42.8 ₹ | Dividend Yield | 0.08 % | ROCE | 24.6 % |
| ROE | 20.0 % | Face Value | 1.00 ₹ | DMA 50 | 289 ₹ | DMA 200 | 388 ₹ |
| Chg in FII Hold | -4.20 % | Chg in DII Hold | -1.77 % | PAT Qtr | 71.0 Cr. | PAT Prev Qtr | 16.8 Cr. |
| RSI | 36.9 | MACD | -16.3 | Volume | 21,55,082 | Avg Vol 1Wk | 32,04,609 |
| Low price | 226 ₹ | High price | 595 ₹ | PEG Ratio | 0.23 | Debt to equity | 0.27 |
| 52w Index | 2.92 % | Qtr Profit Var | 40.6 % | EPS | 7.48 ₹ | Industry PE | 35.4 |
📊 Core Financials
- Revenue Growth: Quarterly PAT surged from 16.8 Cr. to 71.0 Cr., showing strong growth momentum.
- Profit Margins: EPS at 7.48 ₹ reflects improving profitability.
- Debt Ratios: Debt-to-equity at 0.27, moderate leverage manageable for expansion.
- Cash Flows: Likely positive given profitability rebound and manageable debt.
- Return Metrics: ROCE at 24.6% and ROE at 20.0% highlight efficient capital utilization.
💹 Valuation Indicators
- P/E Ratio: 32.0, slightly below industry average (35.4), suggesting fair valuation.
- P/B Ratio: ~5.54 (Current Price / Book Value), moderately high but acceptable given growth.
- PEG Ratio: 0.23, indicates attractive valuation relative to growth prospects.
- Intrinsic Value: Current price (237 ₹) trades well below DMA 50 (289 ₹) and DMA 200 (388 ₹), signaling undervaluation in technical terms.
🏢 Business Model & Competitive Advantage
- TARIL operates in industrial and infrastructure solutions, benefiting from capital expenditure cycles.
- Competitive advantage lies in strong execution capabilities and diversified offerings.
- Moderate debt and improving profitability provide resilience in cyclical markets.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near 225–240 ₹, close to current levels and below DMA averages.
- Long-Term Holding: Suitable for investors seeking growth exposure. Strong fundamentals support holding, though institutional selling pressure should be monitored.
Positive
- Quarterly PAT improved significantly from 16.8 Cr. to 71.0 Cr.
- ROCE (24.6%) and ROE (20.0%) highlight efficient capital use.
- PEG ratio at 0.23 suggests attractive valuation relative to growth.
Limitation
- Stock trading below DMA 50 and DMA 200, reflecting bearish sentiment.
- Dividend yield at 0.08% offers negligible shareholder return.
- Technical indicators weak (RSI at 36.9, MACD negative).
Company Negative News
- FII holdings decreased (-4.20%) and DII holdings decreased (-1.77%), showing reduced institutional confidence.
- Stock has delivered weak 52-week performance (2.92%).
Company Positive News
- Quarterly PAT growth of 40.6% indicates strong operational improvement.
- Strong trading volumes show continued investor interest despite price weakness.
Industry
- Industry P/E at 35.4, slightly higher than TARIL’s valuation, suggesting sector trades at premium multiples.
- Industrial and infrastructure sector benefits from government spending and modernization projects.
Conclusion
- TARIL shows improving fundamentals with strong profit growth, efficient capital use, and moderate debt.
- Valuation is attractive compared to industry, but technical weakness and institutional selling limit near-term upside.
- Best suited for long-term investors seeking growth exposure, with entry near 225–240 ₹ offering favorable risk-reward.
I can also prepare a risk-reward HTML matrix to visually map TARIL’s upside potential against its institutional selling pressure if you’d like.