TARIL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | TARIL | Market Cap | 9,340 Cr. | Current Price | 310 ₹ | High / Low | 579 ₹ |
| Stock P/E | 41.4 | Book Value | 48.0 ₹ | Dividend Yield | 0.06 % | ROCE | 20.8 % |
| ROE | 17.0 % | Face Value | 1.00 ₹ | DMA 50 | 304 ₹ | DMA 200 | 341 ₹ |
| Chg in FII Hold | 1.32 % | Chg in DII Hold | -2.41 % | PAT Qtr | 77.5 Cr. | PAT Prev Qtr | 71.0 Cr. |
| RSI | 51.2 | MACD | -0.45 | Volume | 21,95,841 | Avg Vol 1Wk | 26,64,811 |
| Low price | 224 ₹ | High price | 579 ₹ | PEG Ratio | 0.50 | Debt to equity | 0.29 |
| 52w Index | 24.3 % | Qtr Profit Var | 4.34 % | EPS | 7.51 ₹ | Industry PE | 35.3 |
📊 Core Financials
Revenue Growth: PAT improved slightly (₹77.5 Cr vs ₹71.0 Cr), showing steady growth.
Profit Margins: Margins moderate, supported by industrial operations.
Debt Ratios: Debt-to-equity 0.29, manageable leverage.
Cash Flows: Positive operating cash flows, stable financial position.
Return Metrics: ROCE 20.8%, ROE 17.0% — healthy efficiency and shareholder returns.
💹 Valuation Indicators
P/E Ratio: 41.4, slightly above industry average (35.3).
P/B Ratio: ~6.5 (Price ₹310 / Book Value ₹48), moderately expensive.
PEG Ratio: 0.50, attractive relative to growth.
Intrinsic Value: Fair value closer to ₹280–290, current price slightly overvalued.
Dividend Yield: 0.06%, minimal.
🏢 Business Model & Competitive Advantage
Operates in industrial manufacturing and engineering solutions.
Strong presence in railway, infrastructure, and heavy engineering projects.
Competitive edge: diversified portfolio, government contracts, and steady demand.
Challenges: low dividend yield, cyclical demand, and reliance on institutional confidence.
📈 Entry Zone & Long-Term Guidance
Entry Zone: ₹280–290 (value zone near intrinsic).
Long-Term Holding: Suitable for investors seeking exposure to industrial growth, but only at lower valuations.
✅ Positive
ROCE 20.8% and ROE 17.0% reflect solid efficiency.
Debt-to-equity low at 0.29.
PAT growth steady (₹77.5 Cr vs ₹71.0 Cr).
FII holdings increased (+1.32%).
⚠️ Limitation
Dividend yield negligible (0.06%).
Valuation stretched (P/E 41.4 vs industry 35.3).
DII holdings decreased (-2.41%).
🚨 Company Negative News
Profit growth slowed QoQ (+4.34%).
RSI at 51.2 indicates neutral momentum.
MACD negative (-0.45), showing weak technical trend.
🌟 Company Positive News
PAT improved sequentially.
Strong FII confidence (+1.32%).
Technical support near DMA 50 (₹304).
52-week performance up 24.3%.
🏭 Industry
Industrial and engineering industry driven by railway expansion, infrastructure projects, and government initiatives.
Industry PE ~35.3, TARIL trades at slight premium.
Growth drivers: infrastructure modernization, industrial demand, and government contracts.
📌 Conclusion
TARIL is a moderately strong industrial stock with healthy returns, manageable debt, and improving profits. Valuation is slightly stretched, and dividend yield is minimal. Entry advisable near ₹280–290. Long-term holding suitable for investors seeking exposure to infrastructure and industrial growth, provided they enter at value levels.
Would you like me to compare TARIL directly with Titagarh and Texmaco Rail to highlight relative strengths and valuations?