TARIL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | TARIL | Market Cap | 10,032 Cr. | Current Price | 334 ₹ | High / Low | 579 ₹ |
| Stock P/E | 44.5 | Book Value | 48.0 ₹ | Dividend Yield | 0.06 % | ROCE | 20.8 % |
| ROE | 17.0 % | Face Value | 1.00 ₹ | DMA 50 | 299 ₹ | DMA 200 | 346 ₹ |
| Chg in FII Hold | 1.32 % | Chg in DII Hold | -2.41 % | PAT Qtr | 77.5 Cr. | PAT Prev Qtr | 71.0 Cr. |
| RSI | 60.4 | MACD | 13.6 | Volume | 69,09,881 | Avg Vol 1Wk | 1,00,38,320 |
| Low price | 224 ₹ | High price | 579 ₹ | PEG Ratio | 0.54 | Debt to equity | 0.29 |
| 52w Index | 31.1 % | Qtr Profit Var | 4.34 % | EPS | 7.51 ₹ | Industry PE | 37.9 |
📊 TARIL demonstrates solid fundamentals with ROCE at 20.8% and ROE at 17.0%, reflecting efficient capital use. EPS of 7.51 ₹ supports profitability, and quarterly PAT improved (77.5 Cr. vs 71.0 Cr.), showing steady growth. Debt-to-equity ratio of 0.29 indicates moderate leverage. Valuation is slightly stretched with P/E at 44.5 compared to industry average of 37.9, but PEG ratio of 0.54 suggests undervaluation relative to growth. Dividend yield remains negligible at 0.06%. Technical indicators (RSI 60.4, MACD 13.6) show stable momentum, with price trading above 50 DMA (299 ₹) but below 200 DMA (346 ₹), indicating mixed technical strength.
💡 Entry Price Zone: Attractive accumulation between 290 ₹ – 320 ₹ near DMA supports. Buying above 340 ₹ carries valuation risk.
📈 Long-Term Holding Guidance: TARIL is fundamentally strong and suitable for long-term holding (24–36 months). Investors should monitor earnings consistency and institutional flows. Holding is justified if profitability sustains and sector demand remains robust.
Positive
- Strong ROCE (20.8%) and ROE (17.0%).
- EPS of 7.51 ₹ supports profitability.
- PEG ratio of 0.54 indicates undervaluation relative to growth.
- Quarterly PAT improved (77.5 Cr. vs 71.0 Cr.).
- FII holdings increased (+1.32%), showing foreign investor confidence.
Limitation
- Dividend yield is negligible (0.06%).
- Quarterly profit variation (+4.34%) reflects modest earnings growth.
- DII holdings decreased (-2.41%), showing domestic caution.
- Price below 200 DMA (346 ₹), indicating resistance.
Company Negative News
- Modest profit growth despite revenue expansion.
- Domestic institutional investors reduced holdings significantly.
Company Positive News
- Quarterly PAT improved steadily.
- Strong foreign investor inflows (+1.32%).
Industry
- Industry PE at 37.9, while TARIL trades at 44.5, showing slight premium valuation.
- Engineering and industrial sector benefits from infrastructure demand and capital expansion.
Conclusion
✅ TARIL is a fundamentally strong candidate with undervaluation on PEG basis and healthy return metrics. Best suited for long-term investors who accumulate near 290–320 ₹. Exit opportunities may arise near 550–570 ₹ if momentum sustains. Conservative investors should monitor earnings stability before committing heavily.
Would you like me to extend this into a peer benchmarking overlay HTML (e.g., TARIL vs TRITURBINE, BHEL, and Thermax) to highlight relative efficiency and valuation positioning?