TBOTEK - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | TBOTEK | Market Cap | 13,632 Cr. | Current Price | 1,255 ₹ | High / Low | 1,765 ₹ |
| Stock P/E | 285 | Book Value | 75.6 ₹ | Dividend Yield | 0.00 % | ROCE | 14.4 % |
| ROE | 10.3 % | Face Value | 1.00 ₹ | DMA 50 | 1,253 ₹ | DMA 200 | 1,396 ₹ |
| Chg in FII Hold | -1.14 % | Chg in DII Hold | 1.33 % | PAT Qtr | 11.9 Cr. | PAT Prev Qtr | 9.88 Cr. |
| RSI | 55.4 | MACD | 21.4 | Volume | 46,416 | Avg Vol 1Wk | 61,035 |
| Low price | 1,004 ₹ | High price | 1,765 ₹ | PEG Ratio | 12.3 | Debt to equity | 0.12 |
| 52w Index | 33.0 % | Qtr Profit Var | 4.58 % | EPS | 4.24 ₹ | Industry PE | 44.2 |
📊 TBOTEK (TBO Tek Ltd.) shows moderate fundamentals with ROCE of 14.4% and ROE of 10.3%, supported by low debt-to-equity (0.12). However, valuations are extremely stretched with a P/E of 285 compared to industry average of 44.2, and PEG ratio of 12.3 highlights expensive growth expectations. EPS remains weak at ₹4.24, and dividend yield is 0%, offering no income support. Quarterly PAT growth (₹9.88 Cr → ₹11.9 Cr) is modest at 4.58%. Technical indicators (RSI 55.4, MACD 21.4) suggest neutral-to-positive momentum, but price trading below 200 DMA (₹1,396) reflects medium-term weakness.
💰 Ideal Entry Price Zone: ₹1,050 – ₹1,150 (aligned with valuation comfort and support near 200 DMA).
📈 Exit / Holding Strategy: Medium-term holding of 1–2 years; consider partial profit booking near ₹1,600–₹1,650 resistance unless earnings improve significantly.
✅ Positive
- ROCE (14.4%) and ROE (10.3%) show moderate efficiency.
- EPS of ₹4.24 provides earnings base.
- Quarterly PAT growth (₹9.88 Cr → ₹11.9 Cr).
- DII holdings increased by 1.33%, showing domestic investor confidence.
- Low debt-to-equity ratio (0.12) ensures financial stability.
⚠️ Limitation
- Extremely high P/E (285) compared to industry average (44.2).
- PEG ratio (12.3) indicates poor growth-adjusted valuation.
- Dividend yield at 0% offers no income support.
- FII holdings decreased by 1.14%, showing reduced foreign interest.
- Modest quarterly profit variation (+4.58%).
📉 Company Negative News
- Valuation stretched relative to peers.
- Weak institutional support from foreign investors.
📈 Company Positive News
- Sequential PAT growth and stable technical indicators.
- Domestic institutional investors increasing stake.
- Stock trading near 50 DMA (₹1,253), showing technical support.
🏭 Industry
- Technology sector trading at PE 44.2, offering better valuation levels than TBOTEK.
- Industry supported by digital transformation and IT services demand.
🔎 Conclusion
TBOTEK is a speculative candidate for medium-term investment. Entry near ₹1,050–₹1,150 offers better risk-reward. Hold for 1–2 years with profit booking near ₹1,600–₹1,650 resistance. While ROE/ROCE and earnings growth are positives, extremely high valuations and modest profitability limit long-term attractiveness. Sustained earnings improvement is essential for long-term portfolio inclusion.