Tarapur Transformers Limited (TARAPUR) AI Stock Analysis

• Market Cap: ₹551.85M
• Dividend Yield: N/A
• Average Volume (3M): 19.21K
• Price to Earnings (P/E): 29.9
• Beta (1Y): 1.25
• Revenue Growth: N/A
• EPS Growth: -85.42%
• Country: IN
• Employees: 6
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): N/A
• Shares Outstanding: 19,500,011
• 10 Day Avg. Volume: 22,861
• 30 Day Avg. Volume: 19,209
• PEG Ratio: >-0.01
• Price to Book (P/B): 101.79
• Price to Sales (P/S): 647470.26
• P/FCF Ratio: 2.53
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: ₹28.00 ▼(-7.96% Downside)

The overall stock score is primarily influenced by the company's financial performance, which reflects high leverage and financial risks despite recent profitability improvements. Technical analysis indicates a positive short-term trend, but valuation concerns due to a high P/E ratio and lack of dividend yield weigh on the score.

Positive Factors

Essential infrastructure demand

Tarapur supplies transformers central to electricity transmission and industrial power systems. Structural electrification and grid upkeep create predictable, tender-driven demand for its products, supporting multi-month order visibility and a durable revenue base tied to infrastructure investment cycles.

Turnaround in operating cash flow

A recent positive shift in operating and free cash flow improves liquidity and reduces near-term refinancing needs. Sustained cash generation supports working-capital-intensive manufacturing, funds capex or debt servicing, and materially strengthens operational resilience over the coming months.

Improving profitability metrics

Reported increases in net profit and EBIT margins indicate management progress on pricing, mix, or overhead control. If sustained through consistent cost controls and execution, higher operational margins can convert cyclical wins into longer-term earnings stability.

Negative Factors

High financial leverage

A heavy reliance on debt and a low equity ratio raise refinancing and interest-rate sensitivity risks. High leverage constrains capital allocation, increases vulnerability to demand shocks, and can limit the firm's ability to invest in capacity or weather prolonged downturns.

Negative gross profit margin

Negative gross margins point to underlying issues in input costs, pricing, or production efficiency. Until unit economics improve, incremental revenue risks failing to translate into sustainable operating profits, undermining long-term margin recovery efforts.

Volatile, low revenue base

Reported 'infinite' growth driven by a low base signals revenue volatility rather than steady expansion. Earnings and cashflow improvements may not be durable absent a consistently larger order book, making forecasts and credit metrics more uncertain over the medium term.

Tarapur Transformers Limited Business Overview & Revenue Model

Company Description

Tarapur Transformers Limited engages in the manufacture, repair, refurbishment, and upgradation of power transformers in India. The company offers power transformers, such as systems, generator, auto, and furnace transformers, as well as rectifiers, railway duty, etc.; distribution transformers for utilities, boards, and private industries; and instrument transformers, including current and potential transformers. The company was incorporated in 1988 and is based in Mumbai, India.

How the Company Makes Money

TARAPUR generates revenue primarily through the sale of its transformers and related equipment. The company earns money by manufacturing and supplying transformers to various sectors, including utilities, infrastructure projects, and industrial enterprises. Key revenue streams include direct sales to customers, contracts for large-scale projects, and maintenance services for installed equipment. Additionally, TARAPUR may benefit from strategic partnerships with power companies and contractors that require reliable transformer solutions, which can lead to bulk orders and ongoing service agreements, thus contributing to stable cash flow.

Tarapur Transformers Limited Financial Statement Overview

Summary

Tarapur Transformers Limited exhibits a mixed financial performance with significant improvements in profitability metrics, albeit from a low base. The company's high leverage and reliance on debt pose financial risks, while the recent positive cash flow trends need to be sustained for long-term stability. The financial statements reflect a company in transition, with potential for growth if operational efficiencies and cost management are improved.

Income Statement

Tarapur Transformers Limited has shown significant volatility in its income statement metrics. The company reported a dramatic increase in net profit margin and EBIT margin in the latest year, driven by a substantial net income despite a low revenue base. However, the gross profit margin remains negative, indicating cost management issues. The revenue growth rate is marked as 'Infinity' due to a low base effect, which may not be sustainable.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage and potential financial risk. While the return on equity has improved, it is primarily due to a low equity base rather than operational efficiency. The equity ratio is low, suggesting a heavy reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

The cash flow statement shows a positive turnaround in operating and free cash flow, with a high operating cash flow to net income ratio. However, the sustainability of this improvement is questionable given the company's historical cash flow challenges. The free cash flow to net income ratio is stable, but the overall cash flow position remains fragile.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.00K	1.00K	1.60M	34.88M	25.34M	15.90M
Gross Profit	-7.16M	-7.33M	-11.71M	-3.75M	1.15M	-2.05M
EBITDA	38.15M	183.61M	-537.00K	-261.46M	73.27M	-254.44M
Net Income	17.01M	161.50M	-12.49M	-273.29M	61.28M	-266.40M
Balance Sheet
Total Assets	0.00	119.55M	218.11M	225.21M	594.78M	520.07M
Cash, Cash Equivalents and Short-Term Investments	5.59M	5.59M	11.41M	8.19M	29.18M	31.14M
Total Debt	0.00	103.09M	352.53M	352.39M	355.56M	321.63M
Total Liabilities	-6.36M	113.18M	371.32M	369.76M	509.98M	496.56M
Stockholders Equity	6.36M	6.36M	-153.22M	-144.56M	84.80M	23.52M
Cash Flow
Free Cash Flow	0.00	255.72M	-1.21M	-133.71M	-13.13M	-6.97M
Operating Cash Flow	0.00	255.72M	-1.21M	-133.57M	-13.13M	-6.97M
Investing Cash Flow	0.00	4.50M	3.56M	125.86M	-19.56M	7.35M
Financing Cash Flow	0.00	-262.43M	-3.41M	-5.70M	33.42M	-455.00K

Tarapur Transformers Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TARAPUR, the sentiment is Positive. The current price of 30.42 is above the 20-day moving average (MA) of 27.33, above the 50-day MA of 29.82, and above the 200-day MA of 28.73, indicating a neutral trend. The MACD of -0.55 indicates Negative momentum. The RSI at 58.06 is Neutral, neither overbought nor oversold. The STOCH value of 90.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:TARAPUR.

Tarapur Transformers Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VOLTAMP	73 Outperform	₹75.88B	23.09	―	1.27%	15.87%	-4.28%
INDOTECH	68 Neutral	₹13.23B	18.37	―	―	34.48%	40.61%
TARIL	65 Neutral	₹69.10B	25.66	―	0.07%	33.60%	100.44%
LOKESHMACH	64 Neutral	₹3.54B	-114.58	―	―	-37.98%	-119.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KECL	49 Neutral	₹5.38B	79.09	―	―	-11.25%	-48.96%
TARAPUR	48 Neutral	₹551.85M	29.91	―	―	―	-85.42%

Tarapur Transformers Limited Corporate Events

Tarapur Transformers Files SEBI Regulation 74(5) Compliance Certificate; No Demat Requests in Q3 FY25

Tarapur Transformers Limited has submitted to the stock exchanges a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended December 31, 2025, as issued by its registrar and share transfer agent, Bigshare Services Pvt. Ltd. The registrar confirmed that no dematerialisation requests for the company’s equity shares were received during the quarter, indicating there were no conversions of physical share certificates into electronic form in that period, a routine disclosure that underscores the company’s adherence to regulatory and depository requirements for its listed securities.