Tarapur Transformers Limited (TARAPUR) AI Stock Analysis

• Market Cap: ₹458.25M
• Dividend Yield: N/A
• Average Volume (3M): 19.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.41
• Revenue Growth: N/A
• EPS Growth: -85.42%
• Country: IN
• Employees: 6
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -0.12
• 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: ₹23.50 ▼(-22.75% Downside)
• Action: Reiterated Date: 12/03/25
• Date: Action: Reiterated 12/03/25

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 core equipment used by utilities and industrial power systems, a market tied to long-lived infrastructure investment. This creates recurring tender-based opportunities and structural demand that supports durable revenue visibility compared with cyclical consumer markets.

Improving cash generation

The reported turnaround in operating and free cash flow, with a strong operating-cash-to-net-income ratio, indicates improving internal cash generation. If sustained, this enhances capacity to service debt, fund maintenance capex and working capital, and reduces dependence on external financing.

Recent profitability improvements

Management has driven notable gains in net profit and EBIT margins from a prior low base, showing potential to extract efficiencies or improve pricing. Sustained margin improvement would support reinvestment, higher returns on equity, and stronger cash conversion over the medium term.

Negative Factors

High leverage

A high debt-to-equity ratio and heavy reliance on borrowing raise the company's financial risk profile. Elevated leverage increases interest costs, reduces resilience to order or demand shocks, and limits strategic flexibility to invest in growth or absorb cyclical downturns over the medium term.

Negative gross margins

A negative gross profit margin implies core manufacturing costs currently exceed product revenues, a structurally unsustainable position. Unless Tarapur materially improves input cost control, pricing or product mix, higher-level profitability gains may not be durable and long-term viability is at risk.

Small, volatile revenue base

Revenue and earnings are highly volatile and anchored to a very low base (growth flagged as 'Infinity'); EPS has swung sharply negative. Tender-driven, lumpy order flows and limited scale make future revenue, margin and cashflow outcomes unpredictable, constraining reliable expansion.

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 Transformers Limited primarily makes money by selling transformers (and related power equipment) to customers such as electric utilities, government/utility-owned power entities, and industrial users, typically via tender-based or negotiated supply contracts. Revenue is generally recognized from (1) manufacturing and supply of transformers—where pricing reflects transformer rating/capacity, technical specifications, materials (e.g., copper/aluminum, core steel), and delivery terms—and (2) project/order execution activities tied to inspection, testing, and dispatch milestones as specified in customer contracts. The company may also earn revenue from after-sales activities such as installation/commissioning support, repairs, refurbishment, and maintenance services for installed transformers; however, a breakdown of these revenue streams and their relative contribution is not available in the provided context and is therefore null. Information on significant partnerships, customer concentration, export mix, or other material earnings drivers is not available here and is therefore null.

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	Mar 2025	Mar 2024	Jun 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.00K	1.00K	1.60M	34.88M	25.34M	15.90M
Gross Profit	-6.87M	-7.33M	-11.71M	-3.75M	1.15M	-2.05M
EBITDA	38.20M	183.61M	-537.00K	-261.46M	73.27M	-254.44M
Net Income	19.36M	161.50M	-12.49M	-273.29M	61.28M	-266.40M
Balance Sheet
Total Assets	113.54M	119.55M	218.11M	225.21M	594.78M	520.07M
Cash, Cash Equivalents and Short-Term Investments	2.86M	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	110.87M	113.18M	371.32M	369.76M	509.98M	496.56M
Stockholders Equity	2.67M	6.36M	-153.22M	-144.56M	84.80M	23.52M
Cash Flow
Free Cash Flow	2.89M	255.72M	-1.21M	-133.71M	-13.13M	-6.97M
Operating Cash Flow	2.89M	255.72M	-1.21M	-133.57M	-13.13M	-6.97M
Investing Cash Flow	6.62M	4.50M	3.56M	125.86M	-19.56M	7.35M
Financing Cash Flow	-10.26M	-262.43M	-3.41M	-5.70M	33.42M	-455.00K

Tarapur Transformers Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TARAPUR, the sentiment is Negative. The current price of 30.42 is above the 20-day moving average (MA) of 26.25, above the 50-day MA of 27.43, and above the 200-day MA of 28.56, indicating a bearish trend. The MACD of -1.18 indicates Positive momentum. The RSI at 36.52 is Neutral, neither overbought nor oversold. The STOCH value of 23.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	₹86.10B	20.04	―	1.27%	15.87%	-4.28%
INDOTECH	68 Neutral	₹14.00B	16.63	―	―	34.48%	40.61%
TARIL	65 Neutral	₹83.13B	28.99	―	0.07%	33.60%	100.44%
LOKESHMACH	64 Neutral	₹3.98B	129.95	―	―	-37.98%	-119.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KECL	49 Neutral	₹5.25B	41.93	―	―	-11.25%	-48.96%
TARAPUR	48 Neutral	₹458.25M	-57.79	―	―	―	-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.