Tarapur Transformers Limited (TARAPUR) AI Stock Analysis

• Market Cap: ₹542.88M
• Dividend Yield: N/A
• Average Volume (3M): 19.21K
• Price to Earnings (P/E): 27.9
• Beta (1Y): 1.06
• Revenue Growth: N/A
• EPS Growth: -85.42%
• Country: IN
• Employees: 6
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -0.23
• 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: ₹34.00 ▲(11.77% Upside)

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

Profitability Improvements

The company's recent profitability improvements suggest it is on a path to better financial health, which could enhance its competitive position and operational efficiency over time.

Positive Cash Flow Trends

Improved cash flow trends indicate better cash generation ability, which is crucial for funding operations and reducing reliance on external debt over the long term.

Diverse Revenue Streams

A diverse revenue model enhances stability and reduces risk by not relying on a single income source, supporting long-term business sustainability.

Negative Factors

High Leverage

High leverage poses financial risks and limits flexibility, potentially impacting the company's ability to invest in growth and weather economic downturns.

Negative Gross Profit Margin

Persistent negative gross margins suggest ongoing cost inefficiencies, which could hinder profitability and competitive positioning in the long run.

Volatile Income Statement

Volatility in financial performance can undermine investor confidence and complicate long-term strategic planning, affecting the company's growth prospects.

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: 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 29.58, below the 50-day MA of 32.57, and above the 200-day MA of 29.11, indicating a bearish trend. The MACD of -0.95 indicates Positive momentum. The RSI at 37.38 is Neutral, neither overbought nor oversold. The STOCH value of 21.26 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
INDOTECH	74 Outperform	₹15.88B	18.49	―	―	34.48%	40.61%
VOLTAMP	73 Outperform	₹71.67B	22.02	―	1.27%	15.87%	-4.28%
TARIL	65 Neutral	₹80.23B	30.25	―	0.07%	33.60%	100.44%
LOKESHMACH	64 Neutral	₹3.59B	-117.52	―	―	-37.98%	-119.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KECL	49 Neutral	₹6.23B	86.70	―	―	-11.25%	-48.96%
TARAPUR	48 Neutral	₹542.88M	27.94	―	―	―	-85.42%

Tarapur Transformers Limited Corporate Events

Tarapur Transformers Clarifies Stock Price Movements Amid Market Fluctuations

Tarapur Transformers Limited addressed recent significant price movements in its stock, attributing the changes to market conditions beyond its control. The company emphasized its commitment to regulatory compliance and transparency, ensuring all necessary disclosures are made in accordance with the SEBI Listing Regulations.