Tarmat Ltd. (TARMAT) AI Stock Analysis

• Market Cap: ₹1.24B
• Dividend Yield: N/A
• Average Volume (3M): 5.70K
• Price to Earnings (P/E): 59.9
• Beta (1Y): 1.00
• Revenue Growth: 16.21%
• EPS Growth: N/A
• Country: IN
• Employees: 110
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Engineering & Construction
• EPS (TTM): 0.29
• Shares Outstanding: 24,064,255
• 10 Day Avg. Volume: 3,715
• 30 Day Avg. Volume: 5,701
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹55.00
• Price Target Upside: 4.82% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: ₹55.00 ▲(4.82% Upside)

Tarmat Ltd.'s overall stock score reflects a mix of financial stability and operational challenges. The strong equity base and improved leverage are offset by declining revenue and cash flow issues. Technical analysis indicates a neutral trend, while the high P/E ratio suggests overvaluation.

Positive Factors

Strong Equity Base

A strong equity base provides Tarmat Ltd. with a solid foundation for financial stability, enabling the company to weather economic fluctuations and invest in growth opportunities without excessive reliance on debt.

Improved Leverage

Improved leverage management indicates that Tarmat Ltd. is effectively managing its debt levels, which enhances its financial flexibility and reduces the risk associated with high debt burdens.

Net Income Improvement

An improvement in net income suggests that Tarmat Ltd. is enhancing its profitability, which could lead to better cash flow generation and increased capacity for reinvestment into the business.

Negative Factors

Declining Revenue

Declining revenue indicates potential challenges in market demand or competitive positioning, which could hinder Tarmat Ltd.'s ability to sustain growth and expand its market share.

Cash Flow Volatility

Volatile and negative cash flow can strain Tarmat Ltd.'s liquidity, limiting its ability to fund operations and invest in growth initiatives, potentially impacting long-term financial health.

Fluctuating Margins

Decreasing gross profit margins suggest challenges in managing costs or pricing power, which could affect Tarmat Ltd.'s profitability and competitive edge in the infrastructure sector.

Tarmat Ltd. Business Overview & Revenue Model

Company Description

Tarmat Ltd. (TARMAT) is a prominent player in the infrastructure development sector, specializing in construction and maintenance services for roads, highways, and airstrips. The company offers a range of core products and services including asphalt production, road surfacing, and civil engineering solutions, catering to both public and private sector clients. TARMAT is committed to quality and sustainability, ensuring that its projects meet the highest standards of safety and environmental responsibility.

How the Company Makes Money

Tarmat Ltd. primarily generates revenue through multiple key streams associated with its infrastructure projects. The company earns money by contracting for road construction and maintenance projects, which are often funded by government agencies and private enterprises. Key revenue streams include the sale of asphalt and other construction materials, as well as fees for engineering and consultancy services provided during project planning and execution. Additionally, TARMAT may benefit from long-term maintenance contracts that provide a steady income over time. Significant partnerships with government bodies and collaborations with construction firms enhance its project portfolio, contributing to its earnings.

Tarmat Ltd. Financial Statement Overview

Summary

Tarmat Ltd.'s financial performance is mixed. While the company has a strong equity base and improved leverage, declining revenue and fluctuating margins indicate operational challenges. The recent improvement in net income is a positive sign, but cash flow generation remains a concern.

Income Statement

Tarmat Ltd. has shown a mixed performance in its income statement. The gross profit margin has decreased over the years, indicating pressure on cost management. The net profit margin has fluctuated, with a significant improvement in the latest year, showing recovery potential. However, revenue has been declining over the past few years, which is a concern for growth prospects. The EBIT and EBITDA margins are relatively low, suggesting limited operational efficiency.

Balance Sheet

The balance sheet of Tarmat Ltd. reflects a strong equity base with a high equity ratio, indicating financial stability. The debt-to-equity ratio has improved, showing better leverage management. However, the return on equity has been inconsistent, reflecting challenges in generating returns from equity. Overall, the balance sheet is stable but shows room for improvement in profitability metrics.

Cash Flow

Cash flow analysis reveals significant volatility, with negative free cash flow in recent years, indicating potential liquidity challenges. The operating cash flow has been negative, suggesting issues in core business cash generation. The free cash flow to net income ratio is unfavorable, highlighting inefficiencies in converting earnings to cash. Despite these challenges, the company has managed financing activities effectively to support operations.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	841.73M	1.01B	1.44B	893.53M	1.81B	1.96B
Gross Profit	102.17M	69.02M	177.02M	134.40M	214.69M	184.81M
EBITDA	3.31M	38.38M	21.58M	2.54M	73.23M	72.00M
Net Income	-10.40M	18.69M	74.15M	-11.32M	45.77M	51.47M
Balance Sheet
Total Assets	0.00	2.36B	2.13B	1.98B	2.20B	2.33B
Cash, Cash Equivalents and Short-Term Investments	69.53M	98.27M	50.41M	57.06M	44.42M	44.83M
Total Debt	0.00	95.38M	59.52M	104.67M	433.60M	894.71M
Total Liabilities	-1.71B	625.90M	823.15M	684.02M	1.26B	1.71B
Stockholders Equity	1.71B	1.73B	1.31B	1.30B	935.75M	612.92M
Cash Flow
Free Cash Flow	0.00	-373.13M	878.09K	-32.48M	199.89M	238.35M
Operating Cash Flow	0.00	-95.96M	955.60K	-32.01M	202.54M	264.19M
Investing Cash Flow	0.00	-271.68M	-96.10K	136.00K	276.51M	-19.35M
Financing Cash Flow	0.00	408.83M	-801.04K	38.53M	-486.94M	-238.74M

Tarmat Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 52.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TARMAT, the sentiment is Negative. The current price of 52.47 is below the 20-day moving average (MA) of 53.29, below the 50-day MA of 55.16, and below the 200-day MA of 60.11, indicating a bearish trend. The MACD of -0.91 indicates Negative momentum. The RSI at 45.80 is Neutral, neither overbought nor oversold. The STOCH value of 44.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TARMAT.

Tarmat Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FIBERWEB	69 Neutral	₹1.29B	7.51		―	31.77%	85.86%
Sector *	61 Neutral	$10.48B	7.52	-0.05%	2.87%	2.87%	-36.73%
TARMAT	51 Neutral	₹1.24B	59.92		―	16.21%	―
INDIANACRY	―	₹1.08B	―		―	―	―
INSILCO	―		―		―	―	―
SALSTEEL	50 Neutral	₹2.56B	68.82		―	4.71%	-3228.92%
MADHUCON	41 Neutral	₹513.61M	―		―	-49.78%	-1560.10%

Tarmat Ltd. Corporate Events

Tarmat Ltd. Confirms Compliance with SEBI Regulations for Q2 2025

Tarmat Ltd. has announced the issuance of a certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the quarter ending June 30, 2025. This certificate, issued by Big Share Services Pvt. Ltd., confirms the dematerialization of securities and their listing on the stock exchange, ensuring compliance with regulatory requirements and maintaining transparency for stakeholders.