Tarsons Products Limited (TARSONS) AI Stock Analysis

• Market Cap: ₹10.34B
• Dividend Yield: 0.86%
• Average Volume (3M): 2.32K
• Price to Earnings (P/E): 61.6
• Beta (1Y): 0.90
• Revenue Growth: 14.37%
• EPS Growth: -40.47%
• Country: IN
• Employees: 823
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.50
• Shares Outstanding: 53,206,280
• 10 Day Avg. Volume: 1,556
• 30 Day Avg. Volume: 2,322
• PEG Ratio: -2.10
• Price to Book (P/B): 2.99
• Price to Sales (P/S): 4.79
• P/FCF Ratio: -34.16
• 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): 6.5
• Revenue Forecast (FY): ₹4.32B

• Rating: 55 Neutral
• Price Target: ₹197.00 ▼(-14.44% Downside)
• Action: Reiterated Date: 11/26/25
• Date: Action: Reiterated 11/26/25

Tarsons Products Limited shows strong revenue growth and operational efficiency, but faces significant challenges in profitability and free cash flow generation. The technical analysis indicates bearish momentum, with the stock trading below major moving averages and showing oversold conditions. Additionally, the high P/E ratio suggests overvaluation, while the low dividend yield offers limited income potential. These factors collectively contribute to a moderate overall stock score.

Positive Factors

Recurring consumables business model

Tarsons' core model sells disposable lab consumables to research, diagnostics and pharma labs. Recurring, repeat purchases and a broad product catalogue increase wallet share per customer. In-house manufacturing preserves margins and control, supporting durable revenue visibility.

Strong recent revenue growth

A ~32% year-over-year top-line gain signals expanding market penetration and product adoption across labs. Sustained revenue expansion over multiple quarters supports scaling benefits, better fixed-cost absorption and long-term growth optionality if the company maintains distribution and export traction.

Healthy gross and EBITDA margins

Gross margin above 30% and a strong EBITDA margin indicate structural operational efficiency in manufacturing and pricing power for consumables. These margins provide headroom to absorb cost inflation and fund reinvestment, making profit sustainability likelier if revenue momentum persists.

Negative Factors

Negative free cash flow

Despite operating cash conversion being strong relative to net income, negative free cash flow signals capital spending or working capital absorption outpacing cash generation. Persistent negative FCF can constrain reinvestment, dividend capacity and raise liquidity risks over the medium term.

Low ROE with moderate leverage

A 4.7% ROE indicates limited effectiveness in converting equity into shareholder returns. Coupled with moderate leverage (D/E 0.54), this suggests the firm isn't fully leveraging its capital base to drive higher returns, which may limit long-term shareholder value creation unless operational returns improve.

Profitability and EPS deterioration

Significant negative EPS growth and declining net income point to volatility in bottom-line performance despite revenue growth. This mismatch suggests margin pressure, one-time items, or rising costs that could persist, weakening earnings resilience and investor confidence over the medium term.

Tarsons Products Limited Business Overview & Revenue Model

Company Description

Tarsons Products Limited engages in the manufacturing and trading of plastic laboratory products and scientific instruments in India and internationally. The company's products include disposable plastic labware, centrifuge ware, cryo labware, liquid handling systems, and safety products and instruments; and bottles, carboys, measuring cylinder, cell culture products, electrophoresis, microscopy and microbiology products, vacuum desiccators, mini coolers, cryo boxes, breakers, test tube racks, pipette tips, petri dish, centrifuge tubes, cryogenic and storage vials, pasteur pipettes, vortex, and other products. Its products are used in molecular biology, cell culture, genomics, proteomics, and immunology. The company was incorporated in 1983 and is headquartered in Kolkata, India.

How the Company Makes Money

Tarsons makes money primarily by manufacturing and selling laboratory consumables (recurring-use products that need frequent replacement) to end customers such as research institutes, hospitals/diagnostic labs, pharmaceutical and biotech companies, and industrial quality-control labs. Revenue is generated from (1) domestic sales in India through a network of distributors/stockists and direct institutional/key-account customers, and (2) export sales to international customers, typically routed through channel partners/distributors in target markets. Earnings are supported by product-driven recurring demand (consumables purchased repeatedly as they are used up), breadth of product catalogue that increases wallet share per lab, and in-house manufacturing that captures value from production rather than trading. Specific details on revenue mix by product line, customer segment, or named partnerships are not available in the provided context and are therefore null.

Tarsons Products Limited Financial Statement Overview

Summary

Tarsons Products Limited exhibits strong revenue growth and operational efficiency, yet faces challenges in profitability and free cash flow generation. The company maintains a sound financial position with moderate leverage and a strong equity base, but needs to address its free cash flow situation to ensure long-term liquidity and shareholder value.

Income Statement

Tarsons Products Limited shows robust revenue growth and improving profitability. The revenue growth rate from 2024 to 2025 was approximately 32.4%, indicating strong business expansion. The gross profit margin in 2025 was about 34.4%, and the net profit margin was 7.6%, which, while positive, suggests room for improvement in cost management. The EBIT margin was 12.3%, and the EBITDA margin was 32.3%, reflecting good operational efficiency. However, the decline in net income from previous years signals some challenges.

Balance Sheet

The company's balance sheet indicates a solid financial structure with a debt-to-equity ratio of 0.54, suggesting moderate leverage. The return on equity for 2025 was 4.7%, which is relatively low, pointing to potential inefficiencies in generating returns for shareholders. The equity ratio of 58.4% indicates a healthy level of financial stability, with a strong equity base.

Cash Flow

Cash flow statements reveal challenges in free cash flow generation, with a negative free cash flow for 2025. The operating cash flow to net income ratio was 3.2, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio was negative, highlighting the need for better capital expenditure management. The company's free cash flow growth rate has been negative over the past year, suggesting potential liquidity concerns.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.02B	3.92B	2.96B	2.83B	3.01B	2.28B
Gross Profit	1.93B	1.35B	985.42M	2.18B	1.49B	1.54B
EBITDA	1.33B	1.27B	1.11B	1.42B	1.61B	1.09B
Net Income	205.67M	297.70M	426.40M	807.14M	1.01B	688.70M
Balance Sheet
Total Assets	11.64B	10.80B	9.72B	7.26B	5.44B	2.96B
Cash, Cash Equivalents and Short-Term Investments	313.56M	256.52M	226.11M	590.58M	774.42M	23.32M
Total Debt	3.96B	3.39B	2.69B	1.11B	216.65M	335.01M
Total Liabilities	5.37B	4.50B	3.59B	1.56B	543.96M	516.12M
Stockholders Equity	6.27B	6.30B	6.13B	5.69B	4.90B	2.44B
Cash Flow
Free Cash Flow	-267.75M	-550.87M	-816.28M	-1.14B	-485.02M	38.33M
Operating Cash Flow	444.51M	966.20M	1.03B	755.99M	834.67M	681.55M
Investing Cash Flow	-783.05M	-1.47B	-2.85B	-1.79B	-1.38B	-639.11M
Financing Cash Flow	321.34M	578.12M	1.36B	845.61M	1.30B	-272.23M

Tarsons Products Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 230.25
• 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:TARSONS, the sentiment is Negative. The current price of 230.25 is above the 20-day moving average (MA) of 194.57, above the 50-day MA of 205.67, and below the 200-day MA of 289.64, indicating a bearish trend. The MACD of -3.61 indicates Negative momentum. The RSI at 46.71 is Neutral, neither overbought nor oversold. The STOCH value of 62.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TARSONS.

Tarsons Products Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRMOVER	72 Outperform	₹29.02B	38.77	―	―	-8.29%	4.70%
HUHTAMAKI	64 Neutral	₹12.63B	13.53	―	0.95%	-1.59%	-75.34%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
STOVEKRAFT	61 Neutral	₹16.80B	114.54	―	0.50%	7.89%	32.07%
ICEMAKE	58 Neutral	₹12.94B	216.68	―	0.28%	33.81%	-39.04%
TARSONS	55 Neutral	₹10.34B	61.62	―	0.86%	14.37%	-40.47%