Tarsons Products Limited (TARSONS) AI Stock Analysis

• Market Cap: ₹10.07B
• 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: ₹194.00 ▼(-15.74% 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 revenue comes from consumable labware that is repeatedly purchased by research, diagnostics and industrial labs. This creates durable, repeatable revenue streams, reduces customer churn risk, and supports predictable demand over months as labs continuously replenish disposables.

Strong revenue growth and margins

Recent year-on-year revenue expansion and healthy gross and EBITDA margins indicate effective scale and cost controls in manufacturing. Sustained top-line growth with double-digit operating margins supports reinvestment capacity and competitive pricing flexibility over the medium term.

Moderate leverage & strong equity base

A debt-to-equity around 0.54 and an equity ratio above 50% point to moderate leverage and financial stability. This balance-sheet posture preserves borrowing capacity for capex or working capital needs and reduces solvency risk during cyclical pressures over the next several months.

Negative Factors

Negative free cash flow

The company reported negative free cash flow for 2025 despite operating cash strength, implying capex or working capital outlays outpaced cash generation. Persistent negative FCF can strain liquidity, limit organic investments, and constrain shareholder returns if not reversed within months.

Low return on equity

ROE near 4.7% is low given the company's growth profile and strong equity base, signaling potential inefficiency in converting shareholder capital into profits. If ROE remains depressed, it undermines long-term shareholder value creation and could indicate suboptimal capital allocation.

Declining net income and EPS

A sharp negative EPS growth and noted decline in net income point to margin or expense pressures despite revenue gains. Continued erosion of net income reduces internal funding for growth, weakens returns, and raises questions about sustainable profitability over the coming quarters.

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 generates revenue primarily through the sale of its laboratory plasticware and consumables to various sectors including pharmaceuticals, biotechnology, academic institutions, and research laboratories. The company operates a direct sales model alongside a network of distributors, enabling it to reach a broad customer base both domestically and internationally. Key revenue streams include bulk orders from institutional clients, ongoing contracts with research organizations, and collaborations with educational institutions for laboratory supplies. Additionally, TARSONS invests in product development and innovation, which helps maintain a competitive edge and attract new customers. Strategic partnerships with global suppliers and participation in trade shows also contribute to brand visibility and sales growth.

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	3.99B	3.92B	2.96B	2.83B	3.01B	2.28B
Gross Profit	2.31B	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	275.36M	297.70M	426.40M	807.14M	1.01B	688.70M
Balance Sheet
Total Assets	0.00	10.80B	9.72B	7.26B	5.44B	2.96B
Cash, Cash Equivalents and Short-Term Investments	256.52M	256.52M	226.11M	590.58M	774.42M	23.32M
Total Debt	0.00	3.39B	2.69B	1.11B	216.65M	335.01M
Total Liabilities	-6.30B	4.50B	3.59B	1.56B	543.96M	516.12M
Stockholders Equity	6.30B	6.30B	6.13B	5.69B	4.90B	2.44B
Cash Flow
Free Cash Flow	0.00	-550.87M	-816.28M	-1.14B	-485.02M	38.33M
Operating Cash Flow	0.00	966.20M	1.03B	755.99M	834.67M	681.55M
Investing Cash Flow	0.00	-1.47B	-2.85B	-1.79B	-1.38B	-639.11M
Financing Cash Flow	0.00	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 198.84, above the 50-day MA of 208.81, and below the 200-day MA of 293.55, indicating a bearish trend. The MACD of -4.99 indicates Negative momentum. The RSI at 42.22 is Neutral, neither overbought nor oversold. The STOCH value of 54.59 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	₹29.23B	38.77	―	―	-8.29%	4.70%
HUHTAMAKI	64 Neutral	₹13.00B	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	₹15.81B	114.54	―	0.50%	7.89%	32.07%
ICEMAKE	58 Neutral	₹13.23B	216.68	―	0.28%	33.81%	-39.04%
TARSONS	55 Neutral	₹10.07B	61.62	―	0.86%	14.37%	-40.47%