Tarsons Products Limited (TARSONS) AI Stock Analysis

• Market Cap: ₹10.32B
• Dividend Yield: 0.86%
• Average Volume (3M): 2.32K
• Price to Earnings (P/E): 50.2
• Beta (1Y): 0.77
• Revenue Growth: 14.37%
• EPS Growth: -40.47%
• Country: IN
• Employees: 823
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.60
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ₹198.00 ▼(-14.01% Downside)

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 business sells consumable labware used repeatedly in research, diagnostics and QC labs. Recurring replacement demand from academia, hospitals and pharma provides predictable, repeatable revenue streams and reduces sensitivity to one-off order cycles, supporting durable top-line stability.

Robust revenue growth and healthy margins

Strong year-over-year revenue growth combined with healthy gross and EBITDA margins indicates solid product mix, pricing power and operational efficiency. These characteristics support reinvestment in capacity and R&D, and if sustained, underpin durable profit generation and scalable growth over the medium term.

Moderate leverage and strong equity base

A debt-to-equity of ~0.54 and an equity ratio near 58% show a conservative capital structure that limits refinancing stress. This financial strength provides capacity for targeted capex or geographic expansion without excessive leverage, supporting strategic investments while preserving balance-sheet resilience.

Negative Factors

Negative free cash flow

Reported negative free cash flow signals that operating cash generation isn’t covering capex and working capital needs. Persistently negative FCF can force external financing, limit organic investment capacity, and constrain shareholder returns, posing a structural liquidity risk if not remediated.

Earnings contraction / EPS decline

A steep EPS decline despite revenue growth suggests margin pressure, higher operating costs, or one-off charges reducing profitability. Continued EPS contraction undermines return metrics and investor confidence and could indicate structural cost or pricing issues that need operational fixes to restore durable earnings power.

Low return on equity

An ROE of ~4.7% implies limited efficiency in converting equity into profits compared with higher-return peers. Low ROE constrains long-term shareholder value creation and suggests management must either improve margins, increase asset turnover, or optimize capital allocation to lift sustainable returns.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Positive
• RSI: Positive
• 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 210.13, above the 50-day MA of 221.17, and below the 200-day MA of 313.49, indicating a bearish trend. The MACD of -9.36 indicates Positive momentum. The RSI at 25.06 is Positive, neither overbought nor oversold. The STOCH value of 27.42 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	₹30.28B	44.28	―	―	-8.29%	4.70%
HUHTAMAKI	66 Neutral	₹13.56B	13.62	―	0.95%	-1.59%	-75.34%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
ICEMAKE	58 Neutral	₹11.45B	75.39	―	0.28%	33.81%	-39.04%
STOVEKRAFT	55 Neutral	₹16.34B	43.68	―	0.50%	7.89%	32.07%
TARSONS	55 Neutral	₹10.32B	50.20	―	0.86%	14.37%	-40.47%

Tarsons Products Limited Corporate Events

Tarsons Products Limited Releases Investor Presentation for Q2 2025

Tarsons Products Limited has released its Investor Presentation for the second quarter and half year ending September 30, 2025. This presentation, which is available on the company’s website, provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.