Transwarranty Finance Limited (TFL) AI Stock Analysis

• Market Cap: ₹707.07M
• Dividend Yield: N/A
• Average Volume (3M): 3.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.71
• Revenue Growth: -29.62%
• EPS Growth: -308.12%
• Country: IN
• Employees: 36
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): -0.23
• Shares Outstanding: 53,974,537
• 10 Day Avg. Volume: 3,642
• 30 Day Avg. Volume: 3,163
• PEG Ratio: 0.01
• Price to Book (P/B): 2.35
• Price to Sales (P/S): 4.65
• P/FCF Ratio: -15.27
• 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: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: ₹13.50 ▼(-6.90% Downside)

The most significant factor affecting the score is the company's poor financial performance, characterized by declining revenues, high leverage, and cash flow issues. Technical analysis also indicates a bearish trend, further impacting the score. The negative P/E ratio and lack of dividend yield contribute to a weak valuation, reinforcing the overall low score.

Positive Factors

Business Model

TFL's diversified product offerings in warranties and insurance provide a stable revenue base, reducing reliance on a single market segment and enhancing resilience against sector-specific downturns.

Revenue Streams

Multiple revenue streams, including partnerships and investment income, enhance financial stability and offer growth opportunities through diversified income sources.

Industry Position

By focusing on innovation and customer satisfaction, TFL strengthens its competitive position, potentially increasing market share and customer retention over time.

Negative Factors

Revenue Decline

A significant decline in revenue growth and profitability indicates potential challenges in maintaining market position and operational efficiency, affecting long-term sustainability.

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and manage economic downturns effectively.

Cash Flow Issues

Negative cash flows highlight liquidity issues, which could impede the company's ability to fund operations, service debt, and invest in future growth, threatening long-term viability.

Transwarranty Finance Limited Business Overview & Revenue Model

Company Description

Transwarranty Finance Limited (TFL) is a financial services company specializing in providing warranty and insurance solutions for various sectors, including automotive, consumer electronics, and appliances. The company offers a range of products, including extended warranties, service contracts, and insurance products designed to protect consumers and businesses from unforeseen repair and replacement costs. TFL aims to deliver value through innovative financial products that enhance customer satisfaction and loyalty.

How the Company Makes Money

Transwarranty Finance Limited generates revenue primarily through the sale of warranty and insurance products. The company's key revenue streams include premiums collected from customers purchasing extended warranties and service contracts, as well as fees associated with the administration and management of these products. Additionally, TFL may earn income from partnerships with manufacturers and retailers who offer their warranty services as part of product sales, thereby creating a commission-based revenue model. The company may also benefit from investment income generated from the reserves set aside for claims payouts, contributing to its overall earnings.

Transwarranty Finance Limited Financial Statement Overview

Summary

Transwarranty Finance Limited is facing significant financial challenges. The income statement shows declining revenues and profitability, with a deeply negative net profit margin. The balance sheet is burdened with high leverage, and cash flows are under pressure with negative operating and free cash flows. Strategic initiatives are needed to improve financial health.

Income Statement

Transwarranty Finance Limited has faced significant challenges in its income statement. The company has experienced negative revenue growth in recent years, with a notable decline of 38% in the latest period. Gross profit margins have been inconsistent, and the net profit margin is deeply negative at -44.64%, indicating substantial losses. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. Overall, the income statement shows a concerning trend of declining revenues and profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.32, suggesting significant leverage, which could pose financial risks. The return on equity is negative, indicating that the company is not generating returns for its shareholders. However, the equity ratio is relatively stable, showing that a reasonable portion of assets is financed by equity. The balance sheet reflects a need for improved financial stability and reduced leverage.

Cash Flow

Cash flow analysis indicates severe challenges, with negative operating and free cash flows. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is zero, highlighting cash flow issues. The free cash flow to net income ratio is slightly above 1, suggesting that cash flow is not supporting net income effectively. Overall, the cash flow statement underscores liquidity concerns and the need for better cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	125.20M	126.28M	111.47M	94.06M	127.48M	137.79M
Gross Profit	-9.25M	1.79M	-3.29M	-20.61M	-19.87M	-10.34M
EBITDA	-42.13M	-42.59M	12.79M	-87.97M	-15.39M	-22.24M
Net Income	-55.49M	-50.78M	5.82M	-89.99M	-22.79M	-31.24M
Balance Sheet
Total Assets	0.00	1.00B	989.72M	1.06B	1.03B	944.61M
Cash, Cash Equivalents and Short-Term Investments	0.00	61.29M	14.20M	154.82M	107.42M	71.56M
Total Debt	0.00	411.52M	385.25M	403.07M	427.34M	432.46M
Total Liabilities	-352.10M	648.17M	643.21M	727.32M	839.87M	735.77M
Stockholders Equity	352.10M	310.92M	301.91M	292.15M	142.13M	164.69M
Cash Flow
Free Cash Flow	0.00	-47.95M	-149.69M	-123.42M	157.63M	-96.93M
Operating Cash Flow	0.00	-45.71M	-147.52M	-121.97M	158.65M	-95.97M
Investing Cash Flow	0.00	-2.26M	69.29M	17.42M	-77.08M	-51.74M
Financing Cash Flow	0.00	48.75M	-62.39M	164.68M	-48.62M	171.29M

Transwarranty Finance Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.50
• 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:TFL, the sentiment is Negative. The current price of 14.5 is above the 20-day moving average (MA) of 13.19, above the 50-day MA of 14.06, and below the 200-day MA of 15.50, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 52.59 is Neutral, neither overbought nor oversold. The STOCH value of 80.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TFL.

Transwarranty Finance Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HYBRIDFIN	63 Neutral	₹664.38M	20.71	―	―	-5.50%	-12.14%
MOTOGENFIN	58 Neutral	₹1.00B	140.31	―	―	10.72%	-27.59%
TCIFINANCE	49 Neutral	₹156.14M	4.46	―	―	797.65%	―
VIJIFIN	44 Neutral	₹421.80M	222.56	―	―	39.46%	―
TFL	41 Neutral	₹707.07M	-18.48	―	―	-29.62%	-308.12%

Transwarranty Finance Limited Corporate Events

Transwarranty Finance Limited Approves Resolutions at 31st AGM

Transwarranty Finance Limited held its 31st Annual General Meeting on September 18, 2025, via video conferencing, where all proposed resolutions were approved by the requisite majority. The company submitted the scrutinizer’s report and voting results to the stock exchanges, reflecting compliance with SEBI regulations, which may positively impact its governance and stakeholder confidence.

Transwarranty Finance Limited Concludes 31st AGM with Positive Auditor Reports

Transwarranty Finance Limited held its 31st Annual General Meeting on September 18, 2025, via video conferencing, adhering to regulatory guidelines. The meeting, chaired by Kumar Nair, included discussions on the company’s operations and economic conditions, with no qualifications in the auditors’ reports. The company facilitated remote e-voting for shareholders, ensuring active participation and compliance with SEBI regulations.