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: -16.55%
• EPS Growth: -334.08%
• Country: IN
• Employees: 36
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): -0.16
• 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: 40 Underperform
• Price Target: ₹13.00 ▲(0.78% Upside)

Transwarranty Finance Limited's overall stock score is primarily impacted by its poor financial performance and valuation. The company faces significant financial challenges, including declining revenues, high leverage, and liquidity issues. Technical analysis indicates a bearish trend, further contributing to the low score. The absence of earnings call data and corporate events means these factors do not influence the score.

Transwarranty Finance Limited Business Overview & Revenue Model

Company Description

Transwarranty Finance Limited, a non-banking finance company, provides financial services to companies and retail clients in India. Its investment banking services comprise mergers and acquisitions, venture capital, private equity, joint ventures, corporate advisory, and business re-structuring; and corporate finance services consist of structured finance, rupee/foreign currency loans, external commercial borrowing, working capital facilities from banks, acquisition finance, stressed assets finance, and debt re-structuring. The company's trade finance services comprise letter of credit and clean bills discounting, inter corporate deposits, unsecured working capital loans, and import and export finance; and project finance services include financial structuring, project report and financial feasibility studies, raising project equity, and raising rupee and foreign currency loans for projects. In addition, it offers retail loans against security of gold; and online pocket loans. Further, the company provides retail stock broking and investment advisory services, depository participation, institutional broking, arbitrage, corporate restructuring, take over and offer for sale services, ESOPs, and certifications services, as well as listing services on National Stock Exchange and Bombay Stock Exchange, and buy back of shares; distributes mutual funds, IPO, and other financial products; manages initial public offers/follow on offers/rights issues and debt issues; places equity shares with QIP/private equity funds and preference shares; and valuates companies/enterprises/shares. Additionally, it is involved in the retail of commodities broking and insurance agency business. The company was founded in 1994 and is headquartered in Mumbai, India.

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 deeply negative net profit margins. The balance sheet is burdened with high leverage, and cash flows are under severe pressure, indicating liquidity concerns. Overall, the company needs strategic initiatives to improve its 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 2022	Dec 2022	Dec 2021
Income Statement
Total Revenue	148.27M	157.41M	111.47M	127.48M	94.06M	137.79M
Gross Profit	74.36M	76.53M	-3.29M	-19.87M	-20.61M	-9.79M
EBITDA	-30.84M	-15.97M	12.79M	-15.39M	-87.97M	-22.24M
Net Income	-38.24M	-54.08M	5.82M	-22.79M	-89.99M	-31.24M
Balance Sheet
Total Assets	0.00	1.00B	989.72M	1.03B	1.06B	944.61M
Cash, Cash Equivalents and Short-Term Investments	0.00	84.66M	14.20M	107.42M	154.82M	74.30M
Total Debt	0.00	411.52M	385.25M	427.34M	403.07M	432.46M
Total Liabilities	-352.10M	648.17M	643.21M	839.87M	727.32M	735.77M
Stockholders Equity	352.10M	310.92M	301.91M	142.13M	292.15M	164.69M
Cash Flow
Free Cash Flow	0.00	-47.95M	-149.69M	157.63M	-123.42M	-96.93M
Operating Cash Flow	0.00	-45.71M	-147.52M	158.65M	-121.97M	-95.97M
Investing Cash Flow	0.00	-2.26M	69.29M	-77.08M	17.42M	-51.74M
Financing Cash Flow	0.00	48.75M	-62.39M	-48.62M	164.68M	171.29M

Transwarranty Finance Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 12.9 is below the 20-day moving average (MA) of 13.61, below the 50-day MA of 14.65, and below the 200-day MA of 15.98, indicating a bearish trend. The MACD of -0.53 indicates Positive momentum. The RSI at 37.85 is Neutral, neither overbought nor oversold. The STOCH value of 31.96 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
HYBRIDFIN	69 Neutral	₹664.38M	20.71	―	―	-5.50%	-12.14%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MOTOGENFIN	58 Neutral	₹1.00B	140.31	―	―	7.97%	-51.43%
TCIFINANCE	49 Neutral	₹156.14M	4.46	―	―	797.65%	―
VIJIFIN	41 Neutral	₹421.80M	222.56	―	―	39.46%	―
TFL	40 Underperform	₹707.07M	-18.48	―	―	-16.55%	-334.08%

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.