Transwarranty Finance Limited (TFL) AI Stock Analysis

• Market Cap: ₹782.09M
• Dividend Yield: N/A
• Average Volume (3M): 3.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• 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): 5.80
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: ₹13.50 ▼(-16.25% Downside)

The score is held down primarily by poor financial performance (declining revenue, heavy losses, negative cash flow, and elevated leverage). Technical indicators are moderately supportive (price above key moving averages with positive MACD), but valuation is unattractive/unclear due to negative earnings and no stated dividend yield.

Positive Factors

Business Model Strength

TFL's focus on warranty financing and insurance-backed products provides a steady revenue stream and positions it well in the consumer finance sector.

Market Position

Being a leading provider in consumer finance enhances TFL's market position, enabling it to capitalize on growing demand for financial solutions.

Revenue Diversification

Diversified revenue streams from financing, commissions, and fees reduce dependency on a single income source, supporting long-term stability.

Negative Factors

Declining Revenue

A significant revenue decline indicates challenges in maintaining market share and competitiveness, affecting long-term growth prospects.

Negative Profitability

Negative profitability metrics reflect operational inefficiencies and could hinder reinvestment and growth opportunities.

High Leverage

Elevated leverage increases financial risk, potentially impacting liquidity and the ability to invest in growth initiatives.

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 through multiple streams, primarily by offering warranty financing and insurance products to consumers and businesses. The company charges interest on the loans provided for warranty purchases, creating a steady income from the financing agreements. Additionally, TFL earns commission from insurance providers for facilitating warranty products, as well as from service fees associated with the administration of these products. The company may also engage in partnerships with manufacturers and retailers, providing them with financing options for their customers, thus expanding its reach and enhancing revenue through increased sales volume. Moreover, the growing demand for warranty and insurance products in various industries contributes significantly to TFL's earnings, as they capitalize on market trends and consumer needs.

Transwarranty Finance Limited Financial Statement Overview

Summary

Weak fundamentals across all statements: revenue declined sharply (down 38% latest period), profitability is heavily negative (net margin -44.64% with negative EBIT/EBITDA), leverage is elevated (debt-to-equity 1.32 with negative ROE), and liquidity is pressured by negative operating and free cash flow.

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: 16.12
• 50DMA: Negative
• 100DMA: Positive
• 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 16.12 is above the 20-day moving average (MA) of 14.96, above the 50-day MA of 14.68, and above the 200-day MA of 15.46, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 47.89 is Neutral, neither overbought nor oversold. The STOCH value of 32.63 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	76 Outperform	₹676.74M	20.18	―	―	-5.50%	-12.14%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MOTOGENFIN	59 Neutral	₹834.96M	53.74	―	―	10.72%	-27.59%
TIMESGTY	59 Neutral	₹2.27B	94.46	―	―	―	―
TCIFINANCE	50 Neutral	₹252.43M	6.50	―	―	797.65%	―
TFL	45 Neutral	₹782.09M	-14.07	―	―	-29.62%	-308.12%
VIJIFIN	44 Neutral	₹344.85M	29.32	―	―	39.46%	―

Transwarranty Finance Limited Corporate Events

Transwarranty Finance Files SEBI Dematerialisation Compliance Certificate for December Quarter

Transwarranty Finance Limited has submitted to the stock exchanges a quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the period ended 31 December 2025, as issued by its registrar and share transfer agent, MUFG Intime India Private Limited. The registrar confirmed that all securities received for dematerialisation during the quarter were duly processed, listed on the relevant stock exchanges, and that corresponding physical certificates were verified, mutilated and cancelled within prescribed timelines, underscoring the company’s adherence to regulatory requirements in handling its share capital and maintaining investor records.

Transwarranty Finance to Shut Trading Window Ahead of Q3 FY26 Results

Transwarranty Finance Limited has announced that its trading window for dealing in the company’s securities will be closed for all designated persons and their immediate relatives from January 1, 2026, until 48 hours after the declaration of its unaudited standalone and consolidated financial results for the quarter and period ending December 31, 2025. The move is in line with SEBI’s Prohibition of Insider Trading Regulations, 2015, reinforcing the company’s compliance framework and aiming to prevent any potential misuse of unpublished price-sensitive information by insiders ahead of its financial disclosure.