Tarini Internat. (538496)

Score breakdown: P/E: 3/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Low headline P/E of 6.87 could attract value screeners if current earnings are sustainable.
• Sales growth is positive at 2.86%, showing demand has not collapsed.
• Latest quarter is nominally profitable with ₹1 Cr net profit, though the basis is very thin.
• Small market cap of ₹53 Cr leaves room for significant growth only if fundamentals improve materially.

Concerns

• Profit growth is negative at -7.48%, so the low P/E may be misleading.
• ROCE of only 1.13% indicates very poor return on capital, with no evidence of a moat.
• Piotroski F-Score of 4/9 signals weak overall financial health.
• Zero dividend and missing data on book value, debt/equity, and promoter holding prevent a proper margin-of-safety calculation.

AI Analysis

I have to begin with an uncomfortable truth: I cannot value Tarini Internat. with confidence. The market cap is only ₹53 Cr, and the P/E is 6.87, which looks like value. But in the Graham tradition, a cheap multiple is not a sufficient reason to buy. Sales grew only 2.86%, while profit fell 7.48%. A business with almost no growth and shrinking earnings is not compounding. ROCE is 1.13%, so for every hundred rupees of capital employed, the company earns just over one rupee. That fails any test of economic moat or managerial capital allocation. The Piotroski F-score of 4/9 tells me the financial position is weak, not strong. There is no dividend to reward a patient shareholder, and no book value or debt/equity data to assess a margin of safety. The latest quarter shows sales of ₹1 Cr and net profit of ₹1 Cr, which is suspiciously thin; annualised, such figures are too small to base any projection on. Meanwhile, the stock trades at ₹40.06, the top of its 52-week range, after rising from ₹6.01. That is a 567% move for a business whose profit declined. This is the classic value trap setup: low P/E plus deteriorating fundamentals plus a speculative price spike. The PEG ratio of 2.40 is meaningless when earnings growth is negative. If I owned it, I would try to sell into strength. If I did not own it, I would wait for either a much lower price or clear evidence of improved returns on capital. I need more financial statements, management ownership, and balance sheet transparency. Until then, this is not a business I can call a good investment; it is an avoid.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer