Taylormade Renew (541228)
TurnaroundFairStock Score: 43/100 — MIXED
Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹496.8 |
| Market Cap | ₹551.1 Cr |
| P/E Ratio | 28.46 |
| ROCE | 21.76% |
| ROE | 6.85% |
| Dividend Yield | 0% |
| Profit Growth | 89.74% |
| Debt/Equity | — |
| Sales Growth | -7.32% |
| 52-Week Range | ₹87.8 — ₹496.8 |
| Sector | Industrial Manufacturing |
| Book Value | ₹55.23 |
Strengths
- Strong ROCE of 21.76% suggests efficient use of operating capital.
- Profit growth of 89.74% and PEG of 0.32 show meaningful earnings momentum if sustained.
- Latest quarter net margin of ~26.7% (₹4 Cr profit on ₹15 Cr sales) indicates good pricing or cost control.
- Piotroski F-Score of 6/9 points to broadly acceptable financial health.
Concerns
- ROE of only 6.85% is too low to justify a P/B of 9x against book value of ₹55.23.
- Sales declined 7.32%, so the profit surge may not be durable.
- P/E of 28.46, zero dividend yield, and a 52-week rise from ₹87.80 to ₹496.80 leave little margin of safety.
- Debt/equity and promoter holding are not disclosed, limiting governance and leverage assessment.
AI Analysis
As a value investor, I look for durable earnings power and a margin of safety. Taylormade Renew fails on both counts today. The market cap is ₹551 Cr, the stock trades at 28.46 times earnings and 9 times book value, yet the business earned only 6.85% on equity. That is a poor trade: I am paying a princely multiple for an ordinary return on capital. ROCE of 21.76% tells me operating assets are productive, but with sales down 7.32%, this looks like margin-driven improvement, not demand-led growth. The 89.74% profit growth sounds wonderful, and the PEG of 0.32 flatters the price, but growth built on a shrinking topline is fragile. Latest quarter sales of ₹15 Cr generated ₹4 Cr profit—a 26.7% margin—but I cannot build a cathedral on one brick. No dividend means I must rely entirely on Mr. Market, and with the stock up from ₹87.80 to ₹496.80 in 52 weeks, much optimism is already priced in. Debt/equity is not disclosed, promoter holding is not disclosed; I simply cannot check the owner-manager alignment or financial risk. The Piotroski score of 6/9 is acceptable, not exciting. At 28 times earnings, the margin of safety is thin. I would need to see revenue growth resume, consistent margin discipline, and a less euphoric price. This is not a wonderful company at a fair price; it is a possible turnaround at a demanding price. I prefer to wait.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer