Tara Chand Infra (TARACHAND)
Slow GrowerScore breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹47.89 |
| Market Cap | ₹377.49 Cr |
| P/E Ratio | 13.53 |
| ROCE | 17.27% |
| ROE | 20.6% |
| Dividend Yield | 0.42% |
| Profit Growth | 10.5% |
| Debt/Equity | 0.93 |
| Sales Growth | 9.7% |
| Promoter Holding | 71.58% |
| 52-Week Range | ₹46.01 — ₹103.67 |
| Sector | Commercial Services & Supplies |
| Book Value | ₹18.93 |
Strengths
- Promoter holding at 71.58% aligns owner and minority interests.
- ROCE of 17.27% shows existing capital earns a reasonable return.
- Latest quarter net margin of ~7.25% (₹5 Cr profit on ₹69 Cr sales) indicates current profitability.
- Sales growth of 6.53% is positive, and stock is well below its 52-week high of ₹103.67.
Concerns
- Profit growth is flat at -0.38% despite sales growth, implying margin pressure.
- Piotroski F-score of 4/9 signals weak financial health.
- Valuation is rich: P/E 17.73, P/B 3.79, and PEG 2.72 for near-zero growth.
- Debt/equity of 0.96 leaves limited financial flexibility.
AI Analysis
Let me look at Tara Chand Infra the way I look at any business: can it generate growing earnings, does it have a moat, and is the price sensible? The immediate picture is mixed. Sales grew only 6.53%, but profit actually fell 0.38%. That is not compounding. For a slow grower, I expect a cheap price, but at ₹65.24 the stock trades at 17.73 times earnings and 3.79 times book value of ₹17.20. That gives me no margin of safety. ROCE of 17.27% is decent, but with debt/equity at 0.96, some of that return is borrowed. The Piotroski F-score of 4/9 worries me; it suggests the balance sheet and operating efficiency are not strengthening. The latest quarter, with ₹69 Cr sales and ₹5 Cr net profit, shows a 7.25% net margin, but one quarter is not a trend. Promoter holding of 71.58% is a positive; skin in the game matters. Still, a dividend yield of 0.33% is negligible, and a PEG ratio of 2.72 tells me the market is pricing in growth the numbers do not support. In Graham's language, price is what you pay, value is what you get. Here I struggle to see clear value with earnings flat and the stock down from its high of ₹103.67 but still not statistically cheap. This is not a wonderful business at a fair price; it is a mediocre grower at an uncertain price. I would wait, watch the debt, and demand a much lower entry or evidence of accelerating profit growth before acting.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer