Tarsons Products (TARSONS)
Slow GrowerFairStock Score: 18/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹360.3 |
| Market Cap | ₹1,917.02 Cr |
| P/E Ratio | 133.44 |
| ROCE | 6.91% |
| ROE | 5.23% |
| Dividend Yield | 0% |
| Profit Growth | -80.95% |
| Debt/Equity | 0.62 |
| Sales Growth | 22.46% |
| Promoter Holding | 47.3% |
| 52-Week Range | ₹164.45 — ₹374.4 |
| Sector | Healthcare Equipment & Supplies |
| Book Value | ₹119.92 |
Strengths
- Promoter holding at 47.30% provides ownership alignment
- Piotroski F-Score of 7/9 indicates sound fundamental health
- Sales and profit growth around 13% show steady, if modest, expansion
- Debt-to-equity of 0.63 is manageable
- Book value of ₹123.51 offers some downside reference point
Concerns
- Very low ROE of 5.23% and ROCE of 6.91% suggest weak capital efficiency
- P/E of 47.80 and PEG of 3.72 imply significant overvaluation relative to growth
- Latest quarter net profit margin is thin: ₹5 Cr profit on ₹108 Cr sales
- No dividend yield, so returns depend entirely on price appreciation
AI Analysis
When I look at Tarsons Products, I ask: what does the business earn on the capital shareholders have entrusted? The answer is uncomfortable. Return on equity is just 5.23% and ROCE is 6.91%. For a company asking me to pay 47.80 times earnings, that is not evidence of an exceptional franchise. Benjamin Graham would call this a lack of margin of safety. The company is growing—sales up 12.76% and profit up 12.93%—but the PEG ratio of 3.72 tells me I am paying far too much for that modest growth. The latest quarter shows ₹108 Cr sales but only ₹5 Cr net profit, roughly a 4.6% margin. That is a fragile earnings base. On the positive side, promoter holding at 47.30% aligns owners with management, and the Piotroski F-score of 7/9 suggests the company is not deteriorating on a fundamental level. Debt-to-equity of 0.63 is manageable, though not pristine. Book value ₹123.51 gives some asset support, but at ₹211.19, I am paying a 71% premium to book for a business earning 5% on equity. There is no dividend yield, so my only return depends on price appreciation, which is unlikely while valuation remains this rich. The share has fallen from ₹374.40 to ₹211.19, yet it still trades at 47.8 times earnings. The FairStock score of 9/100 reinforces my caution. This is not a bargain; it is a slow grower with niche potential but no demonstrated moat. I would wait for either a much lower price or a meaningful improvement in return on capital before considering an investment.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer