Tega Inds. (TEGA)

FairStock Score: 17/100 — RISKY

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham-style investor, I look for a durable business at a sensible price. Tega Inds. has some attractive pieces: debt/equity is only 0.12, ROCE is 17.80%, promoters own 67.27%, and five-year revenue CAGR is 19.06%. It also generated ₹66 Cr free cash flow. But the current picture is less comforting. Sales growth is -1.70%, profit growth is -63.60%, ROE is just 5.94%, and the latest quarter shows ₹404 Cr sales but only ₹20 Cr net profit. That suggests earnings quality and momentum have weakened. The Piotroski F-Score of 3/9 and FairStock Score of 17/100 confirm a fragile setup. Valuation is the biggest hurdle: at ₹1703.80, market cap ₹12,800 Cr, P/E 454.35, and P/B 3.79 against book value ₹449.93, the market is pricing in a very optimistic future. Graham would demand a margin of safety; here the earnings yield is negligible, and dividend yield is only 0.12%. Buffett might appreciate the low debt and promoter stake, but he would ask whether the company has a moat. Industrial products can be cyclical and competitive; no clear moat data given. The 52-week range ₹1474–₹2197.50 shows volatility. With revenue and profit declining, a 454 P/E is speculative. My conclusion: a cyclical industrial firm with a strong balance sheet but poor current earnings and an expensive price. I would wait for profit recovery, sales stabilization, and a far lower valuation before considering it.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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