Tembo Global (TEMBO)

FairStock Score: 60/100 — STEADY

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

Key Financials

Strengths

• ROCE of 31.45% shows strong capital efficiency, well above typical small-cap levels.
• Sales growth of 49.50% and profit growth of 55.24% indicate powerful near-term momentum.
• Latest quarter sales of ₹251 Cr and net profit of ₹26 Cr support the recent growth trajectory.
• Piotroski F-Score of 7/9 suggests reasonably solid financial health and operating discipline.
• P/E of 10.41 and PEG of 0.20 make it look inexpensive if the current growth is durable.

Concerns

• Debt/equity of 0.99 means the balance sheet carries almost as much debt as equity, risky for a cyclical steel-linked business.
• Promoter holding of only 36.38% is low; alignment with minority shareholders is weaker than I'd prefer.
• P/B of 3.79 leaves a thin margin of safety for an asset-heavy, cyclical industry.
• 52-week range of ₹58.95 to ₹837.00 shows extreme price volatility, and a dividend yield of 0.38% provides little compensation while waiting.

AI Analysis

This is exactly the kind of stock that makes a value investor torn. On the screen, Tembo Global looks cheap: P/E of 10.41, ROCE of 31.45%, sales up 49.50% and profit up 55.24%. The PEG of 0.20 suggests the market is not paying anywhere near enough for that growth. The latest quarter of ₹251 Cr sales and ₹26 Cr profit gives some credibility, and a Piotroski F-Score of 7/9 tells me the company isn't obviously cooking the books. If this were a predictable consumer business, I would be very excited. But it is iron and steel products. That is the crux. Steel is cyclical and largely commodity-like; high profit growth in this industry can be the market's way of telling you you're near the top, not telling you to buy. The 52-week range of ₹58.95 to ₹837.00 is a warning sign in itself. I don't like paying 3.79 times book of ₹162.31 for an asset-heavy business. Debt-to-equity of 0.99 is too high; if the cycle turns, debt makes losses worse. Promoter holding of 36.38% is lower than I would want, and the dividend yield of 0.38% means no one is paying me to wait. ROE is marked unavailable, which bothers me—before paying nearly four times book, I need to see owner earnings clearly. Graham would demand margin of safety. At ₹615.25 with a market cap of ₹824 Cr, I don't have enough of it. This could be a fast grower for the next few quarters, but my classification is cyclical. I'd rather miss the next 20% upside than take the risk of a permanent capital loss when steel demand falters.

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