Tour. Fin. Corp. (TFCILTD)

FairStock Score: 40/100 — MIXED

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

Key Financials

Strengths

• Revenue and profit momentum: sales up 21.71% and net profit up 40.61%, with latest quarter profit of ₹32 Cr on ₹70 Cr sales.
• Piotroski F-Score of 7/9 signals solid fundamental health and improving operational efficiency.
• PEG of 0.87 indicates that the current P/E of 26.96 is somewhat justified by the growth rate.
• Moderate leverage: Debt/Equity of 0.82 is comfortable for a financial institution.

Concerns

• Promoter holding of only 3.85% raises serious corporate-governance and alignment-of-interest concerns.
• P/B of 2.95 vs an ROE of 10.43% means investors are paying a rich multiple for modest book-value returns.
• P/E of 26.96 and dividend yield of 0.85% leave limited margin of safety.
• FairStock Score of 40/100 is MIXED, and the wide 52-week range suggests instability.

AI Analysis

When I look at Tour. Fin. Corp., I am reminded that a wonderful business is not the same as a wonderful investment. Yes, the recent numbers catch my eye: sales grew 21.71%, profit grew 40.61%, and last quarter alone delivered ₹32 Cr profit on ₹70 Cr revenue. A Piotroski score of 7/9 confirms improving financial health, and a PEG of 0.87 suggests that at 26.96 times earnings, growth is not egregiously priced. That has the surface of a fast grower. But Ben taught me to measure a business by its returns on capital. Here ROE is 10.43% and ROCE is 10.67%—respectable, not wonderful. I am paying 2.95 times book value for a financial institution that earns barely ten percent on that book. Unless the high growth continues for many years, the margin of safety is thin. The 0.85% dividend yield is a small cushion. What bothers me most is the promoter holding of just 3.85%. I want owner-operators with their money beside mine. With that little skin in the game, I must demand even greater operational evidence and tighter governance. Fortunately, debt/equity is a reasonable 0.82, so the balance sheet is not reckless. I will not buy today; this is a watchlist candidate. If the stock falls closer to book value, or if it keeps compounding profit for several more quarters while promoters increase their stake, I will get interested. Until then, the high for the year was ₹119.35 and the low was ₹51.00; the wide range tells me this is a volatile lender. I prefer horses that don't jump around.

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