Tilaknagar Inds. (TI)

FairStock Score: 48/100 — MIXED

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

Key Financials

AI Analysis

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

Tilaknagar Industries is an interesting study in growth versus price. The top line jumped nearly 95% in the latest period, and the company earns a ROCE of 28.19%, with an ROE of 16.47%. That is a genuinely good capital efficiency story. The balance sheet is almost debt-free, with debt/equity of 0.02, and a Piotroski F-score of 7 out of 9 suggests the financial health is reasonably sound. In Graham's terms, these are encouraging fundamentals. But I must be disciplined. The latest quarter tells a different tale: sales were ₹664 Cr, yet the company lost ₹105 Cr. That is a red flag. How can revenue grow so fast and profit turn negative? It suggests that expansion is being bought with lower margins, higher costs, or some non-operating write-off. As an investor, I don't pay for yesterday's growth; I pay for tomorrow's cash flows. At ₹466.70, I am asked to pay 39.7 times earnings and 15.5 times book value, when book value is only ₹30.15. That is a high price for any business. The PEG ratio of 0.70 is seductive, but profit growth of 18.69% is far behind sales growth of 94.97%. I also notice promoter holding is just 31.71%, and the dividend yield is a negligible 0.22%. The FairStock score of 48 echoes my own feeling: mixed. This is a fast grower, but the margin of safety is thin. I would prefer to watch from the sidelines until the latest quarter's loss is explained and profit follows sales.

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