Tilaknagar Inds. (TI)
Fast GrowerFairStock Score: 48/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹568.75 |
| Market Cap | ₹14,057.84 Cr |
| P/E Ratio | 39.71 |
| ROCE | 28.19% |
| ROE | 16.47% |
| Dividend Yield | 0.18% |
| Profit Growth | -72% |
| Debt/Equity | 0.77 |
| Sales Growth | 155.7% |
| Promoter Holding | 31.71% |
| 52-Week Range | ₹381.55 — ₹594.55 |
| Sector | Beverages |
| Book Value | ₹120.02 |
Strengths
- Revenue growth of 94.97% demonstrates strong demand momentum.
- ROCE of 28.19% and ROE of 16.47% show solid capital efficiency.
- Debt/equity of only 0.02 means the balance sheet is almost debt-free.
- Piotroski F-score of 7/9 suggests reasonably sound financial health.
- PEG of 0.70 indicates growth may still be attractive if earnings deliver.
Concerns
- Latest quarter reported a net loss of ₹105 Cr despite sales of ₹664 Cr.
- Valuation is rich: P/E of 39.71 and P/B of 15.48 against book value of ₹30.15 leave little margin of safety.
- Profit growth of 18.69% lags sales growth of 94.97%, implying margin dilution.
- Promoter holding of 31.71% is modest and dividend yield of 0.22% offers negligible income support.
AI Analysis
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.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer