Technocraf.Inds. (TIIL)
CyclicalFairStock Score: 46/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹3,088.7 |
| Market Cap | ₹7,002.95 Cr |
| P/E Ratio | 24.57 |
| ROCE | 15.77% |
| ROE | 17.89% |
| Dividend Yield | 1.3% |
| Profit Growth | 45.12% |
| Debt/Equity | 0.4 |
| Sales Growth | 10.83% |
| Promoter Holding | 74.75% |
| 52-Week Range | ₹1,868.5 — ₹3,565.3 |
| Sector | Industrial Products |
| Book Value | ₹892.04 |
Strengths
- Robust promoter holding of 74.75% aligns management with minority shareholders.
- ROE of 17.89% and ROCE of 15.77% show solid capital efficiency.
- Moderate debt-to-equity of 0.43 and Piotroski F-Score of 7/9 indicate healthy financials.
- Profit growth of 30.98% demonstrates operational leverage or margin improvement.
Concerns
- Very low sales growth of 2.81% suggests limited top-line expansion and possible cyclicality.
- Valuation is rich: P/E of 18.77 and P/B of 4.25 for a slow-growing steel products business.
- Dividend yield of only 0.88% provides minimal income support.
- FairStock Score of 39/100 flags mixed signals.
AI Analysis
Technocraf presents an interesting paradox. On one hand, I see a business with a return on equity near 18% and a Piotroski score of 7, suggesting healthy fundamentals. The debt-to-equity ratio of 0.43 is manageable, and promoter holding at 74.75% aligns interests with minority shareholders. Yet the top line grew only 2.81%, while profits jumped 30.98%. That gap tells me the recent earnings surge is more about margin expansion or operational leverage than durable demand growth. In a cyclical steel products industry, such profit spikes can reverse quickly when prices turn. At ₹2,501, the stock trades at 18.77 times earnings and 4.25 times book value. For a slow-growing cyclical, that is not a margin of safety Graham would admire. The dividend yield is a paltry 0.88%, so income seekers won't be compensated while waiting. Book value of ₹589 provides a floor, but P/B of 4.25 means you are paying a hefty premium for that floor. The PEG ratio of 1.11 assumes the 30.98% profit growth is sustainable, but with sales growth of under 3%, that assumption is shaky. I'd rather wait for a cyclical downturn to buy a better business at 10-12 times earnings. The latest quarter's net profit of ₹54 Cr on sales of ₹662 Cr is decent, but I need to see whether this is a new normal or a cyclical peak. A FairStock score of 39/100 is a warning flag. As Buffett would say, it's far better to buy a wonderful company at a fair price, but Technocraf is neither wonderfully growing nor cheap. I'll keep it on my watchlist and wait.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer