Tandhan Energies Limited

Consumer Defensive — Packaged Foods · BSE

₹351.20−₹1.80 (−0.51%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Tandhan Energies Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Tandhan Energies Limited engages in the trading, import, and export of power backup solutions, batteries, solar products, and electrical products in India and internationally.

IndustryPackaged Foods

SectorConsumer Defensive

Employees2

Annual revenue₹4 Cr

How does it make money?

Turns over ₹4 Cr a year. Of every ₹100 of sales, about ₹83 reaches shareholders as profit, with ₹116 left at the operating level before interest, tax and depreciation. Each of its 2 employees supports ₹1.99 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin116.3%

Net margin82.6%

Revenue / employee₹1.99 Cr

Who are its competitors?

The closest listed comparisons in its industry are NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD, TATA CONSUMER PRODUCT LTD, DABUR INDIA LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

NESTLE INDIA LIMITEDP/E 59.8x · ROE 79.9%

BRITANNIA INDUSTRIES LTDP/E 44.1x · ROE 51.0%

TATA CONSUMER PRODUCT LTDP/E 59.3x · ROE 7.5%

DABUR INDIA LTDP/E 34.7x · ROE 17.2%

What is its competitive advantage?Little sign of one

Returns on capital of 2.5% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE2.5%

ROE1.9%

Peer median ROE51.0%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of -0.17 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

59/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

45/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

71.4x

1.3Y Median

89.5x

16 monthly readings · mean 135.9x · range 59.1x–278.8x

Sector Median

51.7x

median of 4 sector peers

🟢Current valuation is approximately 20% below its 1.3y median of 89.5x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 38% above the peer median of 51.7x.

vs. its own history

Cheap

89.5x median over 16 months · -20%

vs. sector peers

Expensive

51.7x median of 4 peers · +38%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

71.4x

P/B

4.62x

EV/EBITDA

182.8x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Return on capital is rising
ROCE has improved from -48.3% to 2.5%.
Valuation below its historical average
At 71.4x the stock trades 20% below its own median of 89.5x.

🔴 What Needs Attention2

Debt is rising
Total debt is up 6646% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 6646% over 3 years, from ₹1 Cr to ₹58 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 3802% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 20% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 12.5x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 38% above the peer median. That premium needs a reason that persists, or it closes.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 114%✓ 116.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 12.5x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹65 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 2.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 89.5x✓ 71.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 4 neutral · 4 weak

Market Cap

₹819 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

71.4x

Expensive

Expensive — verify against sector peers

P/B Ratio

4.62x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.92

Profitable

Profitable on a per-share basis

ROE

1.9%

Weak

Weak capital efficiency

ROCE

2.5%

Weak

Low return on total capital employed

Debt/Equity

0.33x

Low

Conservative leverage

Revenue Growth (YoY)

5.3%

Modest

Modest growth

Profit Growth (YoY)

2944.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹65 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹351.2

Operating Margin

21.8%

Good

Healthy core-business profitability

Net Margin

17.7%

Good

Strong bottom-line conversion

Current Ratio

1.49

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.17

Defensive

Steadier than the market

52W Range Position

74%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

347.7 / 368.2

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

42.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	—	₹4 Cr	₹4 Cr	—
EBITDA	-₹0 Cr	-₹0 Cr	₹0 Cr	₹5 Cr	—
EBITDA Margin	—	—	2.9%	116.3%	—
PAT (Net Profit)	-₹0 Cr	-₹0 Cr	₹0 Cr	₹3 Cr	—
EPS	₹-3.45	₹-3.67	₹1.81	₹1.41	—
ROCE	-48.3%	-54.7%	14.9%	2.5%	—
Total Debt	₹1 Cr	₹1 Cr	₹1 Cr	₹58 Cr	+307.1%
Free Cash Flow	-₹0 Cr	-₹0 Cr	-₹0 Cr	-₹65 Cr	—

🟢 EBITDA has turned positive, from -₹0 Cr to ₹5 Cr.

🟢 EBITDA Margin has risen from 2.9% to 116.3% over 3 years (+113.5 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹3 Cr.

🟢 EPS has turned positive, from ₹-3.45 to ₹1.41.

🟢 ROCE has risen from -48.3% to 2.5% over 3 years (+50.9 pts).

🔴 Total Debt has grown at 307.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹271 Cr

Total Liabilities

₹94 Cr

Total Debt

₹58 Cr

Cash & Equivalents

₹30 Cr

Operating Cash Flow

-₹54 Cr

Capex

-₹10 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

85.1%

Corporate Actions

Ex-Dividend Date

11 Sept 2018

Peer Comparison

Company	P/E	ROE
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%
TATA CONSUMER PRODUCT LTD	59.3x	7.5%
DABUR INDIA LTD	34.7x	17.2%

Recent News

1 mixed5 general

Tandhan Energies approves Kolkata office and warrant bank account

scanx.trade, 16 Oct

Tandhan Energies Limited (519031) Company Information

Simply Wall Street, 07 Oct

Tandhan Energies Board Approves Establishment of New Corporate Office in Kolkata and Bank Account for Preferential Issue

EquityBulls, 16 Oct

Tandhan Industries reports standalone nil net profit/loss in the June 2026 quarter

Business Standard, 15 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

VADILENT Stock Price and Chart — NSE:VADILENT

TradingView, 18 Aug

Tandhan Energies passes all 8 AGM resolutions including warrant issue

scanx.trade, 01 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong14.3/20

🟡Financial HealthAdequate12/20

🟡GrowthModest10/20

🟡ProfitabilityModerate7.9/15

🟡ValuationFair8.3/15

🔴RiskHigh4/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 114%116.3%
✗Debt / EBITDA falls below 3x12.5x
✗Free cash flow remains positive-₹65 Cr
✗ROCE stays above 8%2.5%
✓Valuation vs its own median of 89.5x71.4x today