TAAL Tech Limited

Industrials — Airports & Air Services · BSE

₹992.00+₹27.65 (+2.87%)

DalalBaazaar Score

74 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

TAAL Tech Limited provides engineering design services in India and internationally.

IndustryAirports & Air Services

SectorIndustrials

Employees521

Annual revenue₹197 Cr

How does it make money?

Turns over ₹197 Cr a year. Of every ₹100 of sales, about ₹29 reaches shareholders as profit, with ₹34 left at the operating level before interest, tax and depreciation. Each of its 521 employees supports ₹37.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹37.9 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 30.5%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 23.1% against a peer median of 15.2% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +24% while net margin moved +46% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+24%

Margin effect+46%

DalalBaazaar Score

74/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 24.8x is within a normal band
• P/E is close to its own historical median of 24.1x
✗ P/B of 6.31x is a steep premium to book

Quality vs. Valuation

Company Quality

80/ 100

Excellent

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

Valuation

61/ 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

24.8x

3Y Median

24.1x

40 monthly readings · mean 24.0x · range 17.3x–31.8x

Sector Median

88.8x

median of 3 sector peers

🟡Currently trading close to its 3y median of 24.1x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 72% below the peer median of 88.8x.

vs. its own history

Fair

24.1x median over 40 months · +3%

vs. sector peers

Cheap

88.8x median of 3 peers · -72%

vs. generic bands

Fair

15x–35x

EV/EBITDA

23.1x

PEG

1.12

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 31.6% to 33.6% over 3 years.
Debt is being paid down
Total debt is down 90% over 3 years.
High return on capital employed
ROCE of 30.5% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 35.0% to 30.5% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴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.
🟡Receivables growing faster than salesFinancial
Receivables up 50% against revenue up 24% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 30.5% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 31.6% to 33.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 90% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 72% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹19 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 50% against revenue up 24%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 7.5% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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.

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

1EBITDA margin holds above 32%✓ 33.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 6% a year✓ 7.5% CAGR
Latest reported year was 41.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹19 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 27%✓ 30.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

11 / 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

7 good · 3 neutral · 1 weak

Market Cap

₹1,546 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

24.8x

Fair

Fairly valued against the generic band

P/B Ratio

6.31x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹40.07

Profitable

Profitable on a per-share basis

ROE

23.1%

Strong

Strong capital efficiency

ROCE

30.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.37x

Low

Conservative leverage

Revenue Growth (YoY)

41.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

41.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.71%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹19 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

32.6%

Good

Healthy core-business profitability

Net Margin

28.8%

Good

Strong bottom-line conversion

Current Ratio

9.49

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.59

Defensive

Steadier than the market

52W Range Position

66%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1043.6 / 961.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

40.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹159 Cr	₹187 Cr	₹185 Cr	₹197 Cr	+7.5%
EBITDA	₹50 Cr	₹53 Cr	₹67 Cr	₹66 Cr	+9.7%
EBITDA Margin	31.6%	28.4%	36.3%	33.6%	—
PAT (Net Profit)	₹31 Cr	₹37 Cr	₹49 Cr	₹57 Cr	+22.0%
EPS	₹20.04	₹23.84	₹31.31	₹36.4	+22.0%
ROE	25.2%	22.9%	23.9%	23.1%	—
ROCE	35.0%	31.0%	32.8%	30.5%	—
Total Debt	₹9 Cr	₹7 Cr	₹4 Cr	₹1 Cr	-54.0%
Free Cash Flow	₹19 Cr	₹32 Cr	₹39 Cr	₹19 Cr	-0.2%

🟢 Revenue has grown at 7.5% a year over 3 years.

🟢 EBITDA has grown at 9.7% a year over 3 years.

🟢 EBITDA Margin has risen from 31.6% to 33.6% over 3 years (+2.0 pts).

🟢 PAT (Net Profit) has grown at 22.0% a year over 3 years.

🟢 EPS has grown at 22.0% a year over 3 years.

🔴 ROE has fallen from 25.2% to 23.1% over 3 years (-2.0 pts).

🔴 ROCE has fallen from 35.0% to 30.5% over 3 years (-4.6 pts).

🟢 Total Debt has shrunk at 54.0% a year over 3 years.

🟡 Free Cash Flow has been broadly flat over 3 years (-0.2% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹271 Cr

Total Liabilities

₹26 Cr

Cash & Equivalents

₹18 Cr

Operating Cash Flow

₹19 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

1.5%

Insider Holding

69.3%

Corporate Actions

Dividend Rate

₹7

Ex-Dividend Date

16 Jan 2026

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

2 positive2 mixed2 general

TAAL Tech (NSE:TAALTECH) Posted Healthy Earnings But There Are Some Other Factors To Be Aware Of

Simply Wall Street, 03 JunResults

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

TAAL Enterprises Share Price Fall: Price and Fundamentals

Univest, 23 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

TAAL Tech Limited (TAALTECH.BO) Stock Price, News, Quote & History

Yahoo! Finance Canada, 22 Sept

TAAL Tech seeks 1:5 share split to boost liquidity at AGM

scanx.trade, 07 Aug

TAAL Tech (BSE:539956) Sets September 22 Record Date for 1:5 Stock Split

Kalkine India, 21 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

TAAL Tech consolidated net profit rises 41.72% in the June 2026 quarter

Business Standard, 06 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑