Tai Industries Limited

Basic Materials — Other Industrial Metals & Mining · BSE

₹26.00+₹1.09 (+4.38%)

DalalBaazaar Score

37 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

Tai Industries Limited engages in trading, marketing and distribution, and retailing of packaged fruit and vegetable products under the DRUK brand.

IndustryOther Industrial Metals & Mining

SectorBasic Materials

Employees80

Annual revenue₹146 Cr

How does it make money?

Turns over ₹146 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹0 left at the operating level before interest, tax and depreciation. Each of its 80 employees supports ₹1.83 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.83 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDALCO INDUSTRIES LTD, VEDANTA LIMITED, TATA STEEL 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?Little sign of one

Returns on capital of 0.9% 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.

Peer median ROE12.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -41% while net margin moved -96% 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-41%

Margin effect-96%

DalalBaazaar Score

37/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 16.1% a year
✗ Profit has declined at 72.5% a year
✗ Profit fell 91.7% in the latest year

Quality vs. Valuation

Company Quality

34/ 100

Weak

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

Valuation

36/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

24.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 92% over 3 years.
Very low debt
Debt/Equity of 0.03x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 17.3% to 0.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 22.9% to 0.9% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 3 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 98% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 2.3 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 92% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 2.7% to 0.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 17.3% to 0.3%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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 -2%✓ 0.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✗ 0.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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 · 2 neutral · 6 weak

Market Cap

₹16 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.55x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.56

Loss-making

Negative earnings per share — the business is losing money

ROE

0.3%

Weak

Weak capital efficiency

ROCE

0.9%

Weak

Low return on total capital employed

Debt/Equity

0.03x

Low

Conservative leverage

Revenue Growth (YoY)

39.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-91.7%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-2.1%

Weak

Thin margins leave little room for error

Net Margin

-0.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.54

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.06

Defensive

Steadier than the market

52W Range Position

34%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

26.3 / 26.1

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

51.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹247 Cr	₹142 Cr	₹268 Cr	₹146 Cr	-16.1%
EBITDA	₹7 Cr	₹2 Cr	₹2 Cr	₹1 Cr	-57.0%
EBITDA Margin	2.7%	1.5%	0.8%	0.4%	—
PAT (Net Profit)	₹5 Cr	₹1 Cr	₹1 Cr	₹0 Cr	-72.5%
EPS	₹7.69	₹2.35	₹1.91	₹0.16	-72.5%
ROE	17.3%	4.9%	3.9%	0.3%	—
ROCE	22.9%	4.5%	5.6%	0.9%	—
Total Debt	₹0 Cr	₹2 Cr	₹1 Cr	₹0 Cr	-56.3%
Free Cash Flow	-₹2 Cr	-₹6 Cr	₹1 Cr	-₹1 Cr	—

🔴 Revenue has shrunk at 16.1% a year over 3 years.

🔴 EBITDA has shrunk at 57.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 2.7% to 0.4% over 3 years (-2.3 pts).

🔴 PAT (Net Profit) has shrunk at 72.5% a year over 3 years.

🔴 EPS has shrunk at 72.5% a year over 3 years.

🔴 ROE has fallen from 17.3% to 0.3% over 3 years (-16.9 pts).

🔴 ROCE has fallen from 22.9% to 0.9% over 3 years (-22.0 pts).

🟢 Total Debt has shrunk at 56.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹68 Cr

Total Liabilities

₹39 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

69.0%

Corporate Actions

Ex-Dividend Date

16 Sept 2016

Peer Comparison

Company	P/E	ROE
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%
TATA STEEL LIMITED	19.8x	10.8%

Recent News

1 negative5 general

Compare with TAI INDUSTRIES

Equitymaster, 30 Sept

Tai Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 01 Sept

Tai Industries sets Sept 22 for 43rd AGM; FY26 profit falls 91% to ₹9.5 crore

scanx.trade, 22 SeptResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Hon Hai Precision Industry Co., Ltd. (2317.TW) stock price, news, quote and history

Yahoo Finance UK, 17 Oct

Tai Industries Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Tai Industries Q1FY27 net loss widens to ₹43.21 lakh on margin squeeze

scanx.trade, 12 Aug

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health

MiddlingValuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation.

2 of 4 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑