Tamboli Industries Limited

Industrials — Metal Fabrication · NSE

₹365.00+₹60.80 (+19.99%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Tamboli Industries Limited manufactures and sells fully machined precision components in India. It operates through three segments: Investment Activities, Trading Activities, and Manufacturing Activities.

IndustryMetal Fabrication

SectorIndustrials

Employees2

Annual revenue₹80 Cr

How does it make money?

Turns over ₹80 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹24 left at the operating level before interest, tax and depreciation. Each of its 2 employees supports ₹40.06 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹40.06 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, HINDALCO INDUSTRIES LTD, VEDANTA 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 11.0% 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 ROE18.7%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -4% while net margin moved -4% 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-4%

Margin effect-4%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 1.2% a year
✗ Profit has declined at 2.4% a year

Quality vs. Valuation

Company Quality

46/ 100

Average

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

Valuation

40/ 100

Expensive

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

34.1x

Sector Median

12.2x

median of 4 sector peers

⚠️Against its sector it trades 180% above the peer median of 12.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

12.2x median of 4 peers · +180%

vs. generic bands

Fair

15x–35x

EV/EBITDA

19.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 15.3% to 11.0% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 77% over 3 years, from ₹1 Cr to ₹2 Cr.
🔴High leverageFinancial
Debt/Equity of 1.98x — earnings must service borrowings before shareholders see anything.
🔴Receivables growing faster than salesFinancial
Receivables up 110% against revenue up -4% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

Leverage amplifies any setback
Debt/Equity of 1.98x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 110% against revenue up -4%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 180% above the peer median. That premium needs a reason that persists, or it closes.
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 22%✓ 23.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✓ 11.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 10 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

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹362 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

34.1x

Fair

Fairly valued against the generic band

P/B Ratio

2.96x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹10.71

Profitable

Profitable on a per-share basis

ROE

8.0%

Moderate

Moderate capital efficiency

ROCE

11.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.98x

High

High leverage

Revenue Growth (YoY)

10.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

64.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.33%

Modest

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

Free Cash Flow

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

14.3%

Average

Average margins

Net Margin

12.9%

Good

Strong bottom-line conversion

Current Ratio

6.28

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.09

Defensive

Steadier than the market

52W Range Position

100%

Near high

Near its 52-week high

Technical Snapshot

RSI (14)

74.1

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹83 Cr	₹75 Cr	₹68 Cr	₹80 Cr	-1.2%
EBITDA	₹20 Cr	₹15 Cr	₹16 Cr	₹19 Cr	-2.0%
EBITDA Margin	24.3%	20.6%	23.1%	23.7%	—
PAT (Net Profit)	₹11 Cr	₹8 Cr	₹8 Cr	₹10 Cr	-2.4%
EPS	₹10.64	₹7.59	₹7.78	₹9.88	-2.4%
ROE	10.2%	6.8%	6.8%	8.0%	—
ROCE	15.3%	9.6%	9.5%	11.0%	—
Total Debt	₹1 Cr	₹3 Cr	₹6 Cr	₹2 Cr	+21.0%
Free Cash Flow	₹15 Cr	-₹3 Cr	-₹0 Cr	₹2 Cr	-50.7%

🟡 Revenue has been broadly flat over 3 years (-1.2% a year).

🟡 EBITDA has been broadly flat over 3 years (-2.0% a year).

🟡 EBITDA Margin has held roughly flat at 23.7% over 3 years.

🔴 PAT (Net Profit) has shrunk at 2.4% a year over 3 years.

🔴 EPS has shrunk at 2.4% a year over 3 years.

🔴 ROE has fallen from 10.2% to 8.0% over 3 years (-2.2 pts).

🔴 ROCE has fallen from 15.3% to 11.0% over 3 years (-4.2 pts).

🔴 Total Debt has grown at 21.0% a year over 3 years.

🔴 Free Cash Flow has shrunk at 50.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹135 Cr

Total Liabilities

₹12 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹17 Cr

Capex

-₹15 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

63.5%

Corporate Actions

Dividend Rate

₹1.2

Ex-Dividend Date

19 Aug 2026

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%

Recent News

6 general

Tamboli Industries (TAMBOLIIN) Share/Stock Price Live, NSE

TechGraph, 09 Oct

Tamboli Industries Ltd is Rated Hold

MarketsMojo, 15 Oct

Rs 20 Crore Annual Opportunity! This Small-Cap Engineering Stock Wins Global OEM Programme

Dalal Street Investment Journal, 12 Oct

Tamboli Ind. Consolidated March 2026 Net Sales at Rs 22.75 crore, up 14.91% Y-o-Y

Moneycontrol.com, 08 May

TAMBOLIIN Stock Price and Chart — NSE:TAMBOLIIN

TradingView, 20 Apr

52 Week High Shares BSE | 52 Week High Today | Shares Trading 52 Week High BSE

Livemint, 16 Oct

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

MiddlingBusiness Quality · Financial Health · Profitability · Valuation · Risk

WeakGrowth

Points for each in the Score ↑

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.

All 4 tripwires holding · see Key things to watch ↑