Tandhan Industries Limited

Financial Services — Capital Markets · BSE

₹135.80−₹7.10 (−4.97%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it. Cash generation is currently 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 Tandhan Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Tandhan Industries Limited engages in manufacturing and trading of plastic and polymer-based products in India.

IndustryCapital Markets

SectorFinancial Services

Employees9

Annual revenue₹97 Cr

How does it make money?

Turns over ₹97 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹20 left at the operating level before interest, tax and depreciation. Each of its 9 employees supports ₹10.76 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹10.76 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC LIFE INS CO LTD, SBI LIFE INSURANCE CO LTD. 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?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE13.7%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +240826% while net margin moved -110% 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+240826%

Margin effect-110%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.26 — 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

79/ 100

Good

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

Valuation

43/ 100

Expensive

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

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

39.5x

2Y Median

11.4x

28 monthly readings · mean 16.2x · range 3.1x–43.3x

Sector Median

58.4x

median of 3 sector peers

⚠️Current valuation is approximately 247% above its 2y median of 11.4x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 32% below the peer median of 58.4x.

vs. its own history

Expensive

11.4x median over 28 months · +247%

vs. sector peers

Cheap

58.4x median of 3 peers · -32%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

40.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -174.6% to 19.6% over 3 years.
Return on equity is rising
ROE has improved from -4.0% to 6.2%.
Return on capital is rising
ROCE has improved from -4.0% to 8.5%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 watch

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 4425% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -174.6% to 19.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 32% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 247% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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.

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

1Revenue growth stays above 930% a year✓ 1240.6% CAGR
Set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 18%✓ 19.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 6.2%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 3x✓ 3.8x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 11.4x✗ 39.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 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)
✓ 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

2 good · 7 neutral · 2 weak

Market Cap

₹676 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

39.5x

Fair

Fairly valued against the generic band

P/B Ratio

3.88x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹3.44

Profitable

Profitable on a per-share basis

ROE

6.2%

Weak

Weak capital efficiency

ROCE

8.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.62x

Moderate

Moderate leverage

Revenue Growth (YoY)

Not available

No data

Source didn't return this field

Profit Growth (YoY)

2842.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.01%

Modest

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

Free Cash Flow

-₹68 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

13.3%

Average

Average margins

Net Margin

10.5%

Good

Strong bottom-line conversion

Current Ratio

1.64

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.26

Defensive

Steadier than the market

52W Range Position

76%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

148.1 / 146.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

27.7

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	—	—	₹97 Cr	+1240.6%
EBITDA	-₹0 Cr	-₹0 Cr	-₹0 Cr	₹19 Cr	—
EBITDA Margin	-174.6%	—	—	19.6%	—
PAT (Net Profit)	-₹0 Cr	₹0 Cr	₹0 Cr	₹11 Cr	—
EPS	₹-0.39	₹0.92	₹3.35	₹4.67	—
ROE	-4.0%	7.8%	23.6%	6.2%	—
ROCE	-4.0%	7.6%	27.4%	8.5%	—
Total Debt	₹1 Cr	₹1 Cr	₹0 Cr	₹107 Cr	+409.3%
Free Cash Flow	₹0 Cr	-₹0 Cr	-₹0 Cr	-₹68 Cr	—

🟢 Revenue has grown at 1240.6% a year over 3 years.

🟢 EBITDA has turned positive, from -₹0 Cr to ₹19 Cr.

🟢 EBITDA Margin has risen from -174.6% to 19.6% over 3 years (+194.2 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹11 Cr.

🟢 EPS has turned positive, from ₹-0.39 to ₹4.67.

🟢 ROE has risen from -4.0% to 6.2% over 3 years (+10.3 pts).

🟢 ROCE has risen from -4.0% to 8.5% over 3 years (+12.5 pts).

🔴 Total Debt has grown at 409.3% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹68 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹295 Cr

Total Liabilities

₹121 Cr

Cash & Equivalents

₹23 Cr

Operating Cash Flow

-₹36 Cr

Capex

-₹32 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

86.5%

Corporate Actions

Dividend Rate

₹0.01

Ex-Dividend Date

23 Sept 2026

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC LIFE INS CO LTD	58.4x	11.3%
SBI LIFE INSURANCE CO LTD	63.9x	13.7%

Recent News

1 mixed5 general

Tandhan Industries seeks approval for ₹51.84 crore FCW issue at AGM

scanx.trade, 14 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.

Tandhan Industries AGM passes ₹51.84 crore preferential issue resolution

scanx.trade, 25 Sept

INDPRUD Stock Price and Chart — NSE:INDPRUD

TradingView, 20 Apr

Sanmitra Commercial Limited Officially Renamed to Tandhan Industries Limited

scanx.trade, 16 Feb

Discover the opportunities, key trends and growth prospects shaping Bengal’s investment outlook. Tune in for insightful discussions featuring Vinod Gupta, Managing Director, Dollar Industries Ltd.; Shams Tabrez, Deputy General Manager (SME), State Bank o

Facebook, 09 Oct

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth

MiddlingProfitability

WeakValuation · Risk

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you.

2 of 5 tripwires tripped — Return on equity stays above 8%; Valuation vs its own median of 11.4x · see Key things to watch ↑