Taparia Tools Limited

Industrials — Tools & Accessories · BSE

₹15.46₹0.00 (0.00%)

DalalBaazaar Score

79 / 100

🟢 Good

Verdict

ATTRACTIVE

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 obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

Taparia Tools Limited engages in the manufacture and trading of hand tools primarily in India.

IndustryTools & Accessories

SectorIndustrials

Employees288

Annual revenue₹1,003 Cr

How does it make money?

Turns over ₹1,003 Cr a year. Of every ₹100 of sales, about ₹15 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 288 employees supports ₹3.48 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.48 Cr

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 45.9%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 34.8% 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 +35% while net margin moved +55% 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+35%

Margin effect+55%

DalalBaazaar Score

79/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.69 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

82/ 100

Excellent

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

Valuation

87/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

0.0x

3Y Median

0.1x

39 monthly readings · mean 0.2x · range 0.1x–0.4x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 96% below its 3y median of 0.1x. 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 100% below the peer median of 88.8x.

vs. its own history

Cheap

0.1x median over 39 months · -96%

vs. sector peers

Cheap

88.8x median of 3 peers · -100%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

0.1x

PEG

0.00

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 12.9% to 19.3% over 3 years.
Cash generation is improving
Free cash flow is up 59% over 3 years.
Return on equity is rising
ROE has improved from 26.7% to 34.8%.
Return on capital is rising
ROCE has improved from 35.4% to 45.9%.
High return on capital employed
ROCE of 45.9% 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 Attention0

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

Red Flags

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 184% over 3 years, from ₹1 Cr to ₹2 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 45.9% 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 12.9% to 19.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 96% 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.
Cheaper than its peers
It trades 100% 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 ₹132 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?

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 8% a year✓ 10.5% CAGR
Latest reported year was 14.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 17%✓ 19.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹132 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 43%✓ 45.9%
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

10 good · 1 neutral · 0 weak

Market Cap

₹23 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

0.0x

Cheap

Cheap against the generic band

P/B Ratio

0.05x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2,641.92

Profitable

Profitable on a per-share basis

ROE

34.8%

Strong

Strong capital efficiency

ROCE

45.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.38x

Low

Conservative leverage

Revenue Growth (YoY)

14.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

38.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

452.78%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹132 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

22.1%

Good

Healthy core-business profitability

Net Margin

15.5%

Good

Strong bottom-line conversion

Current Ratio

6.07

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.69

Defensive

Steadier than the market

52W Range Position

19%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

15.1 / 13.1

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹744 Cr	₹817 Cr	₹895 Cr	₹1,003 Cr	+10.5%
EBITDA	₹96 Cr	₹127 Cr	₹158 Cr	₹194 Cr	+26.5%
EBITDA Margin	12.9%	15.6%	17.6%	19.3%	—
PAT (Net Profit)	₹72 Cr	₹100 Cr	₹123 Cr	₹152 Cr	+28.0%
EPS	₹47.65	₹65.73	₹80.72	₹99.83	+28.0%
ROE	26.7%	31.5%	33.0%	34.8%	—
ROCE	35.4%	41.7%	43.8%	45.9%	—
Total Debt	₹1 Cr	₹0 Cr	₹2 Cr	₹2 Cr	+41.6%
Free Cash Flow	₹83 Cr	₹115 Cr	₹72 Cr	₹132 Cr	+16.7%

🟢 Revenue has grown at 10.5% a year over 3 years.

🟢 EBITDA has grown at 26.5% a year over 3 years.

🟢 EBITDA Margin has risen from 12.9% to 19.3% over 3 years (+6.4 pts).

🟢 PAT (Net Profit) has grown at 28.0% a year over 3 years.

🟢 EPS has grown at 28.0% a year over 3 years.

🟢 ROE has risen from 26.7% to 34.8% over 3 years (+8.0 pts).

🟢 ROCE has risen from 35.4% to 45.9% over 3 years (+10.5 pts).

🔴 Total Debt has grown at 41.6% a year over 3 years.

🟢 Free Cash Flow has grown at 16.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹521 Cr

Total Liabilities

₹85 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

₹137 Cr

Capex

-₹6 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

94.7%

Corporate Actions

Dividend Rate

₹70

Ex-Dividend Date

22 Jul 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

5 positive1 general

Taparia Tools reports 23.6% profit rise in FY26

scanx.trade, 07 JulResults

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

Taparia Tools Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Aditya Birla Sun Life, Hawkins Cookers, Taparia Tools, Thangamayil Dividend Record Date: Last Day To Buy Shares To Qualify

NDTV Profit, 21 JulCapital return

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

Mega Dividend Dhamaka! Penny Stock Under Rs 30 Announces 350% Payout | Do You Own?

Goodreturns, 25 MayCapital return

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

Taparia Tools ₹32.50 Dividend: Last Day to Buy Shares is Today

HDFC Sky, 18 NovCapital return

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

Taparia Tools shareholders unanimously approve FY26 dividend and director re-appointments

scanx.trade, 30 JulCapital return

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

Watch Items

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

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

MiddlingRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑