Tara Chand Infralogistic Solutions Limited

Industrials — Farm & Heavy Construction Machinery · NSE

₹47.40+₹1.40 (+3.04%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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

In simple words: Strong business and financial position, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Tara Chand Infralogistic Solutions Limited provides logistics solutions in India. The company operates through three segments: Transport & Handling Services; Equipment Rental Services; and Steel Processing & Distribution.

IndustryFarm & Heavy Construction Machinery

SectorIndustrials

Employees1,036

Annual revenue₹285 Cr

How does it make money?

Turns over ₹285 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹36 left at the operating level before interest, tax and depreciation. Each of its 1,036 employees supports ₹27.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹27.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are MAHINDRA & MAHINDRA LTD, ASHOK LEYLAND LTD, TATA MOTORS LIMITED, LARSEN & TOUBRO 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?Little sign of one

Returns on capital of 10.6% 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 ROE24.4%

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 +102% while net margin moved +48% 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+102%

Margin effect+48%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.36 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

69/ 100

Good

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

Valuation

82/ 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

16.3x

3Y Median

27.6x

40 monthly readings · mean 29.4x · range 13.4x–75.7x

Sector Median

27.6x

median of 4 sector peers

🟢Current valuation is approximately 41% below its 3y median of 27.6x. 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 41% below the peer median of 27.6x.

vs. its own history

Cheap

27.6x median over 40 months · -41%

vs. sector peers

Cheap

27.6x median of 4 peers · -41%

vs. generic bands

Fair

15x–35x

EV/EBITDA

4.7x

PEG

0.37

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 28.5% to 36.5% over 3 years.
Return on equity is rising
ROE has improved from 13.0% to 18.7%.
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

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 59% over 3 years, from ₹87 Cr to ₹138 Cr.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🟡Low reported insider holdingOwnership
Reported insider holding is 0.0%. For Indian companies this field is an unreliable proxy — check the official promoter shareholding in the exchange filing.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 28.5% to 36.5%. 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 41% 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 41% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

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
2 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

1Revenue growth stays above 20% a year✓ 26.4% CAGR
Latest reported year was 9.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 34%✓ 36.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹13 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 10.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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 · 7 neutral · 1 weak

Market Cap

₹374 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

16.3x

Fair

Fairly valued against the generic band

P/B Ratio

2.50x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2.9

Profitable

Profitable on a per-share basis

ROE

20.6%

Strong

Strong capital efficiency

ROCE

10.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.93x

Moderate

Moderate leverage

Revenue Growth (YoY)

9.7%

Modest

Modest growth

Profit Growth (YoY)

10.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.42%

Modest

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

Free Cash Flow

-₹32 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

6.1%

Average

Average asset productivity

Operating Margin

16.0%

Good

Healthy core-business profitability

Net Margin

9.8%

Average

Average bottom-line conversion

Current Ratio

1.72

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.36

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

46.6 / 47.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

43.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹141 Cr	₹172 Cr	₹248 Cr	₹285 Cr	+26.4%
EBITDA	₹40 Cr	₹56 Cr	₹79 Cr	₹104 Cr	+37.2%
EBITDA Margin	28.5%	32.7%	31.8%	36.5%	—
PAT (Net Profit)	₹9 Cr	₹16 Cr	₹25 Cr	₹28 Cr	+43.9%
EPS	₹1.19	₹2.13	₹3.15	₹3.54	+43.9%
ROE	13.0%	17.0%	20.5%	18.7%	—
ROCE	11.8%	13.9%	12.1%	10.6%	—
Total Debt	₹87 Cr	₹85 Cr	₹112 Cr	₹138 Cr	+16.7%
Free Cash Flow	₹7 Cr	-₹14 Cr	-₹17 Cr	-₹13 Cr	—

🟢 Revenue has grown at 26.4% a year over 3 years.

🟢 EBITDA has grown at 37.2% a year over 3 years.

🟢 EBITDA Margin has risen from 28.5% to 36.5% over 3 years (+7.9 pts).

🟢 PAT (Net Profit) has grown at 43.9% a year over 3 years.

🟢 EPS has grown at 43.9% a year over 3 years.

🟢 ROE has risen from 13.0% to 18.7% over 3 years (+5.7 pts).

🔴 ROCE has fallen from 11.8% to 10.6% over 3 years (-1.3 pts).

🔴 Total Debt has grown at 16.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹7 Cr to -₹13 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹516 Cr

Total Liabilities

₹367 Cr

Cash & Equivalents

₹27 Cr

Operating Cash Flow

₹69 Cr

Capex

-₹83 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

0.0%

Corporate Actions

Dividend Rate

₹0.2

Ex-Dividend Date

09 Jul 2026

Peer Comparison

Company	P/E	ROE
MAHINDRA & MAHINDRA LTD	17.8x	19.7%
ASHOK LEYLAND LTD	25.2x	24.4%
TATA MOTORS LIMITED	37.1x	32.8%
LARSEN & TOUBRO LTD.	30.1x	15.2%

Recent News

1 positive2 mixed3 general

Tara Chand Infralogistic Solutions Limited (NSE:TARACHAND) Looks Like A Good Stock, And It's Going Ex-Dividend Soon

Simply Wall Street, 05 JulCapital return

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

Tara Chand Infralogistic Solutions Ltd is Rated Strong Sell

MarketsMojo, 16 Oct

Tara Chand Stock Jumps 16% on ₹83.14 Cr FY26 Capex Finish

HDFC Sky, 16 Jun

Tara Chand Infralogistic Solutions Share Price Falls 10.75%

Univest, 06 AugPrice 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.

Tara Chand Infralogistics Solutions Q1 Results: Earnings Call Scheduled for Aug 7

scanx.trade, 03 AugResults

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

Tara Chand Infralogistic Solutions Ltd. Peer Comparison – Compare with Others

Value Research, 02 Sept

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
Reported insider holding is low — cross-check the official promoter shareholding % in the company's exchange filing.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability · Valuation

MiddlingFinancial Health

WeakRisk

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. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑