Tarini International Limited

Industrials — Engineering & Construction · BSE

₹7.23₹0.00 (0.00%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Tarini International Limited engages in engineering, consultancy, and turnkey contract and consultancy in power generation, transmission and distribution, and other EPC contracts in India and internationally.

IndustryEngineering & Construction

SectorIndustrials

Employees30

Annual revenue₹2 Cr

How does it make money?

Turns over ₹2 Cr a year. Of every ₹100 of sales, about ₹71 reaches shareholders as profit, with ₹31 left at the operating level before interest, tax and depreciation. Each of its 30 employees supports ₹7.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹7.8 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS 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 2.3% 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 ROE14.1%

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 +30% while net margin moved -5% 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+30%

Margin effect-5%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.46 — 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

Quality vs. Valuation

Company Quality

67/ 100

Good

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

Valuation

66/ 100

Fair

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

17.2x

3Y Median

35.1x

40 monthly readings · mean 674.3x · range 14.9x–3751.0x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 51% below its 3y median of 35.1x. 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 43% below the peer median of 30.1x.

vs. its own history

Cheap

35.1x median over 40 months · -51%

vs. sector peers

Cheap

30.1x median of 3 peers · -43%

vs. generic bands

Fair

15x–35x

EV/EBITDA

31.0x

PEG

2.38

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 4.1% to 31.2% over 3 years.
Return on capital is rising
ROCE has improved from -0.8% to 2.3%.
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

2 items require attention · 2 high

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 4.1% to 31.2%. 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 51% 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 43% 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?

The debt load needs earnings to hold up
Debt is 18.7x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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.
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

1EBITDA margin holds above 29%✓ 31.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 18.7x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Revenue growth stays above 7% a year✓ 9.2% CAGR
Latest reported year was -1.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5ROCE stays above 8%✗ 2.3%
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

5 good · 3 neutral · 3 weak

Market Cap

₹9 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

17.2x

Fair

Fairly valued against the generic band

P/B Ratio

0.34x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.42

Profitable

Profitable on a per-share basis

ROE

6.0%

Weak

Weak capital efficiency

ROCE

2.3%

Weak

Low return on total capital employed

Debt/Equity

0.49x

Low

Conservative leverage

Revenue Growth (YoY)

-1.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

22.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

0.7%

Weak

Assets generate little profit

Operating Margin

3.4%

Weak

Thin margins leave little room for error

Net Margin

70.9%

Good

Strong bottom-line conversion

Current Ratio

1.52

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.46

Defensive

Steadier than the market

52W Range Position

14%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

7.3 / 7.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

46.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2 Cr	₹2 Cr	₹2 Cr	₹2 Cr	+9.2%
EBITDA	₹0 Cr	₹1 Cr	₹1 Cr	₹1 Cr	+115.3%
EBITDA Margin	4.1%	34.4%	31.1%	31.2%	—
PAT (Net Profit)	₹1 Cr	₹0 Cr	₹2 Cr	₹2 Cr	+7.2%
EPS	₹0.34	₹0.01	₹0.42	—	—
ROE	4.7%	0.2%	6.0%	6.0%	—
ROCE	-0.8%	-3.9%	1.7%	2.3%	—
Total Debt	₹11 Cr	₹12 Cr	₹14 Cr	₹14 Cr	+5.8%
Free Cash Flow	-₹1 Cr	-₹2 Cr	-₹1 Cr	-₹1 Cr	—

🟢 Revenue has grown at 9.2% a year over 3 years.

🟢 EBITDA has grown at 115.3% a year over 3 years.

🟢 EBITDA Margin has risen from 4.1% to 31.2% over 3 years (+27.1 pts).

🟢 PAT (Net Profit) has grown at 7.2% a year over 3 years.

🟢 ROE has risen from 4.7% to 6.0% over 3 years (+1.3 pts).

🟢 ROCE has risen from -0.8% to 2.3% over 3 years (+3.1 pts).

🔴 Total Debt has grown at 5.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹42 Cr

Total Liabilities

₹15 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹1 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

72.2%

Corporate Actions

Ex-Dividend Date

26 Aug 2014

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

6 general

Tarini International Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 27 Aug

Tarini International schedules AGM, seeks approval for related-party transactions

scanx.trade, 05 Sept

Tarini International Ltd Receives High Court Stay on ROC Proceedings Against Directors and KMP

scanx.trade, 26 Mar

DMR Stock Price and Chart — BSE:DMR

TradingView, 08 Dec

Indian Navy's 'Tarini' with 2 women officers crosses International Date Line - India Today

India Today, 09 Jan

Sumeru Industries (BSE:530445) - Stock Analysis

Simply Wall Street, 01 Dec

Watch Items

Revenue growth is negative (-1.7%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Valuation

MiddlingGrowth · Profitability

WeakRisk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑