Tembo Global Industries Limited

Industrials — Metal Fabrication · NSE

₹58.50+₹1.35 (+2.36%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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

In simple words: Strong business and financial position, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Tembo Global Industries Limited engages in manufacturing, fabrication, jobbing and trading of engineering products in India and internationally.

IndustryMetal Fabrication

SectorIndustrials

Employees151

Annual revenue₹1,050 Cr

How does it make money?

Turns over ₹1,050 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 151 employees supports ₹6.95 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin15.1%

Net margin9.4%

Revenue / employee₹6.95 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.

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

HINDALCO INDUSTRIES LTDP/E 12.3x · ROE 12.0%

VEDANTA LIMITEDP/E 10.4x · ROE 18.7%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 20.5%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 21.7% against a peer median of 18.7% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE20.5%

ROE21.7%

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 +320% while net margin moved +304% 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+320%

Margin effect+304%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 0.81 — moves roughly with the market
✗ 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

68/ 100

Good

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

Valuation

75/ 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

12.4x

3Y Median

43.9x

40 monthly readings · mean 35.1x · range 10.5x–76.8x

Sector Median

12.2x

median of 4 sector peers

🟢Current valuation is approximately 72% below its 3y median of 43.9x. 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 is priced broadly in line with the peer median of 12.2x.

vs. its own history

Cheap

43.9x median over 40 months · -72%

vs. sector peers

Fair

12.2x median of 4 peers · +2%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

12.4x

P/B

1.92x

EV/EBITDA

9.1x

PEG

0.08

Dividend Yield

0.17%

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 5.5% to 15.1% over 3 years.
Return on equity is rising
ROE has improved from 14.5% to 21.7%.
High return on capital employed
ROCE of 20.5% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 12.4x the stock trades 72% below its own median of 43.9x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention5

Debt is rising
Total debt is up 816% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on capital is falling
ROCE has declined from 24.1% to 20.5% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 896% against revenue growth of 320% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 432% against revenue growth of 320% — stock may not be moving.

Red Flags

7 items require attention · 4 high · 3 watch

🔴Debt has risen sharplyFinancial
Total debt is up 816% over 3 years, from ₹42 Cr to ₹386 Cr.
🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 896% against revenue up 320% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 432% against revenue up 320% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹187 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 67% over 3 years — each existing share owns a smaller slice of the company.
🟡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?

Capital compounds at a high rate
ROCE of 20.5% 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 5.5% to 15.1%. 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 72% 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.
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?

Sales are being booked faster than collected
Receivables are up 896% against revenue up 320%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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
4 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 46% a year✓ 61.4% CAGR
Latest reported year was 21.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 13%✓ 15.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹187 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 18%✓ 20.5%
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 · 4 neutral · 2 weak

Market Cap

₹1,132 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.4x

Cheap

Cheap against the generic band

P/B Ratio

1.92x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.72

Profitable

Profitable on a per-share basis

ROE

21.7%

Strong

Strong capital efficiency

ROCE

20.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.78x

Moderate

Moderate leverage

Revenue Growth (YoY)

21.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-9.1%

Falling

Profits are shrinking

Dividend Yield

0.17%

Modest

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

Free Cash Flow

-₹187 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹58.5

Operating Margin

15.8%

Good

Healthy core-business profitability

Net Margin

8.9%

Average

Average bottom-line conversion

Current Ratio

1.91

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.81

Market-like

Moves roughly in line with the market

52W Range Position

38%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

57.1 / 58.0

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

51.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹250 Cr	₹430 Cr	₹700 Cr	₹1,050 Cr	+61.4%
EBITDA	₹14 Cr	₹27 Cr	₹94 Cr	₹158 Cr	+125.1%
EBITDA Margin	5.5%	6.2%	13.4%	15.1%	—
PAT (Net Profit)	₹6 Cr	₹14 Cr	₹55 Cr	₹98 Cr	+156.9%
EPS	₹0.52	₹1.05	₹4.11	₹5.51	+119.4%
ROE	14.5%	21.5%	25.9%	21.7%	—
ROCE	24.1%	31.1%	33.6%	20.5%	—
Total Debt	₹42 Cr	₹50 Cr	₹258 Cr	₹386 Cr	+109.2%
Free Cash Flow	-₹6 Cr	₹9 Cr	-₹157 Cr	-₹187 Cr	—

🟢 Revenue has grown at 61.4% a year over 3 years.

🟢 EBITDA has grown at 125.1% a year over 3 years.

🟢 EBITDA Margin has risen from 5.5% to 15.1% over 3 years (+9.5 pts).

🟢 PAT (Net Profit) has grown at 156.9% a year over 3 years.

🟢 EPS has grown at 119.4% a year over 3 years.

🟢 ROE has risen from 14.5% to 21.7% over 3 years (+7.2 pts).

🔴 ROCE has fallen from 24.1% to 20.5% over 3 years (-3.6 pts).

🔴 Total Debt has grown at 109.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,306 Cr

Total Liabilities

₹814 Cr

Total Debt

₹386 Cr

Cash & Equivalents

₹85 Cr

Operating Cash Flow

-₹90 Cr

Capex

-₹97 Cr

Shareholding (proxy)

Institutional Holding

0.5%

Insider Holding

0.0%

Corporate Actions

Dividend Rate

₹0.1

Ex-Dividend Date

16 Jan 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

1 positive5 general

Tembo Global Industries lists on BSE, targets defence production by Q1FY28

scanx.trade, 15 Oct

Tembo Global Industries Share: Bull Case vs Bear Case for 2026

Univest, 25 Sept

Tembo Global Industries (TEMBO.NS) Steadies Near ₹57.74 as Traders Watch ₹60.63 Ceiling - Collar Trade

https://www.siam.in/, 30 Sept

Tembo Global Industries Lists on BSE Main Board

EquityBulls, 16 Oct

Tembo Global Industries Approves 1:10 Stock Split To Enhance Market Liquidity

Sahi, 16 JunCapital return

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

With EPS Growth And More, Tembo Global Industries (NSE:TEMBO) Makes An Interesting Case

Simply Wall Street, 25 May

Watch Items

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

🟡Business QualityAdequate12.6/20

🟡Financial HealthAdequate12/20

🟢GrowthStrong14.9/20

🟢ProfitabilityStrong11.8/15

🟢ValuationAttractive11.8/15

🔴RiskHigh3.5/10

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

This thesis breaks if

✓Revenue growth stays above 46% a year61.4% CAGR
✓EBITDA margin holds above 13%15.1%
✗Debt / EBITDA stays below 2x2.4x
✗Free cash flow remains positive-₹187 Cr
✓ROCE stays above 18%20.5%