Technocraft Industries (India) Limited

Industrials — Tools & Accessories · NSE

₹2,616.00+₹30.70 (+1.19%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

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

What does this company do?

Technocraft Industries (India) Limited engages in scaffolding business in India and internationally. It operates through Drum Closures, Scaffoldings, Yarn, Fabric, Engineering & Design, and Others segments.

IndustryTools & Accessories

SectorIndustrials

Employees1,716

Annual revenue₹2,622 Cr

How does it make money?

Turns over ₹2,622 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 1,716 employees supports ₹1.53 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin21.9%

Net margin10.9%

Revenue / employee₹1.53 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.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Some evidence

ROCE of 19.1% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE19.1%

ROE14.1%

Peer median ROE15.2%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 11.9% and earnings to grow about 17.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+11.9%

Est. earnings growth+17.4%

Analysts1

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 +41% while net margin moved -24% 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+41%

Margin effect-24%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 12.2% is steady
✗ Profit CAGR of only 2.2%
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

64/ 100

Average

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

Valuation

67/ 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

17.5x

3Y Median

22.0x

40 monthly readings · mean 22.5x · range 17.4x–33.4x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 20% below its 3y median of 22.0x. 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 80% below the peer median of 88.8x.

vs. its own history

Cheap

22.0x median over 40 months · -20%

vs. sector peers

Cheap

88.8x median of 3 peers · -80%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

17.5x

P/B

2.93x

EV/EBITDA

11.5x

PEG

7.86

Dividend Yield

0.76%

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 299% over 3 years.
Valuation below its historical average
At 17.5x the stock trades 20% below its own median of 22.0x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 23.6% to 21.9% over 3 years.
Debt is rising
Total debt is up 27% over 3 years — worth checking what it funded.
Return on equity is falling
ROE has dropped from 18.9% to 14.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 25.7% to 19.1% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴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.
🟡Debt is increasingFinancial
Total debt is up 27% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.1% 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.
Priced below its own history
The stock trades 20% 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 80% 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 ₹134 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Margins are being competed away
EBITDA margin has fallen from 23.6% to 21.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 18.9% to 14.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small 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 9% a year✓ 12.2% CAGR
Latest reported year was 27.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 20%✓ 21.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹134 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 16%✓ 19.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 5 neutral · 0 weak

Market Cap

₹5,931 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

17.5x

Fair

Fairly valued against the generic band

P/B Ratio

2.93x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹149.78

Profitable

Profitable on a per-share basis

ROE

14.1%

Moderate

Moderate capital efficiency

ROCE

19.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.40x

Low

Conservative leverage

Revenue Growth (YoY)

27.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

68.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.76%

Modest

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

Free Cash Flow

₹134 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹2,616

P/E (Forward)

13.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

18.5%

Good

Healthy core-business profitability

Net Margin

11.6%

Good

Strong bottom-line conversion

Current Ratio

2.05

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.37

Defensive

Steadier than the market

52W Range Position

44%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2826.8 / 3007.6

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

24.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,857 Cr	₹2,061 Cr	₹2,449 Cr	₹2,622 Cr	+12.2%
EBITDA	₹438 Cr	₹443 Cr	₹475 Cr	₹573 Cr	+9.4%
EBITDA Margin	23.6%	21.5%	19.4%	21.9%	—
PAT (Net Profit)	₹267 Cr	₹264 Cr	₹256 Cr	₹285 Cr	+2.2%
EPS	₹110.98	₹115.06	₹112.32	₹125.84	+4.3%
ROE	18.9%	15.8%	14.5%	14.1%	—
ROCE	25.7%	21.3%	19.4%	19.1%	—
Total Debt	₹656 Cr	₹676 Cr	₹860 Cr	₹831 Cr	+8.2%
Free Cash Flow	₹33 Cr	₹1 Cr	₹48 Cr	₹134 Cr	+58.6%

🟢 Revenue has grown at 12.2% a year over 3 years.

🟢 EBITDA has grown at 9.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 23.6% to 21.9% over 3 years (-1.7 pts).

🟢 PAT (Net Profit) has grown at 2.2% a year over 3 years.

🟢 EPS has grown at 4.3% a year over 3 years.

🔴 ROE has fallen from 18.9% to 14.1% over 3 years (-4.8 pts).

🔴 ROCE has fallen from 25.7% to 19.1% over 3 years (-6.6 pts).

🔴 Total Debt has grown at 8.2% a year over 3 years.

🟢 Free Cash Flow has grown at 58.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,249 Cr

Total Liabilities

₹1,183 Cr

Total Debt

₹831 Cr

Cash & Equivalents

₹160 Cr

Operating Cash Flow

₹243 Cr

Capex

-₹110 Cr

Shareholding (proxy)

Institutional Holding

5.5%

Insider Holding

77.6%

Corporate Actions

Dividend Rate

₹20

Ex-Dividend Date

04 Jun 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹3,860

+47.6% vs CMP

Target Range

₹3,860 – ₹3,860

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

1 positive4 mixed1 general

Technocraft Industries (India) (NSEI:TIIL) Stock Forecast & Analyst Predictions

Simply Wall Street, 15 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Technocraft Industries (India) Ltd. (TIIL) Share Price Hits Fresh 52-Week High

Univest, 25 Aug

Technocraft Industries Shares Surge Over 14% After Strong Q1 Earnings And Improved Operating Performance

NDTV Profit, 14 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

TIIL Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Technocraft Industries (India) (BSE:532804) Stock Forecast & Analyst Predictions

Simply Wall Street, 05 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Technocraft Industries Reports Q1 Net Profit Of ₹134 Crore, Revenue Rises To ₹800 Crore

Sahi, 14 AugResults

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

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
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

🟢Business QualityStrong13.1/20

🟢Financial HealthStrong17.8/20

🟡GrowthModest9.3/20

🟡ProfitabilityModerate8.2/15

🟢ValuationAttractive10.7/15

🟢RiskLow6.7/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 9% a year12.2% CAGR
✓EBITDA margin holds above 20%21.9%
✓Free cash flow remains positive₹134 Cr
✓Debt / EBITDA stays below 2x1.5x
✓ROCE stays above 16%19.1%