Tirupati Foam Limited

Consumer Cyclical — Furnishings, Fixtures & Appliances · BSE

₹76.00−₹0.50 (−0.65%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Thin profit margins are 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 Tirupati Foam Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Tirupati Foam Limited manufactures and sells polyurethane foam and articles in India.

IndustryFurnishings, Fixtures & Appliances

SectorConsumer Cyclical

Employees50

Annual revenue₹95 Cr

How does it make money?

Turns over ₹95 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 50 employees supports ₹1.90 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin8.1%

Net margin2.0%

Revenue / employee₹1.90 Cr

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

VOLTAS LTDP/E 75.8x · ROE 7.0%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

What is its competitive advantage?Little sign of one

Returns on capital of 13.4% 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.

ROCE13.4%

ROE5.7%

Peer median ROE17.1%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -7% while net margin moved +8% 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-7%

Margin effect+8%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 2.2% a year
✗ Profit CAGR of only 0.4%

Quality vs. Valuation

Company Quality

40/ 100

Weak

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

Valuation

69/ 100

Cheap

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

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

15.4x

3Y Median

19.6x

40 monthly readings · mean 20.5x · range 11.9x–29.3x

Sector Median

68.5x

median of 3 sector peers

🟢Current valuation is approximately 22% below its 3y median of 19.6x. 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 78% below the peer median of 68.5x.

vs. its own history

Cheap

19.6x median over 40 months · -22%

vs. sector peers

Cheap

68.5x median of 3 peers · -78%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

15.4x

P/B

0.98x

EV/EBITDA

9.1x

PEG

37.33

Dividend Yield

1.32%

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 21% over 3 years.
Valuation below its historical average
At 15.4x the stock trades 22% below its own median of 19.6x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Inventory building faster than sales
Inventory is up 43% against revenue growth of -7% — stock may not be moving.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.7x — little room if earnings dip.
🟡Inventory building faster than salesFinancial
Inventory up 43% against revenue up -7% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 21% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 22% 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 78% 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 4.8x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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

1EBITDA margin holds above 6%✓ 8.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.8x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 1.7x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹5 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 10%✓ 13.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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 · 5 neutral · 1 weak

Market Cap

₹33 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.4x

Fair

Fairly valued against the generic band

P/B Ratio

0.98x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹4.94

Profitable

Profitable on a per-share basis

ROE

5.7%

Weak

Weak capital efficiency

ROCE

13.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.08x

Moderate

Moderate leverage

Revenue Growth (YoY)

22.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

60.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.32%

Modest

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

Free Cash Flow

₹5 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹76

Operating Margin

6.2%

Average

Average margins

Net Margin

2.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.31

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.02

Defensive

Steadier than the market

52W Range Position

25%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

72.1 / 90.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

66.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹102 Cr	₹104 Cr	₹106 Cr	₹95 Cr	-2.2%
EBITDA	₹10 Cr	₹9 Cr	₹8 Cr	₹8 Cr	-7.1%
EBITDA Margin	9.4%	9.0%	7.9%	8.1%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	₹2 Cr	₹2 Cr	+0.4%
EPS	₹4.31	₹4.77	₹4.85	₹4.37	+0.5%
ROE	6.5%	6.8%	6.6%	5.7%	—
ROCE	14.5%	16.0%	14.9%	13.4%	—
Total Debt	₹47 Cr	₹40 Cr	₹40 Cr	₹37 Cr	-7.7%
Free Cash Flow	₹4 Cr	₹9 Cr	₹6 Cr	₹5 Cr	+2.9%

🔴 Revenue has shrunk at 2.2% a year over 3 years.

🔴 EBITDA has shrunk at 7.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 9.4% to 8.1% over 3 years (-1.3 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (0.4% a year).

🟡 EPS has been broadly flat over 3 years (0.5% a year).

🟡 ROE has held roughly flat at 5.7% over 3 years.

🔴 ROCE has fallen from 14.5% to 13.4% over 3 years (-1.1 pts).

🟢 Total Debt has shrunk at 7.7% a year over 3 years.

🟢 Free Cash Flow has grown at 2.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹88 Cr

Total Liabilities

₹54 Cr

Total Debt

₹37 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.9%

Insider Holding

79.7%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

13 Aug 2026

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

1 mixed5 general

Compare with GRATEX INDS.

Equitymaster, 16 Oct

Tirupati Foam promoter Kalpesh Kothari sells 7,712 shares

scanx.trade, 05 Oct

Compare GRATEX INDS. with

Equitymaster, 16 Oct

Tirupati Foam Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Tirupati Foam closes trading window from Oct 1 for Q2FY27 results

scanx.trade, 24 SeptResults

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

Electronics Consumer Products Penny Stocks 2027: 5 Picks

Univest, 18 Sept

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate9/20

🟡Financial HealthAdequate11.6/20

🔴GrowthWeak4.8/20

🔴ProfitabilityWeak4.5/15

🟢ValuationAttractive12/15

🟡RiskModerate6.2/10

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 6%8.1%
✗Debt / EBITDA falls below 3x4.8x
✗Interest cover stays above 3x1.7x
✓Free cash flow remains positive₹5 Cr
✓ROCE stays above 10%13.4%