Tirupati Innovar Limited

Consumer Cyclical — Auto Parts · BSE

₹6.09−₹0.01 (−0.16%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Tirupati Innovar Limited operates as a tyre manufacturer in India with a range of products catering to diverse business segments in the automobile industry.

IndustryAuto Parts

SectorConsumer Cyclical

Annual revenue₹143 Cr

How does it make money?

Turns over ₹143 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹1 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS 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 1.4% 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.

Peer median ROE23.0%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 1.2% is weak

Quality vs. Valuation

Company Quality

49/ 100

Average

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

Valuation

76/ 100

Cheap

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

24.4x

3Y Median

283.4x

40 monthly readings · mean 282.4x · range 14.6x–1016.6x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 91% below its 3y median of 283.4x. 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 47% below the peer median of 45.7x.

vs. its own history

Cheap

283.4x median over 40 months · -91%

vs. sector peers

Cheap

45.7x median of 4 peers · -47%

vs. generic bands

Fair

15x–35x

EV/EBITDA

24.3x

PEG

0.55

What's Good / What's Bad

🟢 What's Going Well1

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 · 1 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 9.26x — earnings must service borrowings before shareholders see anything.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 91% 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 47% 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 5.9x 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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above -1%✓ 0.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 5.9x
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.
4ROCE stays above 8%✗ 1.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 283.4x✓ 24.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 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 · 3 neutral · 5 weak

Market Cap

₹16 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

24.4x

Fair

Fairly valued against the generic band

P/B Ratio

0.27x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.25

Profitable

Profitable on a per-share basis

ROE

1.2%

Weak

Weak capital efficiency

ROCE

1.4%

Weak

Low return on total capital employed

Debt/Equity

9.26x

High

High leverage

Revenue Growth (YoY)

569.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-34.5%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

0.4%

Weak

Assets generate little profit

Operating Margin

-3.3%

Weak

Thin margins leave little room for error

Net Margin

0.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.41

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.40

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

6.3 / 6.3

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	—	₹11 Cr	₹143 Cr	—
EBITDA	-₹0 Cr	₹0 Cr	₹1 Cr	₹1 Cr	—
EBITDA Margin	—	—	12.1%	0.6%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹1 Cr	₹1 Cr	+44.7%
EPS	₹0.08	₹0.04	₹0.38	—	—
ROE	0.4%	0.2%	1.8%	1.2%	—
ROCE	-0.1%	0.2%	2.2%	1.4%	—
Total Debt	—	—	₹5 Cr	₹5 Cr	—
Free Cash Flow	-₹0 Cr	₹0 Cr	-₹4 Cr	-₹1 Cr	—

🟢 EBITDA has turned positive, from -₹0 Cr to ₹1 Cr.

🔴 EBITDA Margin has fallen from 12.1% to 0.6% over 3 years (-11.5 pts).

🟢 PAT (Net Profit) has grown at 44.7% a year over 3 years.

🟡 ROE has held roughly flat at 1.2% over 3 years.

🟢 ROCE has risen from -0.1% to 1.4% over 3 years (+1.6 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹210 Cr

Total Liabilities

₹154 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

7.5%

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

3 positive3 general

Tirupati Innovar Rights Issue 2026 Date, Price, Allotment, Ratio

IPO Watch, 08 May

Tirupati Innovar shareholders approve stock split and bonus issue

scanx.trade, 23 JulCapital return

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

Tirupati Innovar (BSE:539040) - Stock Analysis

Simply Wall Street, 16 Dec

Tirupati Innovar - 10 penny stocks surged up to 490% in 6 months. Do you own any?

The Economic Times, 03 May

Tirupati Innovar Launches Postal Ballot E-Voting for Share Split and Bonus Issue

scanx.trade, 21 JunCapital return

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

Tirupati Innovar Ltd Approves 1:10 Stock Split, 5:8 Bonus Issue; Key Exits Noted

Whalesbook, 19 JunCapital return

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

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.

DalalBaazaar Thesis

StrongGrowth · Valuation

WeakBusiness Quality · Financial Health · Profitability · Risk

Points for each in the Score ↑

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.

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