Taylormade Renewables Limited

Technology — Solar · BSE

₹63.28+₹3.01 (+4.99%)

DalalBaazaar Score

41 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Taylormade Renewables Limited provides renewable energy and environmental solutions in India.

IndustrySolar

SectorTechnology

Employees66

Annual revenue₹48 Cr

How does it make money?

Turns over ₹48 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 66 employees supports ₹73.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹73.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO 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 3.5% 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 ROE32.0%

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 +145% while net margin moved -64% 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+145%

Margin effect-64%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 3.5% is below 10% — capital is not working hard
✗ ROCE has fallen by 12.0 points — returns are eroding
✗ EBITDA margin of 10.8% is thin — little cushion if costs rise
✗ Net margin of 2.6% is slim
• Revenue has compounded at 34.8% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

42/ 100

Weak

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

Valuation

32/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

87.9x

3Y Median

33.2x

40 monthly readings · mean 105.1x · range 5.3x–374.0x

Sector Median

16.5x

median of 4 sector peers

⚠️Current valuation is approximately 165% above its 3y median of 33.2x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 431% above the peer median of 16.5x.

vs. its own history

Expensive

33.2x median over 40 months · +165%

vs. sector peers

Expensive

16.5x median of 4 peers · +431%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

18.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.22x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 10.1% to 1.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 15.6% to 3.5% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 4 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 548% over 3 years, from ₹3 Cr to ₹21 Cr.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 27.6 points, from 38.5% to 10.8%.
🔴Inventory building faster than salesFinancial
Inventory up 384% against revenue up 145% — stock may not be moving.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 32.8x to 2.9x.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 26% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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 38.5% to 10.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 4.0x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
The price already assumes success
The stock trades 165% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 10.1% to 1.8%. 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.
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.

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

1Revenue growth stays above 26% a year✓ 34.8% CAGR
Latest reported year was -88.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 10.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.0x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹11 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 2.9x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

3 / 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 · 2 neutral · 6 weak

Market Cap

₹78 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

87.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.81x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.72

Profitable

Profitable on a per-share basis

ROE

1.8%

Weak

Weak capital efficiency

ROCE

3.5%

Weak

Low return on total capital employed

Debt/Equity

0.22x

Low

Conservative leverage

Revenue Growth (YoY)

-88.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

-85.7%

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

-₹11 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-56.2%

Weak

Thin margins leave little room for error

Net Margin

2.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.45

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.03

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

57.3 / 61.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

61.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹20 Cr	₹47 Cr	₹71 Cr	₹48 Cr	+34.8%
EBITDA	₹8 Cr	₹20 Cr	₹20 Cr	₹5 Cr	-11.7%
EBITDA Margin	38.5%	41.8%	28.6%	10.8%	—
PAT (Net Profit)	₹2 Cr	₹11 Cr	₹12 Cr	₹2 Cr	-3.7%
EPS	₹2	₹9.9	₹10.79	₹1.42	-10.8%
ROE	10.1%	17.6%	13.0%	1.8%	—
ROCE	15.6%	24.7%	19.7%	3.5%	—
Total Debt	₹3 Cr	₹7 Cr	₹10 Cr	₹21 Cr	+86.5%
Free Cash Flow	₹0 Cr	-₹24 Cr	-₹29 Cr	-₹11 Cr	—

🟢 Revenue has grown at 34.8% a year over 3 years.

🔴 EBITDA has shrunk at 11.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 38.5% to 10.8% over 3 years (-27.6 pts).

🔴 PAT (Net Profit) has shrunk at 3.7% a year over 3 years.

🔴 EPS has shrunk at 10.8% a year over 3 years.

🔴 ROE has fallen from 10.1% to 1.8% over 3 years (-8.3 pts).

🔴 ROCE has fallen from 15.6% to 3.5% over 3 years (-12.0 pts).

🔴 Total Debt has grown at 86.5% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹11 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹157 Cr

Total Liabilities

₹60 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹8 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

57.8%

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

1 negative5 general

Taylormade Renewables board to consider fund raise proposal on Oct 19

scanx.trade, 16 Oct

Taylormade Renewables Ltd. Upper Circuit Today: Price, Data and Peers

Univest, 21 Sept

Taylormade Renewables Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Taylormade Renewables FY26 profit falls, auditors flag issues

scanx.trade, 26 MayResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Indo Borax & Chemicals Ltd leads losers in 'B' group

Business Standard, 21 Jul

Water distribution stocks in trouble? Concord Enviro, EMS to VA Tech under pressure- reason behind sell-off, outlook

Livemint, 16 Sept

Watch Items

Revenue growth is negative (-88.8%) on the latest reported period — check if this is one-off or a trend.
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

MiddlingFinancial Health

WeakBusiness Quality · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 4 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; Interest cover stays above 3x · see Key things to watch ↑