Tunwal E-Motors Limited

Sector n/a · NSE

₹60.80₹0.00 (0.00%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Reasonable but unspectacular business quality, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

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

How does it make money?

Turns over ₹277 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 13.6% 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.

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 +262% while net margin moved -5% 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+262%

Margin effect-5%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ 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

62/ 100

Average

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

Valuation

35/ 100

Expensive

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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

17.5x

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 45.3% to 10.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 31.8% to 13.6% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🟡Debt is increasingFinancial
Total debt is up 44% over 3 years.
🟡Inventory building faster than salesFinancial
Inventory up 314% against revenue up 262% — stock may not be moving.

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?

Returns on shareholder capital are falling
ROE has dropped from 45.3% to 10.2%. 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.
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

1Revenue growth stays above 40% a year✓ 53.5% CAGR
Latest reported year was 55.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 6%✓ 7.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹5 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 11%✓ 13.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 9 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 8 neutral · 1 weak

Market Cap

₹351 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

10.2%

Moderate

Moderate capital efficiency

ROCE

13.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.22x

Low

Conservative leverage

Revenue Growth (YoY)

55.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

8.8%

Modest

Slow profit growth

Dividend Yield

None

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

Free Cash Flow

-₹5 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

12.9%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

4.6%

Average

Average bottom-line conversion

Current Ratio

2.22

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

25.5 / 25.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

32.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹77 Cr	₹105 Cr	₹179 Cr	₹277 Cr	+53.5%
EBITDA	₹7 Cr	₹19 Cr	₹18 Cr	₹21 Cr	+47.4%
EBITDA Margin	8.7%	17.8%	10.0%	7.7%	—
PAT (Net Profit)	₹4 Cr	₹12 Cr	₹12 Cr	₹13 Cr	+51.0%
EPS	₹0.67	₹2.14	₹2.31	—	—
ROE	45.3%	57.5%	11.5%	10.2%	—
ROCE	31.8%	59.0%	15.1%	13.6%	—
Total Debt	₹19 Cr	₹21 Cr	₹33 Cr	₹27 Cr	+12.8%
Free Cash Flow	-₹4 Cr	-₹1 Cr	-₹69 Cr	-₹5 Cr	—

🟢 Revenue has grown at 53.5% a year over 3 years.

🟢 EBITDA has grown at 47.4% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 7.7% over 3 years.

🟢 PAT (Net Profit) has grown at 51.0% a year over 3 years.

🔴 ROE has fallen from 45.3% to 10.2% over 3 years (-35.1 pts).

🔴 ROCE has fallen from 31.8% to 13.6% over 3 years (-18.2 pts).

🔴 Total Debt has grown at 12.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹218 Cr

Total Liabilities

₹92 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

₹9 Cr

Capex

-₹14 Cr

Recent News

2 positive4 general

Jhumarmal Pannaram Tunwal, Promoter, Chairman & Managing Director at Tunwal E-Motors Ltd.

Energetica India Magazine, 14 Oct

Tunwal E-Motors Ltd Peer Comparison – Compare with Others

Value Research, 31 Aug

Tunwal FY26 revenue surges 55% to ₹276.84 crore

scanx.trade, 26 MayResults

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

Tunwal E-Motors Limited's (NSE:TUNWAL) Stock Has Shown Weakness Lately But Financial Prospects Look Decent: Is The Market Wrong?

Simply Wall Street, 09 Jan

Tunwal E-Motors FY26 Revenue Jumps 55% to Rs 276.84 Crore; PAT Rises 57%

Autocar Professional, 02 JunResults

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

Tunwal E-Motors Approves Preferential Issue of Up to 34 Lakh Convertible Warrants Worth ₹10.20 Crore

SMEStreet, 16 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingValuation

WeakBusiness Quality · 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.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑