MoneyWorks4Me

Check Before You Invest : Tikona Communication Ltd

BSE: 513343 NSE: GFSTEELS ISIN: INE534A01028
  |   Sector:  Metals & Mining   |   Industry:  Steel & Iron Products

Snapshot

Q.1 Which industry/sub-sector does Tikona Communication Ltd belong to?
Tikona Communication Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.
Q.2 Is Tikona Communication Ltd a good quality company?
Tikona Communication Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Tikona Communication Ltd undervalued or overvalued?
Tikona Communication Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 44.1 -
Price to Book -32.18 -5.19
Price to Sales 3.56 1.34
EV to EBITDA 37.67 -81.79
Q.4 Is Tikona Communication Ltd a good buy now?
Tikona Communication Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

Q.1 Gross Profit margin of Tikona Communication Ltd?
Tikona Communication Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.7% for FY-2026, which is above its 5-year median of -13.1%, indicating increasing margins.

Q.2 Operating Profit Margin of Tikona Communication Ltd?
Tikona Communication Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.07% for FY-2026, which is above its 5-year median of -13.04% indicating increasing margins.

Q.3 Net Profit Margin of Tikona Communication Ltd?
Tikona Communication Ltd Net Profit Margin is 1.72% for FY-2026, is above its 5-year median of -19.4%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 1.7 -13.1
Operating Profit Margin (%) 7.07 -13.04
Net Profit Margin (%) 1.72 -19.4

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Tikona Communication Ltd?
Tikona Communication Ltd Return on Asset is 2.71%, which is above its 5-year historical median of -260.9%, indicating improved asset utilization efficiency.

C: How much debt does the business have and is it at a sustainable level?

Q.5 Debt to Equity ratio of Tikona Communication Ltd?
Tikona Communication Ltd Debt-to-Equity ratio is -1.25, which is lower the industry average of 0.31, indicating lower debt levels in the industry.

Q.6 Debt to cash flow from operations of Tikona Communication Ltd?
Tikona Communication Ltd Debt to cash flow from operations is -12.37, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Tikona Communication Ltd?

Q.1 Promoter shareholding and pledge status of Tikona Communication Ltd?
Promoters hold 70.18% of the Tikona Communication Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Tikona Communication Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Tikona Communication Ltd vs industry peers?
Tikona Communication Ltd revenue CAGR is 57.98%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) - -
Gross Profit Growth (%) 0 14.9
Operating Profit Growth (%) 0 12.2
Net Profit Growth (%) 0 24.6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.57 1.28
ROE (%) 26 8.92
ROCE (%) 23.95 11.77
Cash Conversion Cycle (days) 21.72 73

Valuation & price assessment

Q.1 Stock return of Tikona Communication Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 52.33% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 52.3% 62.4% 290.6%
Q.2 Valuation ratios of Tikona Communication Ltd vs historical?
The current P/E ratio of 44.1 is higher than its historical median of , indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 44.1 - 18.37
Price to Book -32.18 -5.19 1.63
Price to Sales 3.56 1.34 0.79
EV to EBITDA 37.67 -81.79 10.56

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