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Check Before You Invest : TARC Ltd

BSE: 543249 NSE: TARC ISIN: INE0EK901012
  |   Sector:  Construction & Infrastructure   |   Industry:  Construction - Real Estate

Snapshot

Q.1 Which industry/sub-sector does TARC Ltd belong to?
TARC Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.
Q.2 Is TARC Ltd a good quality company?
TARC Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is TARC Ltd undervalued or overvalued?
TARC Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is TARC Ltd a good buy now?
TARC Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of TARC Ltd?
TARC Ltd revenue growth is -77.4% for FY-2025 , which is below its 5 year CAGR of -33.8% , indicating slower growth.
Q.2 Gross Profit margin of TARC Ltd?
TARC Ltd Gross profit margin which is the profit after deduction of direct costs, is -711% for FY-2025 , which is below its 5 year median of 4.3% , indicating decreasing margins.
Q.3 Operating Profit Margin of TARC Ltd?
TARC Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -579.61% for FY-2025 , which is below its 5 year median of -23.56% indicating decreasing margins.
Q.4 Net Profit Margin of TARC Ltd?
TARC Ltd Net Profit Margin is -770.11% for FY-2025 , is below with its 5 year median of 2.81%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin -711 4.3
Operating Profit Margin -579.61 -23.56
Net Profit Margin -770.11 2.81
Q.5 Return on Asset of TARC Ltd?
TARC Ltd Return on Asset is -3.7%, which is below its 5 year historical median of 0.17%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of TARC Ltd?
TARC Ltd Return on equity is -8.02% for FY-2025 , which is below its historical median of 0.34%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of TARC Ltd?
TARC Ltd Return on capital employed is 0.03% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of TARC Ltd?
TARC Ltd Cash conversion cycle is 25112 days, above its historical median of 1717 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover - 0.06
ROE -8.02 0.34
ROCE 0.03 0.54
Cash Conversion Cycle 25112 days 1717 days
Q.9 Debt to Equity ratio of TARC Ltd?
TARC Ltd Debt-to-Equity ratio is 0.93 , which is above with the industry average of 0.23 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of TARC Ltd?
TARC Ltd Debt to cash flow from operations is 4.55 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of TARC Ltd?
Promoters hold 65.12% of the TARC Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of TARC Ltd vs industry peers?
TARC Ltd revenue CAGR is -33.78% , compared to the industry median CAGR of 0.00% , indicating stable growth and maintaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 13.7 18.4
Gross Profit -99.5 1.2
Operating Profit -90 0.7
Net Profit -105 0.7
Operating Efficiency
Current Level Industry Median
Asset Turnover - 0.11
ROE -8.02 1.36
ROCE 0.03 3.93
Cash Conversion Cycle (days) 25112.01 440

Valuation & price assessment

Q.1 Stock return of TARC Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 37.19% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 37.2% 41.2% -6.8%
Q.3 Valuation ratios of TARC Ltd vs historical?
The current P/E is similar that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - 0.00 40.36
Price to Book 3.64 1.14 1.49
Price to Sales 106.8 12.72 4.61
EV to EBITDA -25.07 -27.78 14.16

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