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Check Before You Invest : TCM Ltd

BSE: 524156 NSE: ISIN: INE034F01010
  |   Sector:  Chemicals & Fertilizers   |   Industry:  Chemicals

Snapshot

Q.1 Which industry/sub-sector does TCM Ltd belong to?
TCM Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.
Q.2 Is TCM Ltd a good quality company?
TCM Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is TCM Ltd undervalued or overvalued?
TCM Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is TCM Ltd a good buy now?
TCM Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of TCM Ltd?
TCM Ltd revenue growth is -21.9% for FY-2025 , which is below its 5 year CAGR of 93.2% , indicating slower growth.
Q.2 Gross Profit margin of TCM Ltd?
TCM Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.3% for FY-2025 , which is above its 5 year median of 1% , indicating increasing margins.
Q.3 Operating Profit Margin of TCM Ltd?
TCM Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -2.91% for FY-2025 , which is in line with its 5 year median of -2.91% indicating stable margins.
Q.4 Net Profit Margin of TCM Ltd?
TCM Ltd Net Profit Margin is 12.74% for FY-2025 , is above with its 5 year median of 0.64%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 13.3 1
Operating Profit Margin -2.91 -2.91
Net Profit Margin 12.74 0.64
Q.5 Return on Asset of TCM Ltd?
TCM Ltd Return on Asset is 3.64%, which is above its 5 year historical median of 0.25%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of TCM Ltd?
TCM Ltd Return on equity is 8.7% for FY-2025 , which is above its historical median of 0%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of TCM Ltd?
TCM Ltd Return on capital employed is 8.86% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of TCM Ltd?
TCM Ltd Cash conversion cycle is 495 days, above its historical median of 257 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.29 0.11
ROE 8.7 -
ROCE 8.86 -
Cash Conversion Cycle 495 days 257 days
Q.9 Debt to Equity ratio of TCM Ltd?
TCM Ltd Debt-to-Equity ratio is 0.30 , which is above with the industry average of 0.13 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of TCM Ltd?
TCM Ltd Debt to cash flow from operations is -1.04 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of TCM Ltd?
Promoters hold 49.51% of the TCM Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of TCM Ltd vs industry peers?
TCM Ltd revenue CAGR is 93.15% , compared to the industry median CAGR of 7.7% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 24.7 202
Gross Profit 3.3 23.6
Operating Profit -0.9 24
Net Profit 3.2 12
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.29 0.93
ROE 8.7 10.18
ROCE 8.86 13.07
Cash Conversion Cycle (days) 494.88 62

Valuation & price assessment

Q.1 Stock return of TCM Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 1.7% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 1.7% 10.7% 13% 27.6%
Q.3 Valuation ratios of TCM Ltd vs historical?
The current P/E is higher 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 19.49 0.00 41.15
Price to Book 1.07 0.00 2.38
Price to Sales 1.85 13.31 1.93
EV to EBITDA 14.8 -18.90 13.71

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