MoneyWorks4Me

Check Before You Invest : Tempsens Instruments (India) Ltd

BSE: 544886 NSE: TEMPSENS ISIN: INE1KZI01025
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering - Industrial Equipments

Snapshot

Q.1 Which industry/sub-sector does Tempsens Instruments (India) Ltd belong to?
Tempsens Instruments (India) Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.
Q.2 Is Tempsens Instruments (India) Ltd a good quality company?
Tempsens Instruments (India) Ltd is a good quality company, based on a consistently good 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 Tempsens Instruments (India) Ltd undervalued or overvalued?
Tempsens Instruments (India) 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 72.77 -
Price to Book 8.29 -
Price to Sales 11.02 -
EV to EBITDA 44.3 -
Q.4 Is Tempsens Instruments (India) Ltd a good buy now?
Tempsens Instruments (India) 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

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.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Tempsens Instruments (India) Ltd?
Tempsens Instruments (India) Ltd revenue growth is 17.5% for FY-2026, which is below its 5-year CAGR of 26.29%, indicating slower growth.

Q.2 Gross Profit margin of Tempsens Instruments (India) Ltd?
Tempsens Instruments (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 23.4% for FY-2026, which is in line with its 5-year median of 23.1%, indicating stable margins.

Q.3 Operating Profit Margin of Tempsens Instruments (India) Ltd?
Tempsens Instruments (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 22.62% for FY-2026, which is above its 5-year median of 21.4% indicating increasing margins.

Q.4 Net Profit Margin of Tempsens Instruments (India) Ltd?
Tempsens Instruments (India) Ltd Net Profit Margin is 15.97% for FY-2026, is in line with its 5-year median of 15.83%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 23.4 23.1
Operating Profit Margin (%) 22.62 21.4
Net Profit Margin (%) 15.97 15.83

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Tempsens Instruments (India) Ltd?
Tempsens Instruments (India) Ltd Return on Asset is 11.73%, which is below its 5-year historical median of 16.88%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Tempsens Instruments (India) Ltd?
Tempsens Instruments (India) Ltd Return on capital employed is 18.58% for FY-2026, which is below its 5-year historical median of 26.94%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Tempsens Instruments (India) Ltd?
Tempsens Instruments (India) Ltd Return on equity is 15.34% for FY-2026, which is below its 5-year historical median of 22.64%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Tempsens Instruments (India) Ltd?
Tempsens Instruments (India) Ltd Cash conversion cycle is 122 days, above its 5-year historical median of 104 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.75 1.16
ROE (%) 15.34 22.64
ROCE (%) 18.58 26.94
Cash Conversion Cycle 122 days 104 days

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

Q.9 Debt to Equity ratio of Tempsens Instruments (India) Ltd?
Tempsens Instruments (India) Ltd Debt-to-Equity ratio is 0.16, which is lower the industry average of 0.18, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Tempsens Instruments (India) Ltd?
Tempsens Instruments (India) Ltd Debt to cash flow from operations is 1.85, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Tempsens Instruments (India) Ltd?

Q.1 Promoter shareholding and pledge status of Tempsens Instruments (India) Ltd?
Promoters hold 65.67% of the Tempsens Instruments (India) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Tempsens Instruments (India) Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Tempsens Instruments (India) Ltd vs industry peers?
Tempsens Instruments (India) Ltd revenue CAGR is 26.29%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 17.5 0
Gross Profit Growth (%) 15.2 21.5
Operating Profit Growth (%) 11 21.1
Net Profit Growth (%) 12.7 27
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.75 0.89
ROE (%) 15.34 13.01
ROCE (%) 18.58 16.17
Cash Conversion Cycle (days) 122.46 97

Valuation & price assessment

Q.1 Stock return of Tempsens Instruments (India) Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Tempsens Instruments (India) Ltd vs historical?
The current P/E ratio of 72.77 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 72.77 - 29.36
Price to Book 8.29 - 2.91
Price to Sales 11.02 - 2.93
EV to EBITDA 44.3 - 15.77

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