Check Before You Invest : Tirupati Forge Ltd

Snapshot

Q.1 Which industry/sub-sector does Tirupati Forge Ltd belong to?

Tirupati Forge Ltd belongs to the Automobiles sector, operating specifically within the Forgings segment.

Q.2 Is Tirupati Forge Ltd a good quality company?

Tirupati Forge Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Tirupati Forge Ltd undervalued or overvalued?

Tirupati Forge Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Tirupati Forge Ltd a good buy now?

Tirupati Forge 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 Tirupati Forge Ltd?

Tirupati Forge Ltd revenue growth is 4.5% for FY-2025, which is below its 5-year CAGR of 33.02%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Tirupati Forge Ltd?

Tirupati Forge Ltd Return on capital employed is 13.1% for FY-2025, which is below its 5-year historical median of 19.26%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Tirupati Forge Ltd?

Tirupati Forge Ltd Return on Asset is 7.14%, which is below its 5-year historical median of 10.6%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Tirupati Forge Ltd?

Tirupati Forge Ltd Return on equity is 10.65% for FY-2025, which is below its 5-year historical median of 15.42%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Tirupati Forge Ltd?

Tirupati Forge Ltd Cash conversion cycle is 93 days, in line with its 5-year historical median of 94 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.05	1.76
ROE	10.65	15.42
ROCE	13.1	19.26
Cash Conversion Cycle	93 days	94 days

Q.6 Gross Profit margin of Tirupati Forge Ltd?

Tirupati Forge Ltd Gross profit margin which is the profit after deduction of direct costs, is 13% for FY-2025, which is above its 5-year median of 12.2%, indicating increasing margins.

Q.7 Operating Profit Margin of Tirupati Forge Ltd?

Tirupati Forge Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.24% for FY-2025, which is above its 5-year median of 12% indicating increasing margins.

Q.8 Net Profit Margin of Tirupati Forge Ltd?

Tirupati Forge Ltd Net Profit Margin is 6.83% for FY-2025, is in line with with its 5-year median of 6.83%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	13	12.2
Operating Profit Margin	13.24	12
Net Profit Margin	6.83	6.83

Q.9 Debt to Equity ratio of Tirupati Forge Ltd?

Tirupati Forge Ltd Debt-to-Equity ratio is 0.18, which is lower with the industry average of 0.49, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Tirupati Forge Ltd?

Tirupati Forge Ltd Debt to cash flow from operations is 3.02, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Tirupati Forge Ltd?

Promoters hold 49.01% of the Tirupati Forge Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Tirupati Forge Ltd vs industry peers?

Tirupati Forge Ltd revenue CAGR is 33.02%, compared to the industry median CAGR of 14.05%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	4.5	14.1
Gross Profit Growth	25	25.5
Operating Profit Growth	15.4	18.7
Net Profit Growth	14.3	26

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.05	0.92
ROE	10.65	15.17
ROCE	13.1	14.66
Cash Conversion Cycle (days)	92.5	112

Valuation & price assessment

Q.1 Stock return of Tirupati Forge Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 9.78% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	9.8%	66.4%	40.8%

Q.3 Valuation ratios of Tirupati Forge Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 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	93.16	27.06	33.04
Price to Book	4.85	4.28	3.77
Price to Sales	3.82	1.87	1.87
EV to EBITDA	31.53	14.08	16.81

Check more companies

1. Happy Forgings

2. Ramkrishna Forgings

3. Balu Forge Industrie

4. MM Forgings

8. LGB Forge

10. Hilton Metal Forging

Check trending companies

1. JSW Infrastructure Ltd.

2. Aditya Birla Fashion and Retail Ltd.

3. Zydus Lifesciences Ltd.

4. Techno Electric & Engineering Company Ltd.

5. Cello World Ltd.