🟢 At a Glance
Tara Chand Infra is a rare SME-cum-capex beast that does logistics, construction equipment rentals, and steel processing — all in one. With 25% profit CAGR, a record ₹248 Cr revenue in FY25, and ₹100 Cr fresh capex lined up for FY26, the company is growing fast. But with rising debt and thin ROCE compared to giants, can this crane-wielding multi-modal underdog continue its heavy lifting?
1. 🎬 Introduction with Hook
You know that guy in school who did everything? Cricket, chess, drama, school band — but never topped the class?
That’s Tara Chand Infra.
They do logistics. They rent out cranes. They process steel. They’re on bullet train projects, and they even bought land in Nagpur. But here’s the real story: 5Y revenue CAGR = 17%, profit CAGR = 26%, and a stock that gave 110% in 3 years before correcting.
Now with ₹100 Cr capex planned and 25–30% FY26 growth guidance, the stock wants to break out again.
2. 🏭 Business Model – WTF Do They Even Do?
Tara Chand Infra is a 3-in-1 infrastructure enabler, with verticals that blend well:
1. 🏢 Logistics & Warehousing
- Multi-modal steel logistics
- Warehousing + consignment + inventory stocking
- Handled 1.74 Mn MT of cargo in Q2FY25
2. 🏗️ Construction Equipment Rentals
- Over 300 heavy machines, including:
- Cranes (up to 800MT)
- Piling rigs
- Aerial platforms (up to 68m)
- Clients: L&T, Tata Steel, JK Cement
- Projects: Bullet train, metro, steel plants, refineries
3. ⚙️ Steel Processing & Distribution
- Value-added rebars processed on-site
- Steel cut/bent/delivered at job sites
- Helps clients reduce time + logistics cost
Think of them as the Dream11 of infra execution — they don’t play, but they make the game possible.
3. 📊 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | ₹141 Cr | ₹172 Cr | ₹248 Cr |
| Net Profit | ₹9 Cr | ₹16 Cr | ₹25 Cr |
| OPM % | 27% | 32% | 31% |
| ROCE | 16% | 16% | 20% |
| ROE | 13.2% | 18.3% | 23.0% |
✅ Margins strong
✅ ROE climbing
⚠️ Revenue base still small
4. 💰 Valuation – Is It Cheap, Meh, or Crack?
- CMP: ₹75.2
- Market Cap: ₹593 Cr
- TTM EPS: ₹3.15
- P/E: 23.8x
- P/B: 4.89x
- Dividend Yield: 0.27%
Compare that to peers like CMS Info (22x), NESCO (21x), and Quess (23x), and Tara Chand looks fairly priced for a midcap infra play, but with better margin profile than many of them.
5. 🔥 What’s Cooking – News, Triggers, Drama
🛠️ FY25 Highlights:
- Record ₹248 Cr revenue (up 44% YoY)
- PAT of ₹25 Cr (up 56%)
- ₹145 Cr capex deployed in cranes/equipment
- Awarded ₹10.5 Cr piling contract from JK Cement
🚀 FY26 Plans:
- ₹100 Cr more capex coming
- 25–30% top-line growth guidance
- 7 new cranes added in Q1FY26
🧱 Land Bank:
- Bought 30,000 sq.m land in Nagpur (₹9 Cr)
The company is bulking up its asset base to ride the infrastructure boom — roads, refineries, cement plants, you name it.
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Borrowings | ₹87 Cr | ₹85 Cr | ₹112 Cr |
| Net Worth | ₹72 Cr | ₹95 Cr | ₹122 Cr |
| Total Assets | ₹227 Cr | ₹257 Cr | ₹391 Cr |
| Reserves | ₹58 Cr | ₹80 Cr | ₹106 Cr |
🧠 EduTake:
Capex-led growth is debt-fueled. D/E now ~0.9x — manageable but needs watching if capex exceeds projections.
7. 💵 Cash Flow – Sab Number Game Hai
| FY | CFO | Capex | FCF |
|---|---|---|---|
| FY23 | ₹42 Cr | ₹26 Cr | ₹16 Cr |
| FY24 | ₹46 Cr | ₹55 Cr | -₹9 Cr |
| FY25 | ₹56 Cr | ₹58 Cr | -₹2 Cr |
⚠️ Free Cash Flow negative for 2 years. But this is intentional — cranes don’t come cheap.
8. 📐 Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 20% 👍 |
| ROE | 23% 🚀 |
| OPM | 31% 💪 |
| Debtor Days | 88 ↓ from 112 |
| Inventory Days | 46 |
| Days Payable | 176 (efficient supply chain) |
| CCC | -42 days (working capital generator) |
Their cash conversion cycle is now NEGATIVE — rare for an infra company. That’s elite ops.
9. 💼 P&L Breakdown – Show Me the Money
- FY23: ₹141 Cr sales → ₹9 Cr PAT
- FY24: ₹172 Cr sales → ₹16 Cr PAT
- FY25: ₹248 Cr sales → ₹25 Cr PAT
Net margins = 10%+ despite rental biz, which usually carries more depreciation
EPS:
- FY23: ₹1.37
- FY24: ₹2.13
- FY25: ₹3.15
The PAT growth is catching up to topline capex. If FY26 sees 30% rev growth → PAT can hit ₹30–35 Cr range.
10. 🥊 Peer Comparison – Who Else in the Game?
| Company | P/E | ROCE | OPM | Size (Mkt Cap) |
|---|---|---|---|---|
| Tara Chand | 23.8x | 20% | 31% | ₹593 Cr |
| CMS Info | 22.9x | 23% | 26% | ₹8,500 Cr |
| NESCO | 21.0x | 21% | 59% | ₹8,100 Cr |
| Quess | 22.7x | 10% | 1.75% | ₹4,500 Cr |
📊 Verdict: Highest margins among midcap peers. Needs revenue scale-up to match their valuation comfort.
11. 🧬 Miscellaneous – Shareholding, Promoters
| Holder | % |
|---|---|
| Promoters | 70.67% ✅ |
| FIIs | 0.14% (entered recently) |
| DIIs | 0.0% |
| Public | 29.19% |
👀 Promoter stake dropped from 74.7% to 70.7% in 2 years, but reversed trend last quarter (+1.07%).
No pledging. No buzzwords. Just cranes and cash.
12. 🧠 EduInvesting Verdict™
Tara Chand Infra isn’t trying to be fancy. It’s renting cranes, hauling steel, and stacking cash.
✅ High-margin logistics + infra biz
✅ Asset-heavy but ops efficient
✅ ROCE and ROE improving
⚠️ Needs FCF discipline and scale-up
🎯 Fair Value Estimate (FV Range):
Assuming:
- FY26E EPS = ₹3.90–4.20
- Reasonable P/E = 18–22x
FV Range = ₹70 – ₹92
At ₹75, it’s neither cheap nor hyped. If they deliver ₹30–35 Cr PAT in FY26 and stay capital-disciplined, rerating is possible. But leverage and execution are key.
✍️ Written by Prashant | 📅 July 9, 2025
Tags: Tara Chand Infra, Infra Capex Stocks, Crane Rental India, SME Logistics, Bullet Train Projects, High Margin Stocks, EduInvesting, Steel Logistics, Construction Equipment Rentals, FY25 Results
