1. At a Glance
Tankup Engineers Ltd (TEL) isn’t building war tanks, but it is stacking serious numbers building tanks — for fuel, water, gas, and specialty industrial uses. Incorporated in 2020, it boasts a ₹193 Cr market cap and a scorching-hot P/E of 127. ROE? A heroic 29.4%. Cash conversion cycle? Uh, let’s just say… it needs a compass.
2. Introduction with Hook
Imagine if the guy who built your local diesel bowser suddenly got listed at ₹365/share and claimed nearly ₹1 Cr quarterly profit — you’d raise an eyebrow, right?
Now imagine that same company posted:
- 3-Year Profit CAGR of 212%
- ROE of 59.4% over 3 years
- 20.93% ROCE in FY25
And slapped a P/E of 127 on itself. Is this SME hype? Or is this SME heavy metal brilliance?
3. Business Model (WTF Do They Even Do?)
Tankup builds custom-engineered superstructures — basically, heavy-duty, large-capacity industrial tanks on wheels and frames:
- Liquid & Gas tankers
- Bulk solids storage tanks
- Hazardous material containers
- Pressure-tested mobile units
Clients range from oil companies, food logistics providers, chemicals, and infra EPCs.
Think: engineering meets logistics, for products too dangerous, too big, or too specific for regular transport.
4. Financials Overview
| Year | Revenue (Cr) | EBITDA (Cr) | PAT (Cr) | OPM % | EPS (₹) |
|---|---|---|---|---|---|
| FY22 | ₹1.40 | ₹0.09 | ₹0.05 | 6.4% | 3.33 |
| FY23 | ₹11.81 | ₹1.29 | ₹0.79 | 10.9% | 31.6 |
| FY24 | ₹19.42 | ₹3.51 | ₹2.57 | 18.1% | 102.8 |
| FY25 | ₹20.30 | ₹2.50 | ₹1.52 | 12.3% | 3.90 |
Note: EPS crash due to IPO-linked equity expansion. PAT almost halved in FY25. Alarm or adjustment? Let’s dig deeper.
5. Valuation
- CMP: ₹365
- EPS FY25: ₹3.90
- P/E (TTM): 127x
- Book Value: Not published on Screener
- ROE: 29.4%
- ROCE: 20.9%
Fair Value Range: ₹150–₹225
PEG ratio is off the charts. Valuation is implying consistent 100% PAT growth ahead. Priced for dreams, not for balance sheets.
6. What’s Cooking – News, Triggers, Drama
- Director Appointments (Q1FY26): Added Rajneesh Gupta as Independent Director
- Clarifications on Financials: BSE flagged missing financial data for pre-listing periods
- Shareholder Base: Still SME-thin at 687 investors
- Working Capital Woes: CCC jumped to 330+ days — Houston, we have a liquidity problem?
- Growth Slowdown: FY25 topline barely grew vs FY24
The stock may look hot, but the underlying engine’s cooling.
7. Balance Sheet
| Year | Equity (Cr) | Reserves (Cr) | Borrowings (Cr) | Total Liabilities (Cr) | Total Assets (Cr) |
|---|---|---|---|---|---|
| FY22 | ₹0.15 | ₹0.05 | ₹1.42 | ₹2.32 | ₹2.32 |
| FY24 | ₹0.25 | ₹3.43 | ₹3.70 | ₹10.36 | ₹10.36 |
| FY25 | ₹3.90 | ₹2.76 | ₹9.47 | ₹21.53 | ₹21.53 |
Key Takeaways:
- Borrowings more than doubled
- Equity jump from ₹0.25 Cr to ₹3.9 Cr — IPO-led
- Reserves actually dropped in FY25 (dividend or loss adj.?)
8. Cash Flow – Sab Number Game Hai
| Type | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Operating Cash Flow | -0.60 | -0.66 | -0.80 | -5.80 |
| Investing Cash Flow | -0.54 | -0.30 | -0.14 | -0.91 |
| Financing Cash Flow | ₹1.22 | ₹1.10 | ₹0.80 | ₹6.73 |
| Net Cash Flow | ₹0.08 | ₹0.14 | -₹0.15 | ₹0.01 |
Comment:
Operations haven’t produced positive cash flow since inception. All activity funded via equity and borrowings. Classic early-stage signs — or red flags, depending on your appetite.
9. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE % | 42.6% | 62.8% | 20.9% |
| ROE % | 59.4% | 40.2% | 29.4% |
| Debtor Days | 98.9 | 59.2 | 110.0 |
| Inventory Days | 151.9 | 170.6 | 350.8 |
| Payable Days | 135.2 | 51.5 | 130.5 |
| CCC (Days) | 115.7 | 178.2 | 330.3 |
Verdict:
ROE sexy. CCC is straight-up stressy. Too much inventory = too much working capital locked.
10. P&L Breakdown – Show Me the Money
| Year | Sales (Cr) | EBITDA (Cr) | PAT (Cr) | EPS (₹) | OPM % |
|---|---|---|---|---|---|
| FY23 | ₹11.8 | ₹1.29 | ₹0.79 | 31.60 | 10.9% |
| FY24 | ₹19.4 | ₹3.51 | ₹2.57 | 102.8 | 18.1% |
| FY25 | ₹20.3 | ₹2.50 | ₹1.52 | 3.90 | 12.3% |
FY25 = Margins fell, PAT fell, EPS cratered. But valuation… stayed sky high. Hmmm.
11. Peer Comparison
| Company | P/E | ROCE % | PAT (Cr) | Sales (Cr) | MCap (Cr) |
|---|---|---|---|---|---|
| Altius Telecom | 53.5 | 8.2 | ₹839.9 | ₹19,580.9 | ₹44,949 |
| Sustainable Ener. | 25.2 | 5.9 | ₹138.9 | ₹721.9 | ₹3,499 |
| Tankup Engineers | 127 | 20.9 | ₹1.52 | ₹20.3 | ₹193 |
In this SME circus, Tankup is the trapeze artist — flashiest P/E but smallest net.
12. Miscellaneous – Shareholding, Promoters
| Category | Apr ’25 Holding |
|---|---|
| Promoters | 73.65% |
| FIIs | 1.72% |
| DIIs | 10.61% |
| Public | 14.01% |
| No. of SHs | 687 |
Solid promoter hold. Institutions sniffing around. Public still sparse — early innings?
13. EduInvesting Verdict™
Tankup Engineers is the kind of stock that makes analysts squint.
On one side:
- Strong ROE, asset-light model
- Custom manufacturing moat
- SME buzz, strong promoter skin-in-game
But then:
- Operating cash flow is negative
- FY25 PAT shrank while valuation expanded
- CCC > 330 days = working capital red alert
- PE of 127 is… aspirational
It’s an SME with ambition, but unless execution & collections scale faster, the valuation might pop like an overfilled LPG cylinder.
Metadata
– Written by EduInvesting Research | July 15, 2025
– Tags: Tankup Engineers, SME IPO, Specialty Manufacturing, Pressure Vessels, Custom Engineering, High PE Stock, Working Capital Risk
