1. At a Glance
Tembo Global Industries Ltd is that microcap gym bro who just deadlifted ₹743 Cr in FY25 revenue and quietly walked off. With an84% CAGR in profits over 5 yearsand a36.7% ROE, this metal-fabrication marvel has gone from backbencher to class-topper. And now? It has a₹1,350 Cr order bookand one foot each in the solar and defence playgrounds. Lift heavy. Scale fast. Repeat.
2. Introduction – From Pipe Fittings to Flexing Muscles in Defence
Some companies build bolts and brackets. Tembo builds the backbone—literally. From being a small-time metal bender in 2010, the company has now become a rising player in engineered supports, anchors, vibration-control gear, and ductile pipe installations.
Its latest move? Diversifying into thesolar EPCanddefence suppliessegment—just to spice things up. The Q1FY26 press release reads like a hype poster: new plant, record order book, and “massive growth visibility” (their words, not ours).
But don’t let the 12x P/E fool you—this is not a sleepy metal company. It’s a ROCE-churning, capex-stretching, profit-compounding beast that’s just getting started.
3. Business Model – WTF Do They Even Do?
Tembo Global Industries manufactures metal products for industrial and commercial use cases. Their main lines of business include:
- Pipe support systems for infrastructure
- Fasteners, clamps, and anchors (think: giant nuts & bolts with an attitude)
- HVAC brackets and anti-vibration solutions
- Fabrication and installation of ductile and HDB pipes
- MS plates and steel structures
- Solar EPC projects and components (new vertical)
- Defence-grade support systems (emerging vertical)
Their client list? A mix of OEMs, infra developers, industrial EPC contractors, and utilities. It’s a B2B playground where quality certification (UL/FM) is the passport—and Tembo’s got it stamped.
4. Financials Overview – ROE So High, Even Banks Are Jealous
FY25 Revenue (TTM): ₹850 CrFY25 PAT (TTM): ₹65 CrEPS (TTM): ₹50.45Stock P/E: 12xBook Value: ₹142ROE: 36.7%ROCE: 31.4%OPM (FY25): 12%YoY Revenue Growth: 93%YoY PAT Growth: 264%
That’s not a balance sheet, that’s a performance report from a
business school valedictorian. Margins are improving, debt is rising—but so is the top line. And with ₹248 Cr sales in Q1FY26 alone, FY26 might make FY25 look like warm-up cardio.
5. Valuation – Fair Value Range (Do The Math, Hold the Drama)
Method 1: P/E Based
EPS (TTM) = ₹50.45Peer P/E Range = 15x–22x (Industrial Fab peers)→ FV Range = ₹757 – ₹1,110
Method 2: EV/EBITDA Based
FY25 EBITDA ≈ ₹99 CrEV/EBITDA range = 10x–12x→ EV = ₹990 Cr – ₹1,188 CrLess: Net debt = approx ₹258 CrEquity Value = ₹732 Cr – ₹930 CrFV per share = ₹457 – ₹581 (on 16 Cr shares)
Method 3: DCF Based
Assume:
- FY26 PAT = ₹90 Cr
- 5Y CAGR = 25%, Terminal Growth = 4%, Discount Rate = 14%→ DCF FV Range = ₹720 – ₹980
| Valuation Method | FV Range (₹) |
|---|---|
| P/E | 757 – 1,110 |
| EV/EBITDA | 457 – 581 |
| DCF | 720 – 980 |
“This FV range is for educational purposes only and is not investment advice.”
6. What’s Cooking – News, Triggers, Drama
- Order Book: ₹1,350 Cr (🔥)
- New Facility: Capex deployed to scale up pipe & HVAC systems
- Solar & Defence: New revenue verticals being tapped
- Q1FY26 Result:
