At a Glance
Tilak Ventures Ltd (TVL), the microcap darling with a cult following, reported Q1 FY26 revenue ₹9.38 crore and PAT ₹2.21 crore. At a share price of ₹3.10, it trades at exactly 1× book value – as if Mr. Market said, “You’re worth just what you own, nothing more.” Profit growth is a jaw-dropping 87% CAGR over 5 years, but before you dance, remember: ROE is only 5.8% and working capital days are a marathon at 1,872 days. Yes, cash is on a slow motion movie here.
Introduction
If you like Bollywood drama, Tilak Ventures is your penny stock equivalent – small, emotional, and filled with plot twists. From losses to profits, from 62% promoter holding to a “still-not-paying-dividend” status, this company has tested investor patience harder than Indian Railways tests punctuality.
With Q1 results, TVL shows profitability, but low return metrics and erratic cash flows make it a speculative toy rather than a solid investment. Still, with almost no debt and rising profits, the story remains spicy for risk takers.
Business Model (WTF Do They Even Do?)
Tilak Ventures is into:
- Trading & Financing: Dealing in equity securities and commodity trading.
- Investment Activities: Long-term investments in equity-related securities.
- Finance Services: Providing finance-related services to clients.
Essentially, they invest, trade, and finance – making money by moving money. Think of it as a financial supermarket, but with just one cash counter.
Financials Overview
Q1 FY26 Snapshot
- Revenue: ₹9.38 crore (+60% YoY)
- PAT: ₹2.21 crore (+27% QoQ)
- EPS: ₹0.05
- OPM: 22.8%
FY25 Recap
- Revenue: ₹21.2 crore
- PAT: ₹6.75 crore
- OPM: 17%
- ROE: 5.8%
Commentary: Profit growth is spectacular on paper, but absolute numbers are tiny. Even a single bad quarter can wipe out the gains.
Valuation – Cheap or a Trap?
- CMP: ₹3.10
- TTM EPS: ₹0.15
- P/E: 20.5
- Book Value: ₹3.10 (P/B 1×)
Fair Value Calculation:
- P/E Method: EPS 0.15 × fair P/E 15 → ₹2.25
- P/B Method: BV ₹3.10 × 1.2 → ₹3.72
- DCF: Not meaningful (cash flow inconsistent).
🎯 Fair Value Range: ₹2.5 – ₹3.5. Stock trades at fair value with no safety cushion.
What’s Cooking – News, Triggers, Drama
- Q1 FY26 Results: Strong revenue jump, profit steady.
- Subsidiary Disposal: Q1 saw asset sale – cash flow impact TBD.
- No Dividend: Despite profits, investors get love, not cash.
- Working Capital Madness: 1,872 days – cash is practically on holiday.
Balance Sheet – Auditor’s Roast
| (₹ Cr) | Mar 23 | Mar 24 | Mar 25 |
|---|---|---|---|
| Assets | 75.8 | 80.3 | 146.4 |
| Liabilities | 0.08 | 0.07 | 0.11 |
| Net Worth | 73.4 | 77.9 | 138.3 |
| Borrowings | 2.38 | 2.38 | 8.0 |
Punchline: Clean balance sheet, almost debt-free. The 6% ROE? Still a disappointment.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 6.65 | 1.61 | 1.71 |
| Investing | -49.3 | -2.7 | -32.2 |
| Financing | 23.6 | -0.07 | 49.0 |
Commentary: Cash flow is inconsistent, with heavy investing activity eating liquidity.
Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE % | 4.7 | 9.4 | 5.8 |
| ROCE % | 4.7 | 9.4 | 7.5 |
| P/E | 18 | 22 | 20.5 |
| PAT Margin % | 32.5 | 45.8 | 17.1 |
| D/E | 0.03 | 0.03 | 0.06 |
Commentary: Margins volatile, returns modest, P/E too high for comfort.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 8.96 | 15.9 | 21.2 |
| EBITDA | 2.9 | 7.3 | 3.7 |
| PAT | 2.4 | 5.4 | 6.7 |
Remark: Profit CAGR high because base was pathetic. Growth story needs consistency.
Peer Comparison
| Company | Revenue (₹Cr) | PAT (₹Cr) | P/E |
|---|---|---|---|
| Tata Inv. Corp | 304 | 312 | 110 |
| TVS Holdings | 47,456 | 1,275 | 18.6 |
| JSW Holdings | 250 | 177 | 119 |
| Tilak Ventures | 24 | 6.7 | 20.5 |
Commentary: TVL is a tiny fish among whales. Valuation premium doesn’t justify scale.
Miscellaneous – Shareholding, Promoters
- Promoter Holding: 61.98%
- Public: 38%
- FIIs & DIIs: negligible.
- No institutional love here, just retail speculators hoping for a miracle.
EduInvesting Verdict™ (500 Words)
Tilak Ventures is a penny stock with a decent turnaround story but plagued by inconsistencies. Yes, the company has shown profit growth of 87% CAGR, but that’s a result of a very low base.
Strengths:
- Debt-free status.
- Profitability improving.
- Clean promoter holding above 60%.
Weaknesses:
- Low ROE/ROCE (below cost of capital).
- No dividend.
- Unstable cash flows and working capital chaos.
Opportunities:
- Trading and financing expansion could scale earnings.
- Microcap rerating if results stay positive.
Threats:
- Thin margins make it vulnerable.
- Regulatory or trading losses can quickly wipe out profits.
- Low liquidity makes it prone to wild price swings.
Conclusion:
Tilak Ventures is a speculative bet, not an investment. At ₹3, it’s trading at book value, offering no margin of safety. Unless the company starts generating sustainable cash flows and ROE above 10%, it will remain stuck as a penny stock with a cult following.
For investors with a high-risk appetite, it’s a lottery ticket. For the rest, there are safer playgrounds.
Written by EduInvesting Team | 01 August 2025
SEO Tags: Tilak Ventures, Penny stock analysis, Q1 FY26 results, microcap finance stock
