RATING

RECOMMENDATION

Buy

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RATING

RECOMMENDATION

Buy

Business Type

Traditional Business

RATING

RECOMMENDATION

Buy

Business Type

Traditional Business

  • Taparia Tools Growth

Taparia Tools Revenue Growth

Growth in %

  • 24.50%

    1 Year

  • 12.29%

    3 Year

  • 11.82%

    5 Year

Total income has increased by 24.5% in FY2022. The rising practice of DIY for interior design and home furnishing among consumers from developed and developing countries has positively influenced the market. The professional market contributes the largest share of power and hand tools. Professional market comprises of individuals who work in industries such as construction, manufacturing, and other.  An increase in technical jobs and employment has also boosted the revenue, as professionals use high-end tools and are willing to pay more for such products.

Taparia Tools Net Profit Growth(PAT)

Growth in %

  • 34.65%

    1 Year

  • 40.42%

    3 Year

  • 42.88%

    5 Year

The net profit of the company registered a growth of 34.65% in FY22 as against FY21. The main reason for the same was followed by an increase in the company's revenue due to an increase in demand for its products. On the other hand, the expenses of the company increased by 32%. Strong commitment and on-the-ground efforts of all the employees has led to the growth of the organization. 

Taparia Tools EPS Growth

Growth in %

  • 34.66%

    1 Year

  • 40.42%

    3 Year

  • 42.93%

    5 Year

The company reported EPS growth from Rs. 159.22 in FY21 to Rs. 214.41 in FY22, which is 34.66% year-on-year (y-o-y) growth on account of an increase in net profit after tax .

  • Taparia Tools Book Value Growth

Growth in %

  • 21.11%

    1 Year

  • 23.73%

    3 Year

  • 20.90%

    5 Year

In FY22, the company's book value grew by 21.11% because of an increase in retained earnings of the company.

Taparia Tools EBITDA Growth

Growth in %

  • 34.61%

    1 Year

  • 34.03%

    3 Year

  • 36.24%

    5 Year

The company's EBITDA in FY22 was increased by 34.61 over FY21. The reason for such growth is increase in the revenue of the company and thus profit of the company. It must be noted that revenue per unit of expenses of the company has increased by 1.16% in FY22 from FY21.

Taparia Tools Operating Profit Growth

Growth in %

  • 35.37%

    1 Year

  • 33.93%

    3 Year

  • 36.30%

    5 Year

Taparia Tools Asset Growth

Growth in %

  • 23.97%

    1 Year

  • 17.65%

    3 Year

  • 21.35%

    5 Year

Assets of the company has increased by 23.97% in FY22 over FY21. Increase in inventory (stock in trade) and trade receivables are the main drivers of this growth. Increase in business operations led to an increase in the current assets of the firm.

Taparia Tools Cash Flow from Operations

Growth in %

  • 56.16%

    1 Year

  • NA

    3 Year

  • 10.04%

    5 Year

Cashflow from operations has increased by 56.16% in FY22 from previous year. The main reason for the same is increase in the net profit of the company. Also increase in the trade payables by Rs. 32.47 Cr. due to increase in company's operations led to an increase in the cash flow from operations.

  • Taparia Tools Solvency Ratios

Solvency ratios of Taparia limited are very strong which ensures long term growth of the company.

Taparia Tools D/E Ratio

The debt to equity ratio came down approximately to 0 in FY22 as the company's long term debt was reduced by 49% coming down to just 36 Lakhs, whereas the equity of the company increased by 14% in FY22. The company has a good solvency position.

Taparia Tools Current Ratio

Current assets accounted for 92.88% of the total assets of the company, which is mostly due to the high inventory levels of the company. Current assets increased by 27% in FY22 over FY21. Current liabilities, on the other hand, increased by 74%, on account of an increase in the account payables. Overall, taking into consideration of other current assets and other current liabilities, current liabilities increased more than current assets, leading to a decrease in the current ratio of the company. 

Taparia Tools Quick Ratio

Inventories constitute 59.63% of the overall current assets, which plays a significant role in the company. Despite an increase in the current assets of the company, the quick ratio of the company declined because the current liabilities of the company increased at a faster pace.

Taparia Tools Interest Coverage Ratio

Interest coverage ratio of the company increased by 139.3% in FY22, due to increase in the operating income of the company. Also, the company has reduced its long term debt significantly and thus the interest payments which overall led to an increase in the interest coverage ratio of the company. Interest coverage ratio is high which shows the company is able to easily cover its finance costs without any difficulty.

  • Taparia Tools Operating Efficiency

Because of the increase in its revenue, the company was able to strengthen its operating efficiency. Operational efficiency of the company is on the improving side in  FY22 as the economy is recovering. The management is able to improve its revenue from operations in 2022 and also operating efficiency of the company has increased significantly as compared to previous years. The company has dedicated R&D department which introduces new products such as new technology in Broaching process of Pliers. Instead of traditional hydraulic presses used for broaching, company has implemented servo actuators which are highly energy efficient and noiseless process.  The operating ratios of the company have seen a slight improvement as compared to previous year.

Taparia Tools Operating Profit EBIT Margin(OPM)

Taparia Tools Profit Before Tax Margin (PBT Margin)


Taparia Tools Profit After Tax Margin (PAT Margin)


  • Taparia Tools Profitablity Ratio

ROE, ROCE & ROA has increased from the previous years which shows that management is efficient and is increasing its profits YoY. This has happened because sales of the company have increased due to increase in demand as the economy is recovering. 

Taparia Tools Return on Equity(RoE)

Due to the firm's increasing net profit in FY22, the ROE of the company increased by 11.19% y-o-y. As per DU Point analysis, the company's net profit margin stood at 9.7% y-o-y in FY22, which is a major factor in the increase. The equity multiplier of the company increased because of the increase in overall debt (trade payables) in the company. This all led to an increase in the return on equity (ROE) of the company.

Taparia Tools Return on Capital Employed(RoCE)

Taparia Tools Return to Assets (RoA)

In FY22, the net profit of the company increased by 35%, whereas the assets increased by 24% due to increase in company's operations. This has overall led to a 7.9% increase in the return of assets of the company.

  • Taparia Tools Valuation Ratios

Taparia Tools Dividend Yield

Taparia Tools Earning Yield