Tarmat Ltd. (TARMAT) AI Stock Analysis

Tarmat Ltd.

(NSE:TARMAT)

Select Model

Rating:74Outperform

Price Target:INR 60.00▲(14.26% Upside)

Action:reiterated

Date:08/27/26

The overall score of 74 is driven primarily by materially improved financial strength, including sharp deleveraging, growing equity, and a return to profitable growth with better margins, balanced against a track record of volatile revenues and cash flows that raises execution and cash-conversion risk. Supportive technicals, with the price above all major moving averages and positive momentum, add to the score by confirming current market strength, while a mid-20s P/E without visible dividend support results in a valuation that is acceptable but not a clear bargain.

Positive Factors

Improved profitabilityThe 2026 rebound shows that Tarmat can restore profitability when revenue and operating performance improve. Higher margins provide greater internal funding capacity and a stronger base for future growth, although sustaining this improvement will depend on execution and project economics.

Negative Factors

Negative free cash flowNegative free cash flow means operating cash did not cover investment or working-capital requirements in the latest period. If this pattern persists, Tarmat may have less internally generated capital available for expansion, debt reduction, or shareholder returns.

Tarmat Ltd. (TARMAT) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 1.30B
Dividend Yield: ―
Average Volume (3M): 5,359
Price to Earnings (P/E): 18.8
Beta (1Y): 0.89
Revenue Growth: 22.80%
EPS Growth: 233.50%
Country: India
Employees: 112
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

Tarmat Ltd. Business Overview & Revenue Model

Company Description

Tarmat Limited is a Mumbai-based Indian infrastructure development firm, founded in 1986. Originally known as Roman Tarmat Limited, the company adopted its current name in September 2012. Its primary focus encompasses a wide array of construction end...

Tarmat Ltd. Financial Statement Overview

Summary

Score reflects a strengthened financial profile, with revenue returning to solid double-digit growth, profit recovering from a recent loss to a healthy level, and net margin improving above 5%, supported by a materially de-leveraged balance sheet and growing equity base. This is offset by the history of volatile revenues, swings between profit and loss, uneven returns on equity, and particularly volatile cash generation with several recent years of negative free cash flow, which reduces confidence in the consistency of future cash conversion.

Income Statement

74Positive

Balance Sheet

82Very Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	1.28B	1.17B	1.01B	893.53M	1.44B	1.81B
Gross Profit	163.49M	119.53M	69.02M	134.40M	72.98M	118.50M
EBITDA	94.08M	81.20M	38.38M	24.84M	20.76M	77.13M
Net Income	70.82M	62.42M	18.69M	-11.32M	74.15M	45.77M
Balance Sheet
Total Assets	0	2.61B	2.36B	1.98B	2.13B	2.20B
Cash, Cash Equivalents and Short-Term Investments	214.00M	214.00M	98.27M	57.06M	50.41M	44.42M
Total Debt	0	150.23M	95.38M	104.67M	59.52M	433.60M
Total Liabilities	-1.87B	742.71M	625.90M	684.02M	823.15M	1.26B
Stockholders Equity	1.87B	1.87B	1.73B	1.30B	1.31B	935.75M
Cash Flow
Free Cash Flow	0	-10.38M	-373.13M	-32.48M	878.09K	199.89M
Operating Cash Flow	0	67.75M	-95.96M	-32.01M	94.58M	202.54M
Investing Cash Flow	0	-78.13M	-271.68M	136.00K	-8.45M	179.16M
Financing Cash Flow	0	126.11M	408.83M	38.53M	-80.10M	-209.89M

Tarmat Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price52.51

Price Trends

50DMA56.57Negative

100DMA54.09Negative

200DMA53.89Negative

Market Momentum

MACD-0.86Negative

RSI41.86Neutral

STOCH53.22Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TARMAT, the sentiment is Negative. The current price of 52.51 is below the 20-day moving average (MA) of 54.48, below the 50-day MA of 56.57, and below the 200-day MA of 53.89, indicating a bearish trend. The MACD of -0.86 indicates Negative momentum. The RSI at 41.86 is Neutral, neither overbought nor oversold. The STOCH value of 53.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TARMAT.

Tarmat Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:TARMAT against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:TARMAT	74Outperform	INR 1.36B	18.81	―	―	22.80%	233.50%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:A2ZINFRA	53Neutral	INR 2.43B	63.23	―	―	5.88%	-62.07%
IN:SADBHIN	46Neutral	INR 803.07M	49.80	―	―	9.00%	―
IN:GAYAPROJ	45Neutral	INR 8.79B	0.18	―	―	145.41%	1411.16%
IN:RKEC	43Neutral	INR 466.62M	-0.95	―	―	-70.62%	-400.50%
IN:SADBHAV	42Neutral	INR 1.11B	3.64	―	―	-0.30%	―

* General Sector Average

Performance Comparison

IN:TARMAT and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:TARMAT	Tarmat Ltd.	52.51	0.48	0.92%
IN:A2ZINFRA	A2Z Infra Engineering Limited	13.06	-3.83	-22.68%
IN:GAYAPROJ	Gayatri Projects Limited	19.34	8.21	73.76%
IN:RKEC	RKEC Projects Ltd.	20.42	-46.23	-69.36%
IN:SADBHAV	Sadbhav Engineering Limited	6.50	-4.83	-42.63%
IN:SADBHIN	Sadbhav Infrastructure Project Ltd.	2.45	-1.30	-34.67%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 27, 2026

Tarmat Ltd. AI Stock Analysis