Transwarranty Finance Limited (TFL) AI Stock Analysis

• Market Cap: ₹812.86M
• Dividend Yield: N/A
• Average Volume (3M): 2.23K
• Price to Earnings (P/E): 123.7
• Beta (1Y): 1.73
• Revenue Growth: -16.55%
• EPS Growth: -334.08%
• Country: IN
• Employees: 36
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): -0.16
• Shares Outstanding: 53,974,537
• 10 Day Avg. Volume: 2,953
• 30 Day Avg. Volume: 2,226
• PEG Ratio: 0.01
• Price to Book (P/B): 2.35
• Price to Sales (P/S): 4.65
• P/FCF Ratio: -15.27
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹16.00
• Price Target Upside: 6.24% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: ₹16.00 ▲(6.24% Upside)

The overall stock score is primarily driven by poor financial performance, with significant challenges in revenue, profitability, and cash flow. Technical analysis indicates a bearish trend, and valuation metrics are unfavorable due to negative earnings. These factors collectively result in a low stock score, highlighting the need for strategic improvements.

Transwarranty Finance Limited Business Overview & Revenue Model

Company Description

Transwarranty Finance Limited (TFL) is a financial services company specializing in providing warranty and insurance solutions for various sectors, including automotive, consumer electronics, and appliances. The company offers a range of products, including extended warranties, service contracts, and insurance products designed to protect consumers and businesses from unforeseen repair and replacement costs. TFL aims to deliver value through innovative financial products that enhance customer satisfaction and loyalty.

How the Company Makes Money

Transwarranty Finance Limited generates revenue primarily through the sale of warranty and insurance products. The company's key revenue streams include premiums collected from customers purchasing extended warranties and service contracts, as well as fees associated with the administration and management of these products. Additionally, TFL may earn income from partnerships with manufacturers and retailers who offer their warranty services as part of product sales, thereby creating a commission-based revenue model. The company may also benefit from investment income generated from the reserves set aside for claims payouts, contributing to its overall earnings.

Transwarranty Finance Limited Financial Statement Overview

Summary

Transwarranty Finance Limited is facing significant financial challenges across all verticals. The income statement shows declining revenues and profitability, the balance sheet is burdened with high leverage, and cash flows are under pressure. The company needs to address these issues to improve its financial health and stability.

Income Statement

Transwarranty Finance Limited has faced significant challenges in its income statement. The company has experienced negative revenue growth in recent years, with a notable decline of 38% in the latest period. Gross profit margins have been inconsistent, and the net profit margin is deeply negative at -44.64%, indicating substantial losses. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. Overall, the income statement shows a concerning trend of declining revenues and profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.32, suggesting significant leverage, which could pose financial risks. The return on equity is negative, indicating that the company is not generating returns for its shareholders. However, the equity ratio is relatively stable, showing that a reasonable portion of assets is financed by equity. The balance sheet reflects a need for improved financial stability and reduced leverage.

Cash Flow

Cash flow analysis indicates severe challenges, with negative operating and free cash flows. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is zero, highlighting cash flow issues. The free cash flow to net income ratio is slightly above 1, suggesting that cash flow is not supporting net income effectively. Overall, the cash flow statement underscores liquidity concerns and the need for better cash management.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2022	Dec 2021
Income Statement
Total Revenue	157.41M	157.41M	111.47M	127.48M	94.06M	137.79M
Gross Profit	76.53M	76.53M	-3.29M	-19.87M	-20.61M	-9.79M
EBITDA	-31.30M	-15.97M	12.79M	-15.39M	-87.97M	-22.24M
Net Income	-33.53M	-54.08M	5.82M	-22.79M	-89.99M	-31.24M
Balance Sheet
Total Assets	1.00B	1.00B	989.72M	1.03B	1.06B	944.61M
Cash, Cash Equivalents and Short-Term Investments	84.66M	84.66M	14.20M	107.42M	154.82M	74.30M
Total Debt	411.52M	411.52M	385.25M	427.34M	403.07M	432.46M
Total Liabilities	648.17M	648.17M	643.21M	839.87M	727.32M	735.77M
Stockholders Equity	310.92M	310.92M	301.91M	142.13M	292.15M	164.69M
Cash Flow
Free Cash Flow	0.00	-47.95M	-149.69M	157.63M	-123.42M	-96.93M
Operating Cash Flow	0.00	-45.71M	-147.52M	158.65M	-121.97M	-95.97M
Investing Cash Flow	0.00	-2.26M	69.29M	-77.08M	17.42M	-51.74M
Financing Cash Flow	0.00	48.75M	-62.39M	-48.62M	164.68M	171.29M

Transwarranty Finance Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TFL, the sentiment is Negative. The current price of 15.06 is below the 20-day moving average (MA) of 15.51, below the 50-day MA of 16.81, and below the 200-day MA of 17.26, indicating a bearish trend. The MACD of -0.39 indicates Negative momentum. The RSI at 40.38 is Neutral, neither overbought nor oversold. The STOCH value of 18.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TFL.

Transwarranty Finance Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HYBRIDFIN	72 Outperform	₹456.26M	14.12	9.79%	―	3.86%	5.42%
MOTOGENFIN	59 Neutral	₹1.02B	143.18	1.05%	―	7.97%	-51.43%
TCIFINANCE	52 Neutral	₹158.46M	4.31	-4.76%	―	479.93%	―
VIJIFIN	43 Neutral	₹414.68M	29,100.00	0.79%	―	51.61%	―
TFL	41 Neutral	₹812.86M	123.69	―	―	-16.55%	-334.08%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%