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Tarmat Limited (TARMAT) Fair Value & Analysis

Industrials · IN · Market cap ₹1.3B (≈ $13.3M) · ISIN INE924H01018

What is Tarmat Limited really worth?

TL Tarmat Limited TARMAT · BSE
Price₹61.36
Fair Value₹39.57
Upside−35.5%
Quality42/100

Below-average quality, and trading another 55% above our fair value of ₹39.57.

As of Aug 27, 2026, the fair value of Tarmat Limited is ₹39.57 per share against a price of ₹61.36, so the fair value sits 36% below the price. A model estimate blended from multiple valuation models, recalculated regularly.

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Risks

!Weak Growth (revenue 5y −9.7 %/yr)
!Thin margins · 5.5% net margin
!Low debt · negative free cash flow
!Narrow moat 28/100
!Evidence only low, so the estimate is less certain
Evidence: Low Range ₹27.70 – ₹51.44

Fair value as of: Aug 27, 2026

From 12 valuation models · updated 10 days ago

Share price +21.6% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (₹51.44). The favourable scenario is already priced in.
  • Weak quality (42/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • A fairly wide model range (₹27.70 to ₹51.44) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

₹147.76 ₹42.15 Fair Value ₹39.57 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 27, 2026.

How to read this chart

60‑month range ₹42.15 – ₹147.76 · fair‑value band ₹27.70 – ₹51.44 · the ₹61.36 price screens above the ₹39.57 fair value. Dashed = 300-day average. As of Aug 27, 2026.

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Analysis

Tarmat Limited (TARMAT) currently trades at ₹61.36, while our model-based Fair Value estimate is ₹39.57, implying the stock looks roughly 55.1% overvalued today. The Quality Score stands at 42/100 (below-average quality), in the Industrials sector. Bull case: the Asset-Based group reads highest at a median of ₹49.91 per share, and 0 of the 12 models we run sit above the ₹61.36 price. Bear case: the Earnings-Based group reads lowest at ₹20.70, and 12 of the 12 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, Tarmat Limited generated revenue of ₹1.3B at a net margin of 5.5%. Revenue grew 43.6% year over year. It earns a return on equity of 3.5%. Net debt stands at ₹41.5M. Fundamentals as of Aug 27, 2026

Our scenario range runs from ₹27.70 (bear case) to ₹51.44 (bull case); at ₹61.36, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 17% below its 52-week high and 32% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at −46% fair-value upside, at −36%, TARMAT screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹1.09 per share, which is 2.6 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
EPV best evidence ₹20.49 ₹22.69 ₹24.53 74
ROIC Compounder ₹20.49 ₹22.69 ₹24.53 72
Residual Income ₹51.17 ₹48.78 ₹38.82 71
All 12 models by family
Earnings-Based
Graham-Dodd ₹16.94 ₹20.70 ₹23.29 67
EPV best evidence ₹20.49 ₹22.69 ₹24.53 74
Multiples
P/E Multiple ₹39.23 ₹52.30 ₹65.38 63
P/S Multiple ₹31.75 ₹42.34 ₹52.92 58
P/B Multiple ₹31.75 ₹42.34 ₹52.92 55
EV/EBIT ₹32.95 ₹42.49 ₹52.02 66
EV/EBITDA ₹31.10 ₹40.02 ₹48.95 67
EV/Revenue ₹24.76 ₹33.51 ₹42.26 54
Asset-Based
NCAV (Graham) ₹37.24 ₹49.91 ₹74.49 54
Economic Profit
Residual Income ₹51.17 ₹48.78 ₹38.82 71
ROIC Compounder ₹20.49 ₹22.69 ₹24.53 72
Growth Earnings
Growth-Adj P/E ₹27.70 ₹39.57 ₹51.44 67

Widest divergence: Asset-Based (₹49.91) versus Earnings-Based (₹20.70). Highest evidence: EPV (74).

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Key figures & financial health

P/E ratio 24.4
P/S ratio 1.30 P/E × margin
EPS (TTM) ₹2.51 price ÷ EPS = P/E 24.4
Net margin 5.3% FY2026
Return on equity 3.5% TTM
Return on assets (EBIT) 1.3% avg 5y
More key figures
Profitability
Operating margin 6.0% TTM
Growth
Revenue (TTM) ₹1.3B TTM
Revenue growth (YoY) +43.6% 3y avg −6.5%
EPS growth (YoY) +107%
Balance sheet & cash flow
Free cash flow −₹2.9M FY2026
Net debt ₹41.5M FY2025

Figures from reported company fundamentals · as of Aug 27, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 42/100

Of which business quality 43 · Market factors (momentum, volatility) 50

Profitability 26
Margins and returns on capital today
Quality Growth 68
Are margins and returns improving?
Cashflow 24
Earnings quality: real cash, not paper profit
Fin. Strength 66
Balance sheet, leverage, solvency risk
Investment 59
Disciplined investing over empire-building
Low Volatility 56
Calm price path (market factor)
Momentum 43
Price trend over the last 3–12 months (market factor)
52W Momentum 54
Distance to the 52-week high (market factor)
Net Issuance 26
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Tarmat Limited operates as an infrastructure company in India. The company undertakes various construction works, including airport runways, highways, and railways; and develops infrastructure projects, such as ports, industrial area developments, refineries, etc., as well as parking bays and taxi track related work.

Full company description

Tarmat Limited operates as an infrastructure company in India. The company undertakes various construction works, including airport runways, highways, and railways; and develops infrastructure projects, such as ports, industrial area developments, refineries, etc., as well as parking bays and taxi track related work. It also develops real estate properties; and provides engineering, procurement, and construction services for infrastructure projects. The company was formerly known as Roman Tarmat Limited and changed its name to Tarmat Limited in September 2012. Tarmat Limited was incorporated in 1986 and is based in Mumbai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Tarmat Limited reported revenue of ₹1.2B in FY2026 versus ₹1.8B in FY2022, a compound −10.3%/yr. Reported net income was ₹62.4M in FY2026, compounding +8.1%/yr from FY2022.

Growth Quality 20/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
₹1.2B
Latest YoY
+15.9%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−6.5%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−9.7%
Avg. revenue growth/yr (7Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−1.6%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
−8.4% · in INR
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share−8.4%
Dividend yield0.0%
Operating margin (EBIT) Operating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.2.9% (2021) → 4.8% (2026) · rising
Worst earnings drop115% (2024) (loss year, drop beyond 100%) · in INR
⚠ Revenue per share shrinking 22.0%/yr over ~5Y (margins eroding too) Structural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
Revenue −10.3%/yr
FY22 ₹1.8B
FY23 ₹1.4B
FY24 ₹894M
FY25 ₹1.0B
FY26 ₹1.2B
Net income +8.1%/yr
FY22 ₹45.8M
FY23 ₹74.2M
FY24 −₹11.3M
FY25 ₹18.7M
FY26 ₹62.4M

TARMAT screens 55% overvalued. Compare with Quanta Services, Inc →

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Cite: Fair Value Calculator (2026). "Tarmat Limited Fair Value". https://www.fairvalue-calculator.com/stock/TARMAT.BSE

Peer Group

Engineering & Construction · 817 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 42 · Below median
Fair Value upside −31% · Below median
Return on equity (TTM) 3% · Below median
Return on assets 1% · Below median
Net margin (TTM) 6% · Above median
Operating margin (TTM) 6% · Above median
Revenue growth 44% · Top 25%
Debt / equity 0.06× · Lower than median

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/E (TTM) 24.4× · Pricier than median
P/B 0.67× · Cheaper than median
P/S (TTM) 0.98× · Pricier than median
EV/EBITDA 14.0× · Pricier than median

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Aug 27, 2026).

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Quanta Services, Inc PWR $620.06 $143.92 −77%
Vinci SA DG €113.95 €185.62 +63%
Comfort Systems USA, Inc FIX $1,610 $519.97 −68%
Larsen & Toubro Limited LT ₹4,072 ₹2,196 −46%
Ferrovial N.V FER €57.28 €19.17 −67%
HOCHTIEF Aktiengesellschaft HOT €426.00 €203.87 −52%
Samsung C&T Corporation 028260 373,000 KRW 261,411 KRW −30%
EMCOR Group EME $754.16 $549.47 −27%
MasTec, Inc MTZ $241.00 $100.00 −59%
Bouygues SA EN €46.65 €65.67 +41%

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Frequently asked questions

Is Tarmat Limited (TARMAT) overvalued or undervalued?
As of Aug 27, 2026, our model estimates a fair value of ₹39.57 versus a price of ₹61.36, about −36% upside (overvalued).
What is the fair value of TARMAT?
Our model-based fair value for Tarmat Limited is ₹39.57 (as of Aug 27, 2026), built from audited fundamentals. The current price: ₹61.36.
What is the quality score of TARMAT?
Tarmat Limited has a Quality Score of 42/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Tarmat Limited (TARMAT)?
Our model-based price target is the fair value of ₹39.57 (as of Aug 27, 2026) from 12 valuation models. Cautious scenario ₹27.70, optimistic scenario ₹51.44. It is a calculation from audited fundamentals, not an analyst target.
What is the Tarmat Limited stock forecast for 2026?
Our models put fair value at ₹39.57, about −36% upside versus a price of ₹61.36 (overvalued). Cautious scenario ₹27.70, optimistic scenario ₹51.44. The calculation is refreshed regularly with new filings.
What is the revenue of Tarmat Limited (TARMAT)?
Tarmat Limited reported trailing-twelve-month revenue of about ₹1.3B (latest available figure, as of Aug 27, 2026).
What is the net profit margin of TARMAT?
The net profit margin of Tarmat Limited is about 5.5%, meaning it keeps roughly 5.5% of revenue as net income. Based on the latest reported figures.
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