Altman Z″
Needs current assets and current liabilities.
TMCV · Auto & Truck Manufacturers · INE1TAE01010
Analyst mean 1.80 · 5 analysts · 0% bullishA plain-language read of the business, how it actually earns, where the edge is, and the economics of every reported segment — taken from the annual report and investor presentation, not a one-line industry label.
Numbered markers are corporate actions and, once the filings are read, capital and governance events. Prices are split-adjusted so the series is continuous.
The three to six things that actually matter about this company, each with the exact filing and note it came from — never a fact without the context that makes it meaningful.
What the numbers mean when read together — computed from the filings, not a score.
Over the last year profit declined 8.8% even as revenue grew 15.4% — margins are compressing, and any premium being paid rests on a year that moved backwards on the bottom line.
Why this reading: Flagged because the pattern is clear, material, and not explained by the visible numbers — the kind of thing worth understanding before anything else.
Trailing revenue ₹87,197 cr (up 15.4%) but trailing profit ₹4,187 cr (down 8.8%). Rising sales with falling profit points to cost inflation not passed through, mix shift to lower-margin lines, or one-off gains in the base year.
Return on equity looks strong at 92.1%, but it rests on an equity multiplier of 4.11x — the balance sheet is doing the work, not the margins (6.1%). Strip the leverage and the underlying return is ordinary.
Why this reading: Noted with caution — worth watching, but not yet conclusive on its own. Business has ups and downs; one soft reading is not a verdict.
ROE 92.1% = net margin 6.1% × asset turnover 3.67x × equity multiplier 4.11x. A high equity multiplier means most of the asset base is funded by liabilities rather than equity; the same leverage that lifts ROE in good years amplifies the downside when earnings turn.
Operating cash is 494% of trailing profit — the earnings are converting to real cash, not just accruals.
Why this reading: A positive signal: cash conversion at or above ~0.9 means reported profit is showing up as actual cash.
Operating cash ₹14,981 cr against trailing net profit ₹3,030 cr. Consistent conversion near or above 1.0 is a hallmark of genuine earnings.
Every score below is calculated here from the reported numbers — none of it is asserted. Open the notebook at the foot of the section to see each formula with this company's figures in it.
Needs current assets and current liabilities.
Piotroski F-Score — fundamental momentum — Joseph Piotroski, University of Chicago, 2000, in a study of whether accounting signals could improve returns among cheap stocks.
Nine yes-or-no tests across profitability, leverage and operating efficiency. Each pass scores one. It asks a narrow question: is this business getting better or worse on its own terms, year over year?
How to read it7 or more suggests improving fundamentals; 3 or fewer suggests deterioration. It measures direction, not quality — a weak company improving can score higher than a strong one holding steady.
Where it failsA single year of comparison, so one unusual year distorts it. Says nothing about valuation, competitive position or management. Piotroski designed it to rank already-cheap stocks, not to judge a company in isolation.
Needs trade receivables, revenue, current assets, depreciation, other expenses, net profit.
DuPont decomposition — Devised inside the DuPont Corporation in the 1920s and still the standard way to read a return on equity.
Splits return on equity into its three sources, so the same headline number can be traced to very different businesses.
How to read itA 20% ROE built on margin and turnover is a different proposition from a 20% ROE built on 3× leverage. The first survives a downturn; the second amplifies it.
Where it failsA single year. Negative equity makes it meaningless. Leverage is structural for lenders, so the third term carries no signal there.
(net profit − operating cash flow) ÷ average total assets
(₹3,030 − ₹14,981) cr ÷ average assets
-24.1%
Negative means cash exceeded profit — the healthier reading. Positive above ~10% is where accruals start to dominate earnings.net margin × asset turnover × leverage
3.6% × 1.60 × 4.11
23.8%
Splits ROE into whether returns come from operations or from borrowing.EBIT ÷ finance cost
₹5,537 cr ÷ ₹874 cr
6.34×
How many times operating profit covers the interest bill.borrowings ÷ net worth
₹5,615 cr ÷ ₹12,734 cr
0.44×
Read against the sector — infrastructure carries more than software.Needs more balance-sheet detail (only 2 of 6 flags testable).
NOPAT over equity plus debt less cash, at a notional 25% tax. Incremental ROIC is the return on money put in since then — the number that decides whether growth creates value or consumes it.
Return on invested capital, and incremental ROIC — Standard in corporate finance; the incremental form was popularised by Michael Mauboussin as the test of whether growth creates value.
ROIC measures what the business earns on all the capital it employs — equity plus debt, less cash. Incremental ROIC asks a sharper question: what has it earned on the money put in since a chosen year?
How to read itROIC comfortably above the cost of capital — call it 11–13% in India — means growth compounds. Below it, growth consumes. Incremental below headline means recent investment is earning less than the legacy business.
Where it failsDistorted in the year of a large acquisition. Understated for companies mid-build, where capital is deployed but capacity has not yet been commissioned — an incubator will look poor until it does not.
Read downward. Cash can cover EBITDA and still not survive capex — the third rung is where a capital-hungry business shows itself.
The earnings quality ladder — Not a named model — the standard sequence an analyst walks when testing whether reported profit is real.
Three ratios read in order, each stricter than the last.
How to read itRead downward. Each rung failing where the one above passed tells you exactly where the cash is going.
Where it failsA single year of heavy capex depresses the third rung legitimately. Judge it across a cycle.
The growth rate that makes today's market value equal the discounted cash flows, at a 11.5% discount rate and 4.0% terminal growth. Not a forecast — the arithmetic of what is already in the price. Compare it with what the business has actually delivered.
Reverse DCF — the growth already in the price — A standard inversion of discounted cash flow, used to avoid the forecasting problem entirely.
Instead of forecasting cash flows and deriving a value, it takes today's market value as given and solves for the growth rate that would justify it. The output is not a view — it is the arithmetic of what the market is currently assuming.
How to read itCompare it with what the business has actually delivered. A price implying 30% a year against a decade of 15% is a demanding assumption; the reverse is a modest one.
Where it failsUseless when free cash flow is negative or unusually depressed, which is common mid-capex. Highly sensitive to the discount rate — a point either way moves the answer materially.
Against a policy rate near 6%, most sound Indian corporates borrow between 7% and 10%.
Cost of debt — Interest expense over average borrowings — the effective rate the company actually pays.
What the lenders charge, which is a market verdict on credit quality that no rating agency delay affects.
How to read itAgainst a policy rate near 6%, most sound Indian corporates borrow between 7% and 10%. Read the direction over years as much as the level.
Where it failsUnderstated where a large share of interest is capitalised into projects under construction. Not meaningful for lenders, where interest is cost of goods.
Each framework below is a set of stated, mechanical criteria from published work, run against this company's own filed numbers. Passing or failing a screen is not a verdict — different frameworks disagree by design, and that disagreement is itself informative.
Benjamin Graham's stated criteria for a defensive stock, applied to the filed numbers. A company failing several is not disqualified — Graham designed these to be deliberately strict.
Two ratios only: what the business earns on its capital, and what you pay for those earnings. Designed to be ranked across a universe rather than read in isolation.
The fundamental half of William O'Neil's framework. The market and leadership components are judgement calls and are not scored here.
The characteristics long-term holders commonly look for: cash-backed earnings, high returns on capital, and debt that never forces a decision.
Set your own assumptions and watch the numbers move. A scenario calculator — the outputs are the arithmetic of your inputs.
One canonical set of figures — the same numbers used everywhere else on this page and on the screener.
How the register has moved over recent quarters — the direction matters more than the level.
Promoter held steady from 42.56% to 42.56% across these quarters.
FII rose from 17.82% to 18.58% across these quarters.
MF rose from 9.18% to 11.28% across these quarters.
Other trimmed from 30.44% to 27.58% across these quarters.
Where cash gets stuck. A rising inventory or debtor line against flat sales is the earliest sign of trouble in the numbers.
| Measure | FY2025 | FY2026 |
|---|---|---|
| Debtor days
How long customers take to pay | 19 | 12 |
| Inventory days
How long stock sits before it sells | 43 | 35 |
| Payable days
How long the company takes to pay suppliers | 134 | 101 |
| Cash conversion cycle
Debtor + inventory − payable days | -72 | -54 |
| Working capital days | -44 | -89 |
| ROCE %
Return on capital employed | — | 36.0% |
The shape of the business over time (annual) — read the direction, not the single print.
| Metric | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | Mar 2025 10m |
|---|---|---|---|---|---|---|---|---|
| Revenue | 18,819 | 21,863 | 17,324 | 18,585 | 21,847 | 26,098 | 20,667 | 58,217 |
| Expenses | 16,786 | 19,432 | 15,248 | 16,553 | 19,260 | 22,771 | 17,395 | 52,045 |
| Other Income | 407 | 72 | 332 | -1,865 | -981 | -28 | 341 | 685 |
| Depreciation | 557 | 592 | 480 | 472 | 483 | 510 | 508 | 1,690 |
| Profit before tax | 1,531 | 1,592 | 1,674 | -561 | 925 | 2,623 | 2,970 | 4,088 |
| Net Profit | 1,355 | 1,340 | 1,397 | -867 | 705 | 1,793 | 2,556 | 3,195 |
| EPS | — | — | — | — | 1.91 | 4.87 | 6.95 | — |
| Item | FY2025 | FY2026 |
|---|---|---|
| Equity Capital | 0 | 736 |
| Reserves | 10,533 | 11,998 |
| Borrowings | 9,925 | 5,615 |
| Fixed Assets | 13,664 | 13,962 |
| CWIP | 1,875 | 2,026 |
| Investments | 5,282 | 13,283 |
| Total Assets | 46,851 | 52,309 |
| Line | FY2025 | FY2026 |
|---|---|---|
| Cash from operations | 8,547 | 14,981 |
| Cash from investing | 456 | -3,892 |
| Cash from financing | -7,970 | -5,223 |
| Free cash flow | 7,005 | 12,878 |
| Net change in cash | 1,033 | 5,866 |
Cash from operations is the number profit has to answer to. Free cash flow is what remains after the business pays for its own growth.
The part no one reads: the auditor's opinion, the contingent liabilities buried in the notes, the covenants, and the claims in the deck placed beside the figures that test them.
Where analysts pressed management on the earnings call, and exactly how management answered — the questions that were hardest to answer are usually the ones that matter.
The same read, applied to the companies this one competes with.