One of the penny stocks engaged in the manufacturing and exporting of precision hand tools, including spanners, pliers, and screwdrivers. The stock currently trades 1,764.82 percent below its book value, highlighting strong undervaluation and offering potential value for long-term investors.
Stock price movement
With a market capitalization of Rs. 18.64 crores, the shares of Taparia Tools Limited’s stock surged by 5 percent, reaching an upper circuit of Rs. 12.28 per share on Tuesday, up from its previous closing price of Rs. 11.70 per share. The company has given a return of 96.17 percent and 282.55 percent over the last six months and one year, respectively.
Company Overview
Taparia Tools Limited was established in 1969 and is a leading Indian manufacturer of hand tools, operating from modern facilities in Nashik and Goa. The company specializes in producing a diverse range of tools, including wrenches, screwdrivers, and pliers, while emphasizing quality and innovation.
Financial Ratio
Taparia Tools Limited is currently trading at Rs. 12.28, much lower than its book value of Rs. 229, making the book value 1,764.82 percent higher than its market price. The price-to-book (P/B) ratio is 0.05, showing the stock is undervalued.
Additionally, the stock’s P/E ratio is 0.15, compared to the industry average of 27.2, further indicating that Taparia Tools is priced attractively, potentially presenting a value investment for long-term investors.
Dividend History
Taparia Tools Limited has declared a substantial equity dividend of 450 percent, amounting to Rs. 45 per share for the financial year 2025. This impressive dividend payout results in a remarkably high dividend yield of approximately 376.68 percent.
The below table shows the dividends paid by Taparia Tools Limited in the last three years:
| Type | Ex-Date | Dividend (Rs.) | Dividend (%) |
|---|---|---|---|
| Interim | 13-11-2024 | ₹25.00 | 250% |
| Final | 22-07-2024 | ₹20.00 | 200% |
| Interim | 23-02-2024 | ₹20.00 | 200% |
| Final | 26-06-2023 | ₹77.50 | 775% |
| Interim | 16-03-2023 | ₹77.50 | 775% |
| Final | 21-07-2022 | ₹52.50 | 525% |
| Interim | 24-02-2022 | ₹50.00 | 500% |
Product Portfolio
Taparia Tools specializes in a wide range of hand tools, including adjustable spanners, pliers, screwdrivers, socket accessories, torque wrenches, pipe tools, hammers, clamps, chisels, punches, and non-sparking tools for professional use.
The company serves industries like automotive and manufacturing, maintaining high quality and technology standards from their past partnership with a Swedish company.
Global Presence
Taparia Tools Limited sells its high-quality hand tools to countries like the UK, US, Germany, Sweden, Denmark, and the UAE. This highlights the company’s strong presence in global markets and its focus on providing excellent products.
Financial highlights
Taparia Tools Limited’s revenue has increased from Rs. 209 crore in Q2 FY24 to Rs. 524 crore in Q2 FY25, which has grown by 7.18 percent. The net profit has also grown by 29.17 percent, from Rs. 24 crore in Q2 FY24 to Rs. 31 crore in Q2 FY25.
Taparia Tools Limited’s revenue and net profit have grown at a CAGR of 11.97 percent and 33.03 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE should be 44 percent and 32.8 percent, respectively. Taparia Tools Limited’s EPS is to be Rs. 77.7 and is an almost debt-free company.
Written By – Nikhil Naik
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