Many investors, especially beginners, tend to buy shares of companies just because they have a good story, even if those companies are losing money. But investing in loss-making companies can be risky since they haven’t proven their ability to make profits yet. In contrast, Tilaknagar Industries stands out because it has both strong revenues and profits, which makes it an interesting company to watch.
Over the last year, Tilaknagar Industries’ earnings per share (EPS) jumped dramatically from ₹7.93 to ₹14.34, by an impressive 81% growth. While it’s important not to rely solely on EPS, this kind of growth suggests the company is performing well.
Tilaknagar Industries has also grown its revenue and improved its operating efficiency. Its earnings before interest and tax (EBIT) margin increased by 6.1 percentage points to 19%, signaling better profitability. Both rising revenue and improved margins are positive signs for the company’s future growth.
A key factor that makes Tilaknagar Industries appealing is the high level of insider ownership. Insiders, like company executives and directors, hold about 35% of the shares. This large ownership means insiders’ financial interests are closely aligned with those of other shareholders.
When insiders own a significant stake, it often indicates confidence in the company’s future and suggests they are motivated to run the business in shareholders’ best interests.
While the company’s recent growth is encouraging, it’s important to be cautious and check for potential risks. For example, investors should review Tilaknagar Industries’ balance sheet to ensure the company’s finances are healthy. Also, although insiders hold a large share, there hasn’t been much recent buying activity from them, which some investors like to see as a strong vote of confidence.
Tilaknagar Industries has shown strong profit growth and has solid backing from insiders, making it a company worth watching closely. The rapid growth in earnings could indicate the company is at an important turning point, potentially offering good opportunities for investors. However, it’s wise to keep an eye on financial health and insider activity before making investment decisions.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in securities are subject to market risks. Read all related documents carefully before investing.
Published on: Sep 12, 2025, 12:42 PM IST
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