Revenue and Profit Growth
Touchwood Enter. has seen its net sales surge from ₹10.06 crores in March 2021 to ₹68.85 crores by March 2025, reflecting a compound growth trend despite some fluctuations. The total operating income mirrored this growth, rising substantially over the period. Operating profit before depreciation, interest, and tax (PBDIT) excluding other income increased from ₹2.04 crores in March 2021 to ₹7.55 crores in March 2025, indicating improved operational efficiency. The company’s operating profit margin, however, showed some variability, peaking at over 20% in 2021 before moderating to around 11% in 2025.
Profit before tax rose steadily from ₹1.42 crores in March 2021 to ₹7.01 crores in March 2025, while profit after tax (PAT) increased from ₹0.98 crores to ₹5.17 crores over the same period. This growth is reflected in the earnings per share (EPS), which climbed from ₹0.96 to ₹4.68, signalling enhanced shareholder value. Despite the rising profits, the PAT margin experienced a slight decline, settling at 7.51% in 2025 compared to 9.74% in 2021, suggesting increased costs or competitive pressures impacting net profitability.
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Cost Structure and Expenses
The company’s expenditure profile reveals that other expenses have risen significantly, from ₹5.73 crores in 2021 to ₹54.88 crores in 2025, which is a major component of total expenditure. Employee costs have remained relatively stable, increasing modestly from ₹2.29 crores to ₹3.42 crores. Notably, the purchase of finished goods appeared only in the latest year at ₹3.00 crores, indicating possible changes in procurement or inventory strategy. The absence of raw material costs and manufacturing expenses suggests a business model focused on services or trading rather than manufacturing.
Balance Sheet Strength and Capitalisation
Touchwood Enter.’s shareholder funds have grown robustly from ₹13.51 crores in 2021 to ₹40.04 crores in 2025, supported by rising reserves which increased from ₹3.33 crores to ₹28.96 crores. The equity capital remained fairly constant, reflecting stable share capital structure. Total liabilities have increased in line with assets, with total assets rising from ₹17.68 crores to ₹49.16 crores, indicating expansion in the company’s asset base.
Long-term borrowings have remained low and manageable, peaking at ₹1.32 crores in 2024 before easing to ₹1.04 crores in 2025. The company’s debt levels are modest, with total debt at ₹1.36 crores in 2025, supporting a conservative leverage profile. Book value per share has improved significantly from ₹13.27 in 2021 to ₹36.13 in 2025, reflecting enhanced net asset value per share.
Cash Flow and Liquidity
Cash flow trends show some volatility, with net cash inflow peaking at ₹10 crores in 2023 but turning negative to ₹-4 crores in 2025. Operating cash flow has fluctuated, with a negative outflow of ₹2 crores in 2024 and zero in 2025, indicating potential working capital pressures. The company’s cash and bank balances remain healthy, rising from ₹4.42 crores in 2021 to ₹22.35 crores in 2025, providing a solid liquidity cushion. Changes in working capital have been a significant factor, with negative adjustments in recent years impacting cash flow after working capital changes.
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Summary and Outlook
Overall, Touchwood Enter. has exhibited strong growth in revenue and profitability over the last five years, supported by a steadily strengthening balance sheet and improving book value per share. While margins have moderated somewhat, the company’s ability to increase net sales and profits consistently is a positive indicator of operational progress. The manageable debt levels and healthy cash reserves provide financial stability, although recent cash flow fluctuations suggest the need for careful working capital management going forward.
Investors should note the company’s evolving cost structure and the impact of rising other expenses on profitability. Continued focus on operational efficiency and cash flow optimisation will be key to sustaining growth momentum. The historical performance data underscores Touchwood Enter.’s potential as a growing enterprise within its sector, with scope for further value creation if current trends persist.
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