Beacon Trusteeship Limited

Sector n/a · NSE

₹117.40−₹0.35 (−0.30%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

The 60-second version of Beacon Trusteeship Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

How does it make money?

Turns over ₹34 Cr a year. Of every ₹100 of sales, about ₹20 reaches shareholders as profit, with ₹36 left at the operating level before interest, tax and depreciation.

EBITDA margin36.0%

Net margin19.8%

What is its competitive advantage?Some evidence

ROCE of 18.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE18.3%

ROE13.1%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +131% while net margin moved -24% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+131%

Margin effect-24%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

• Not enough data to assess valuation.

Quality vs. Valuation

Company Quality

74/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

35/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

P/E (Trailing)

—

P/B

—

EV/EBITDA

17.1x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 40.0% to 36.0% over 3 years.
Return on equity is falling
ROE has dropped from 27.5% to 13.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 37.5% to 18.3% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Margins are compressingFinancial
EBITDA margin is down 3.9 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.3% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 40.0% to 36.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 27.5% to 13.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 24% a year✓ 32.1% CAGR
Latest reported year was 32.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 34%✓ 36.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 15%✓ 18.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 8 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 7 neutral · 0 weak

Market Cap

₹212 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

13.1%

Moderate

Moderate capital efficiency

ROCE

18.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

32.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

26.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹117.4

Gross Margin

78.4%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

19.8%

Good

Strong bottom-line conversion

Current Ratio

2.05

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

84.6 / 84.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

35.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹15 Cr	₹20 Cr	₹26 Cr	₹34 Cr	+32.1%
EBITDA	₹6 Cr	₹8 Cr	₹9 Cr	₹12 Cr	+27.6%
EBITDA Margin	40.0%	39.6%	33.8%	36.0%	—
PAT (Net Profit)	₹4 Cr	₹5 Cr	₹5 Cr	₹7 Cr	+20.7%
EPS	₹2.13	₹2.86	₹3.01	—	—
ROE	27.5%	26.9%	12.0%	13.1%	—
ROCE	37.5%	36.2%	16.4%	18.3%	—
Free Cash Flow	-₹2 Cr	₹4 Cr	-₹17 Cr	₹2 Cr	—

🟢 Revenue has grown at 32.1% a year over 3 years.

🟢 EBITDA has grown at 27.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 40.0% to 36.0% over 3 years (-3.9 pts).

🟢 PAT (Net Profit) has grown at 20.7% a year over 3 years.

🔴 ROE has fallen from 27.5% to 13.1% over 3 years (-14.4 pts).

🔴 ROCE has fallen from 37.5% to 18.3% over 3 years (-19.2 pts).

🟢 Free Cash Flow has turned positive, from -₹2 Cr to ₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹63 Cr

Total Liabilities

₹12 Cr

Total Debt

—

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹7 Cr

Capex

-₹5 Cr

Recent News

6 general

BEACON TRUSTEESHIP LTD Share Price

Upstox, 05 May

Beacon Trusteeship amalgamation hearing set for Aug 12, 2026

scanx.trade, 02 Jul

Compare with

Equitymaster, 22 Sept

Beacon Trusteeship Appoints Anil Grover as Chief Executive Officer

Business Standard, 17 Jan

Beacon Trusteeship (NSEI:BEACON) - Stock Analysis

Simply Wall Street, 05 Jun

BEACON Stock Price and Chart — NSE:BEACON

TradingView, 19 Jun

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
4 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🟢Business QualityStrong14.3/20

🟢Financial HealthStrong17.5/20

🟢GrowthStrong14.7/20

🟡ProfitabilityModerate8.9/15

🟡ValuationFair7.5/15

🟡RiskModerate5/10

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you.

This thesis breaks if

✓Revenue growth stays above 24% a year32.1% CAGR
✓EBITDA margin holds above 34%36.0%
✓Free cash flow remains positive₹2 Cr
✓ROCE stays above 15%18.3%