The Investment Trust of India Limited

Financial Services — Capital Markets · NSE

₹90.00+₹0.23 (+0.26%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

The Investment Trust of India Limited, together with its subsidiaries, provides investment banking and corporate finance activities in India.

IndustryCapital Markets

SectorFinancial Services

Employees19

Annual revenue₹272 Cr

How does it make money?

Turns over ₹272 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹29 left at the operating level before interest, tax and depreciation. Each of its 19 employees supports ₹14.31 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹14.31 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC LIFE INS CO LTD, SBI LIFE INSURANCE CO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE13.7%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -7% while net margin moved +181% 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-7%

Margin effect+181%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.15 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

68/ 100

Good

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

Valuation

88/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

14.1x

3Y Median

38.1x

40 monthly readings · mean 37.4x · range 11.2x–81.7x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 63% below its 3y median of 38.1x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 76% below the peer median of 58.4x.

vs. its own history

Cheap

38.1x median over 40 months · -63%

vs. sector peers

Cheap

58.4x median of 3 peers · -76%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.2x

PEG

0.37

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 16.6% to 29.4% over 3 years.
Return on capital is rising
ROCE has improved from 4.7% to 10.5%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Receivables growing faster than sales
Receivables are up 189% against revenue growth of -7% — customers are taking longer to pay.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 16.6% to 29.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 63% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 76% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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

1EBITDA margin holds above 27%✓ 29.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 4.1%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Interest cover stays above 3x✗ 2.4x
How much operating profit can fall before interest stops being comfortably covered.
4Valuation vs its own median of 38.1x✓ 14.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 3 neutral · 4 weak

Market Cap

₹470 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.1x

Cheap

Cheap against the generic band

P/B Ratio

0.64x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹6.38

Profitable

Profitable on a per-share basis

ROE

4.1%

Weak

Weak capital efficiency

ROCE

10.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

7.61x

High

High leverage

Revenue Growth (YoY)

-6.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

35.4%

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

-₹184 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

14.2%

Average

Average margins

Net Margin

12.8%

Good

Strong bottom-line conversion

Current Ratio

2.34

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.15

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

91.6 / 94.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

37.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹292 Cr	₹273 Cr	₹338 Cr	₹272 Cr	-2.4%
EBITDA	₹48 Cr	₹75 Cr	₹127 Cr	₹80 Cr	+18.2%
EBITDA Margin	16.6%	27.3%	37.4%	29.4%	—
PAT (Net Profit)	₹12 Cr	₹19 Cr	₹43 Cr	₹30 Cr	+37.8%
EPS	₹2.2	₹3.56	₹8.14	₹5.76	+37.8%
ROE	1.8%	2.8%	6.0%	4.1%	—
ROCE	4.7%	7.6%	13.1%	10.5%	—
Total Debt	₹200 Cr	₹378 Cr	₹378 Cr	₹56 Cr	-34.7%
Free Cash Flow	-₹108 Cr	-₹216 Cr	₹119 Cr	-₹184 Cr	—

🔴 Revenue has shrunk at 2.4% a year over 3 years.

🟢 EBITDA has grown at 18.2% a year over 3 years.

🟢 EBITDA Margin has risen from 16.6% to 29.4% over 3 years (+12.8 pts).

🟢 PAT (Net Profit) has grown at 37.8% a year over 3 years.

🟢 EPS has grown at 37.8% a year over 3 years.

🟢 ROE has risen from 1.8% to 4.1% over 3 years (+2.3 pts).

🟢 ROCE has risen from 4.7% to 10.5% over 3 years (+5.8 pts).

🟢 Total Debt has shrunk at 34.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹998 Cr

Total Liabilities

₹263 Cr

Cash & Equivalents

₹26 Cr

Operating Cash Flow

-₹183 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

88.3%

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC LIFE INS CO LTD	58.4x	11.3%
SBI LIFE INSURANCE CO LTD	63.9x	13.7%

Recent News

1 mixed5 general

Raajmarg Infra Investment Trust Share Price Live Today

CNBC TV18, 16 Oct

The Investment Trust of India Share: Bull Case vs Bear Case for 2026

Univest, 25 Sept

The Investment Trust of India Ltd Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 03 Sept

Investment Trust of India discloses voting results for 35th AGM

scanx.trade, 28 SeptResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

The Investment Trust of India Ltd Peer Comparison – Compare with Others

Value Research, 02 Sept

JPMorgan Indian Investment Trust - Half Year Report June 17, 2026

James Sharp & Co., 17 Jun

Watch Items

Revenue growth is negative (-6.2%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Valuation

MiddlingGrowth · Profitability

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

2 of 4 tripwires tripped — Return on equity stays above 8%; Interest cover stays above 3x · see Key things to watch ↑