Trejhara Solutions Limited

Technology — Software - Application · NSE

₹125.25+₹0.35 (+0.28%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, 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, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Trejhara Solutions Limited provides supply chain software services in the India and internationally.

IndustrySoftware - Application

SectorTechnology

Employees89

Annual revenue₹142 Cr

How does it make money?

Turns over ₹142 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 89 employees supports ₹1.60 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.60 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO 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?Little sign of one

Returns on capital of 3.8% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE32.0%

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 +534% while net margin moved -101% 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+534%

Margin effect-101%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.16 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ 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

61/ 100

Average

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

Valuation

56/ 100

Fair

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

23.1x

2Y Median

38.4x

28 monthly readings · mean 60.0x · range 19.8x–146.5x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 40% below its 2y median of 38.4x. 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 40% above the peer median of 16.5x.

vs. its own history

Cheap

38.4x median over 28 months · -40%

vs. sector peers

Expensive

16.5x median of 4 peers · +40%

vs. generic bands

Fair

15x–35x

EV/EBITDA

19.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from -112.2% to 2.9%.
Return on capital is rising
ROCE has improved from -102.6% to 3.8%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

5 items require attention · 3 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 7.64x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 387.7 points, from 399.3% to 11.5%.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹6 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 104% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 40% 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.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 399.3% to 11.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 7.64x. Interest is payable whether or not the business has a good year.
A premium to the sector to defend
It trades 40% above the peer median. That premium needs a reason that persists, or it closes.
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

1Revenue growth stays above 64% a year✓ 85.1% CAGR
Latest reported year was 682.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 11.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹6 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 3.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

₹302 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

23.1x

Fair

Fairly valued against the generic band

P/B Ratio

0.96x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹5.42

Profitable

Profitable on a per-share basis

ROE

2.9%

Weak

Weak capital efficiency

ROCE

3.8%

Weak

Low return on total capital employed

Debt/Equity

7.64x

High

High leverage

Revenue Growth (YoY)

682.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

334.8%

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

-₹6 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

8.0%

Average

Average margins

Net Margin

7.2%

Average

Average bottom-line conversion

Current Ratio

1.52

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.16

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

132.1 / 145.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

26.4

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹22 Cr	₹69 Cr	₹116 Cr	₹142 Cr	+85.1%
EBITDA	₹90 Cr	₹10 Cr	₹11 Cr	₹16 Cr	-43.2%
EBITDA Margin	399.3%	14.3%	9.6%	11.5%	—
PAT (Net Profit)	-₹223 Cr	₹21 Cr	₹4 Cr	₹9 Cr	—
EPS	₹-253.15	₹9.02	₹1.8	₹3.62	—
ROE	-112.2%	9.2%	1.8%	2.9%	—
ROCE	-102.6%	7.8%	2.9%	3.8%	—
Total Debt	₹21 Cr	₹4 Cr	₹8 Cr	₹23 Cr	+3.3%
Free Cash Flow	₹18 Cr	-₹125 Cr	₹5 Cr	-₹6 Cr	—

🟢 Revenue has grown at 85.1% a year over 3 years.

🔴 EBITDA has shrunk at 43.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 399.3% to 11.5% over 3 years (-387.7 pts).

🟢 PAT (Net Profit) has turned positive, from -₹223 Cr to ₹9 Cr.

🟢 EPS has turned positive, from ₹-253.15 to ₹3.62.

🟢 ROE has risen from -112.2% to 2.9% over 3 years (+115.1 pts).

🟢 ROCE has risen from -102.6% to 3.8% over 3 years (+106.4 pts).

🔴 Total Debt has grown at 3.3% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹18 Cr to -₹6 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹396 Cr

Total Liabilities

₹98 Cr

Cash & Equivalents

₹10 Cr

Operating Cash Flow

-₹5 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

60.6%

Corporate Actions

Ex-Dividend Date

16 Sept 2022

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

1 positive1 mixed4 general

Trejhara Solutions Share Price near 52-week low, analysis

Univest, 07 Oct

Is Now The Time To Put Trejhara Solutions (NSE:TREJHARA) On Your Watchlist?

Simply Wall Street, 06 Aug

Trejhara Solutions consolidated profit surges 615% in Q1FY27

scanx.trade, 04 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Trejhara Solutions 52 Week Low Streak: back-to-back lows

Univest, 08 Oct

Trejhara Solutions Ltd is Rated Sell

MarketsMojo, 06 Oct

Trejhara Solutions Share Price Rises 9.40% Today

Univest, 25 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingFinancial Health · Profitability

WeakBusiness Quality · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑