TruCap Finance Limited

Financial Services — Credit Services · NSE

₹4.25+₹0.10 (+2.41%)

DalalBaazaar Score

41 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The company is currently losing money, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

TruCap Finance Limited, a non-banking finance company, provides loans in India. The company operates in two segments, Fund Based Activities and Advisory Services.

IndustryCredit Services

SectorFinancial Services

Employees437

Annual revenue₹80 Cr

How does it make money?

Turns over ₹80 Cr a year. Of every ₹100 of sales, about ₹-140 reaches shareholders as profit, with ₹-30 left at the operating level before interest, tax and depreciation. Each of its 437 employees supports ₹18.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹18.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, STATE BANK OF INDIA, HDFC BANK LTD, ICICI BANK 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 ROE16.5%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -33% while net margin moved -26917% 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-33%

Margin effect-26917%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE has fallen by 77.2 points — returns are eroding
✗ EBITDA margin of -29.8% is thin — little cushion if costs rise
✗ The business is lossmaking at the net level
• Lender: ROCE is excluded here because borrowing is raw material for this business, not leverage

Quality vs. Valuation

Company Quality

41/ 100

Weak

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

Valuation

36/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well0

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

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 0.3% to -220.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 1.5% to -75.8% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -3.8x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹113 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 40.7 points, from 10.8% to -29.8%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -1.7x to -3.8x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 10.8% to -29.8%. 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 0.3% to -220.9%. 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.
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.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1EBITDA margin holds above -32%✓ -29.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ -220.9%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Interest cover stays above 3x✗ -3.8x
How much operating profit can fall before interest stops being comfortably covered.

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

2 good · 2 neutral · 7 weak

Market Cap

₹51 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.68x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-9.59

Loss-making

Negative earnings per share — the business is losing money

ROE

-220.9%

Weak

Weak capital efficiency

ROCE

-75.8%

Weak

Low return on total capital employed

Debt/Equity

6.50x

High

High leverage

Revenue Growth (YoY)

-90.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-90.1%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

₹130 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-1262.6%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.01

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.86

Market-like

Moves roughly in line with the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

4.2 / 4.2

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

53.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹121 Cr	₹159 Cr	₹192 Cr	₹80 Cr	-12.7%
EBITDA	₹13 Cr	₹28 Cr	₹38 Cr	-₹24 Cr	—
EBITDA Margin	10.8%	17.6%	19.8%	-29.8%	—
PAT (Net Profit)	₹1 Cr	₹11 Cr	-₹59 Cr	-₹113 Cr	—
EPS	₹0.06	₹0.93	₹-5.07	₹-9.48	—
ROE	0.3%	5.2%	-36.5%	-220.9%	—
ROCE	1.5%	2.9%	-10.8%	-75.8%	—
Total Debt	₹443 Cr	₹686 Cr	₹520 Cr	₹331 Cr	-9.2%
Free Cash Flow	-₹165 Cr	-₹222 Cr	₹211 Cr	₹130 Cr	—

🔴 Revenue has shrunk at 12.7% a year over 3 years.

🔴 EBITDA has turned negative, from ₹13 Cr to -₹24 Cr.

🔴 EBITDA Margin has fallen from 10.8% to -29.8% over 3 years (-40.7 pts).

🔴 PAT (Net Profit) has turned negative, from ₹1 Cr to -₹113 Cr.

🔴 EPS has turned negative, from ₹0.06 to ₹-9.48.

🔴 ROE has fallen from 0.3% to -220.9% over 3 years (-221.2 pts).

🔴 ROCE has fallen from 1.5% to -75.8% over 3 years (-77.2 pts).

🟢 Total Debt has shrunk at 9.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹165 Cr to ₹130 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹392 Cr

Total Liabilities

₹341 Cr

Cash & Equivalents

₹8 Cr

Operating Cash Flow

₹130 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

52.5%

Corporate Actions

Ex-Dividend Date

19 Sept 2024

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
STATE BANK OF INDIA	10.3x	15.2%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%

Recent News

2 mixed4 general

SAT extends stay on TruCap Finance open offer hearing

scanx.trade, 18 Oct

Why Is TruCap Finance Share Price Falling Key Reasons 2026

Univest, 24 JunPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

TruCap Finance Share: Bull Case vs Bear Case for 2026

Univest, 28 Sept

Trucap Finance Updates on SAT Interim Order for Open Offer Proceedings

scanx.trade, 27 Mar

TruCap Finance Share Analyst Review 2026: Price Target and Outlook

Univest, 12 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Smallcap financial service company TruCap Finance lists on NSE, stock up 6% on debut

Livemint, 20 Jun

Watch Items

Revenue growth is negative (-90.9%) 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

StrongFinancial Health

MiddlingValuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 3 high-severity red flags sit above this conclusion and should be read first.

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