Trust Fintech Limited

Sector n/a · NSE

₹175.35−₹3.40 (−1.90%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

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

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, 6:06 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

The 60-second version of Trust Fintech 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 ₹31 Cr a year. Of every ₹100 of sales, about ₹26 reaches shareholders as profit, with ₹42 left at the operating level before interest, tax and depreciation.

EBITDA margin42.4%

Net margin25.6%

What is its competitive advantage?Little sign of one

Returns on capital of 10.3% 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.

ROCE10.3%

ROE7.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +77% while net margin moved +238% 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+77%

Margin effect+238%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✗ 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

69/ 100

Good

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

Valuation

18/ 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

31.2x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 14.3% to 42.4% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 184% against revenue growth of 77% — customers are taking longer to pay.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Receivables growing faster than salesFinancial
Receivables up 184% against revenue up 77% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹50 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 14.3% to 42.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

Sales are being booked faster than collected
Receivables are up 184% against revenue up 77%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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 16% a year✓ 21.0% CAGR
Latest reported year was -10.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 40%✓ 42.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹50 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✓ 10.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

2 / 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

0 good · 7 neutral · 4 weak

Market Cap

₹418 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

7.3%

Weak

Weak capital efficiency

ROCE

10.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-10.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

-36.0%

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

-₹50 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹175.35

Gross Margin

65.8%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

25.6%

Good

Strong bottom-line conversion

Current Ratio

10.03

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

26.0 / 27.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY25	3Y CAGR
Revenue	₹18 Cr	₹23 Cr	₹35 Cr	₹31 Cr	+21.0%
EBITDA	₹3 Cr	₹6 Cr	₹18 Cr	₹13 Cr	+73.8%
EBITDA Margin	14.3%	25.3%	51.6%	42.4%	—
PAT (Net Profit)	₹1 Cr	₹4 Cr	₹13 Cr	₹8 Cr	+81.6%
EPS	₹0.56	₹1.69	₹5.25	—	—
ROE	8.8%	14.8%	27.7%	7.3%	—
ROCE	11.2%	20.1%	37.3%	10.3%	—
Total Debt	₹1 Cr	-₹0 Cr	₹0 Cr	—	—
Free Cash Flow	-₹1 Cr	-₹0 Cr	₹1 Cr	-₹50 Cr	—

🟢 Revenue has grown at 21.0% a year over 3 years.

🟢 EBITDA has grown at 73.8% a year over 3 years.

🟢 EBITDA Margin has risen from 14.3% to 42.4% over 3 years (+28.1 pts).

🟢 PAT (Net Profit) has grown at 81.6% a year over 3 years.

🔴 ROE has fallen from 8.8% to 7.3% over 3 years (-1.5 pts).

🟡 ROCE has held roughly flat at 10.3% over 3 years.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹118 Cr

Total Liabilities

₹8 Cr

Total Debt

—

Cash & Equivalents

₹5 Cr

Operating Cash Flow

-₹37 Cr

Capex

-₹14 Cr

Recent News

1 mixed5 general

Trust Fintech Ltd Peer Comparison – Compare with Others

Value Research, 01 Sept

Trust Fintech Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Trust Fintech Limited (NSE:TRUST) Stock Rockets 32% But Many Are Still Ignoring The Company

Simply Wall Street, 10 Oct

UPI MDR framework needs rationalisation to protect public trust: Report

Business Standard, 11 Oct

Founders sell Rs 665 crore worth Policybazaar shares to several domestic, global investors

Moneycontrol.com, 29 May

Paytm shares rise despite Mauritius-based FII booking partial profit in fintech company

Livemint, 06 AugPrice 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

Revenue growth is negative (-10.8%) on the latest reported period — check if this is one-off or a trend.
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 QualityStrong14.5/20

🟢Financial HealthStrong13.2/20

🟢GrowthStrong14.9/20

🟡ProfitabilityModerate8.9/15

🟡ValuationFair7.5/15

🔴RiskHigh2.5/10

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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 16% a year21.0% CAGR
✓EBITDA margin holds above 40%42.4%
✗Free cash flow remains positive-₹50 Cr
✓ROCE stays above 8%10.3%