Trustedge Capital Limited

Financial Services — Credit Services · BSE

₹130.50−₹0.20 (−0.15%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by short-term liabilities exceed short-term assets, 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. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:56 pm

Understanding the Business

Company site ↗

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

What does this company do?

Trustedge Capital Limited, a non-banking finance company, engages in the finance and investment businesses in India.

IndustryCredit Services

SectorFinancial Services

Annual revenue₹5 Cr

How does it make money?

Turns over ₹5 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation.

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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +427% while net margin moved -85% 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+427%

Margin effect-85%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 110.6x is demanding — it needs sustained high growth to justify
✗ P/E is 103% above its own historical median of 54.4x — expensive by its own standards

Quality vs. Valuation

Company Quality

59/ 100

Average

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

Valuation

26/ 100

Expensive

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

110.6x

3Y Median

54.4x

40 monthly readings · mean 163.8x · range 12.8x–545.6x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 103% above its 3y median of 54.4x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 551% above the peer median of 17.0x.

vs. its own history

Expensive

54.4x median over 40 months · +103%

vs. sector peers

Expensive

17.0x median of 4 peers · +551%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

337.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on capital is falling
ROCE has declined from 3.9% to 0.6% — often a sign of competition or overexpansion.
Short-term liquidity is tight
Current ratio of 0.33 — near-term obligations exceed near-term assets.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 60.6 points, from 67.8% to 7.2%.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 83% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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 67.8% to 7.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 103% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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 56% a year✓ 74.1% CAGR
Latest reported year was 220.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 7.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 1.0%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 54.4x✗ 110.6x 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

₹120 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

110.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.27x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.18

Profitable

Profitable on a per-share basis

ROE

1.0%

Weak

Weak capital efficiency

ROCE

0.6%

Weak

Low return on total capital employed

Debt/Equity

0.18x

Low

Conservative leverage

Revenue Growth (YoY)

220.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

231.1%

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

-₹35 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

26.2%

Good

Healthy core-business profitability

Net Margin

16.4%

Good

Strong bottom-line conversion

Current Ratio

0.33

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.27

Defensive

Steadier than the market

52W Range Position

52%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

133.1 / 134.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹1 Cr	₹1 Cr	₹5 Cr	+74.1%
EBITDA	₹1 Cr	₹1 Cr	₹0 Cr	₹0 Cr	-17.4%
EBITDA Margin	67.8%	71.6%	20.2%	7.2%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹0 Cr	₹1 Cr	-7.1%
EPS	₹1.35	₹1.1	₹0.31	₹0.69	-20.1%
ROE	4.0%	2.9%	0.7%	1.0%	—
ROCE	3.9%	3.6%	1.0%	0.6%	—
Free Cash Flow	₹0 Cr	-₹0 Cr	₹2 Cr	-₹35 Cr	—

🟢 Revenue has grown at 74.1% a year over 3 years.

🔴 EBITDA has shrunk at 17.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 67.8% to 7.2% over 3 years (-60.6 pts).

🔴 PAT (Net Profit) has shrunk at 7.1% a year over 3 years.

🔴 EPS has shrunk at 20.1% a year over 3 years.

🔴 ROE has fallen from 4.0% to 1.0% over 3 years (-3.0 pts).

🔴 ROCE has fallen from 3.9% to 0.6% over 3 years (-3.3 pts).

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹35 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹71 Cr

Total Liabilities

₹16 Cr

Total Debt

₹10 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

-₹35 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

78.3%

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

1 positive1 mixed1 negative3 general

Trustedge Capital CFO Jayprakash Raval resigns effective Oct 17, 2026

scanx.trade, 17 OctManagement

🔴Potentially negativeA senior departure, and an auditor's resignation especially, is worth understanding before anything else in this report.

Adinath Exim Resources Ltd Share Price

Business Today, 16 Oct

Trustedge Capital Limited Share Price

Upstox, 05 May

Mangal Electrical Industries standalone net profit rises 101.61% in the June 2026 quarter

Business Standard, 30 JulResults

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

Trustedge Capital closes trading window from Oct 1 for Q2FY27 results

scanx.trade, 22 SeptResults

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

Trustedge Capital Rights Issue 2025 Date, Price, Allotment, Ratio

IPO Watch, 09 Oct

Watch Items

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

MiddlingBusiness Quality · Growth · Profitability

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

2 of 4 tripwires tripped — Return on equity stays above 8%; Valuation vs its own median of 54.4x · see Key things to watch ↑