Worth Investment & Trading Company Limited

Financial Services — Capital Markets · BSE

₹2.73+₹0.09 (+3.41%)

DalalBaazaar Score

73 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by 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. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:53 pm

Understanding the Business

Company site ↗

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

What does this company do?

Worth Investment & Trading Company Limited operates as a finance and investment company in India. The company invests to acquire, sell, transfer, subscribe for, hold, and otherwise deal in, and investing in any shares, bonds, and stocks issued or guaranteed by any company.

IndustryCapital Markets

SectorFinancial Services

Annual revenue₹13 Cr

How does it make money?

Turns over ₹13 Cr a year. Of every ₹100 of sales, about ₹28 reaches shareholders as profit, with ₹84 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, 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +245% while net margin moved +13% 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+245%

Margin effect+13%

DalalBaazaar Score

73/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 0.84 — moves roughly with the market
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

78/ 100

Good

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

Valuation

71/ 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

24.8x

3Y Median

179.4x

40 monthly readings · mean 240.9x · range 30.3x–710.1x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 86% below its 3y median of 179.4x. 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 57% below the peer median of 58.4x.

vs. its own history

Cheap

179.4x median over 40 months · -86%

vs. sector peers

Cheap

58.4x median of 3 peers · -57%

vs. generic bands

Fair

15x–35x

EV/EBITDA

37.8x

PEG

0.43

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 65.6% to 83.5% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 18.2% to 3.1% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.8x — little room if earnings dip.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 134% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 65.6% to 83.5%. 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 86% 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 57% 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

1Revenue growth stays above 38% a year✓ 51.1% CAGR
Latest reported year was 427.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 82%✓ 83.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 7.9%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 3x✗ 1.8x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 179.4x✓ 24.8x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 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 · 4 neutral · 3 weak

Market Cap

₹101 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

24.8x

Fair

Fairly valued against the generic band

P/B Ratio

2.27x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.11

Profitable

Profitable on a per-share basis

ROE

7.9%

Weak

Weak capital efficiency

ROCE

3.1%

Weak

Low return on total capital employed

Debt/Equity

6.64x

High

High leverage

Revenue Growth (YoY)

427.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

75.0%

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

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

96.4%

Good

Healthy core-business profitability

Net Margin

22.3%

Good

Strong bottom-line conversion

Current Ratio

196.91

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.84

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

3.0 / 3.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

32.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4 Cr	₹4 Cr	₹5 Cr	₹13 Cr	+51.1%
EBITDA	₹2 Cr	₹3 Cr	₹4 Cr	₹11 Cr	+63.8%
EBITDA Margin	65.6%	79.1%	83.6%	83.5%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹2 Cr	₹4 Cr	+57.3%
EPS	₹0.48	₹0.1	₹0.05	₹0.09	-42.6%
ROE	7.7%	5.4%	4.6%	7.9%	—
ROCE	18.2%	9.6%	6.8%	3.1%	—
Total Debt	₹31 Cr	₹24 Cr	₹22 Cr	₹296 Cr	+111.3%
Free Cash Flow	-₹8 Cr	-₹10 Cr	-₹4 Cr	₹0 Cr	—

🟢 Revenue has grown at 51.1% a year over 3 years.

🟢 EBITDA has grown at 63.8% a year over 3 years.

🟢 EBITDA Margin has risen from 65.6% to 83.5% over 3 years (+17.9 pts).

🟢 PAT (Net Profit) has grown at 57.3% a year over 3 years.

🔴 EPS has shrunk at 42.6% a year over 3 years.

🟡 ROE has held roughly flat at 7.9% over 3 years.

🔴 ROCE has fallen from 18.2% to 3.1% over 3 years (-15.1 pts).

🔴 Total Debt has grown at 111.3% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹8 Cr to ₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹344 Cr

Total Liabilities

₹299 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.4%

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

6 general

Top 65 Stocks Under 10 Rupees To Buy In October 2026 | High Potential Picks

Samco, 17 Oct

Worth Investment & Trading Co Upper Circuit Today

Univest, 06 Oct

Worth Investment & Trading Company Ltd is Rated Sell

MarketsMojo, 15 Oct

Worth Investment & Trading passes all five resolutions at 46th AGM

scanx.trade, 05 Oct

87 Best Penny Stocks Under 5 Rs In India For October 2026

Samco, 14 Oct

Top 5 Essentials to Know Before Investing in Stocks

Investopedia, 08 Mar

Watch Items

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 · Growth · Valuation

MiddlingProfitability

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

2 of 5 tripwires tripped — Return on equity stays above 8%; Interest cover stays above 3x · see Key things to watch ↑