Check Before You Invest : Tradewell Holdings Ltd

BSE: 531203 NSE: ISIN: INE819G01012

| Sector: BFSI | Industry: Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does Tradewell Holdings Ltd belong to?

Tradewell Holdings Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is Tradewell Holdings Ltd a good quality company?

Tradewell Holdings Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Tradewell Holdings Ltd undervalued or overvalued?

Tradewell Holdings Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Tradewell Holdings Ltd a good buy now?

Tradewell Holdings Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Total Income growth of Tradewell Holdings Ltd?

Tradewell Holdings Ltd Operating Income growth is -70.75% for FY-2025, which is below its 5-year CAGR of 83.44%, indicating slower growth.

Q.2 Return on Assets of Tradewell Holdings Ltd?

Tradewell Holdings Ltd Return on Asset is -2.8%, which is in line with its 5-year historical median of -2.8%, indicating stable earnings on assets.

	Current Level	5-year Historic Median
NPM%	-4.64	-4.64
PPOP%	-108.56	-85.71
RoA%	-2.8	-2.8

Q.3 Return on Equity (ROE) of Tradewell Holdings Ltd?

Tradewell Holdings Ltd Return on Equity is -6.1% for FY-2025, which is in line with its 5-year historical median of -6.1%, indicating the business is making similar use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Tradewell Holdings Ltd?

Tradewell Holdings Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -108.56% for FY-2025, which is below its 5-year median(-85.71%), indicating decreasing margins.

Q.5 Net Profit Margin of Tradewell Holdings Ltd?

Tradewell Holdings Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is -4.64% for FY-2025, which is in line with its 5-year median( -4.64%), indicating stable margins.

Q.6 Total Asset growth of Tradewell Holdings Ltd?

Tradewell Holdings Ltd Total Asset growth is 113.52% for FY-2025, which is above its 5-year CAGR of 22.89%, indicating faster growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Tradewell Holdings Ltd?

Promoters hold 74.67% of the Tradewell Holdings Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Tradewell Holdings Ltd vs Industry Peers?

Tradewell Holdings Ltd AUM CAGR is 22.89%, compared to the 5-year industry median CAGR of 9.45%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Tradewell Holdings Ltd vs industry peers

Tradewell Holdings Ltd profit metrics are below the industry median level of -0.88%, indicating weaker profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	-4.64	9.95
PPOP%	-108.56	-13.4
RoA%	-2.8	0.8

Q.3 Operating efficiency of Tradewell Holdings Ltd vs industry peers?

Tradewell Holdings Ltd ROCE (-5.3) is below the industry median of (1.9); while the current ROE (-6.1) are below than the 5-year average Industry ROE (1.2). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	-4.64	9.95
PPOP%	-108.56	-13.4
RoA%	-2.8	0.8
ROCE%	-5.3	1.9
ROE%	-6.1	1.2

Valuation & price assessment

Q.1 Stock return of Tradewell Holdings Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 11.9% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	11.9%	12.7%	27.2%	21.2%

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	9.48	13.08	33.72
Price to Book	3.13	3.11	0.94
Price to Sales	19.8	2.87	12.44
EV to EBITDA	15.05	8.78	9.97

Q.4 Valuation ratios of Tradewell Holdings Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 3.13% is higher than its historical median of 3.11%, indicating that at the current price the stock is overvalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

Tradewell Holdings Ltd return on invested capital (ROIC) is -1.35% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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