Check Before You Invest : Tridhya Tech Ltd

Snapshot

Q.1 Which industry/sub-sector does Tridhya Tech Ltd belong to?

Tridhya Tech Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is Tridhya Tech Ltd a good quality company?

Tridhya Tech Ltd is a quality company, based on a 6-year financial track record.

Q.3 Is Tridhya Tech Ltd undervalued or overvalued?

Tridhya Tech Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Tridhya Tech Ltd a good buy now?

Tridhya Tech 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 Revenue growth of Tridhya Tech Ltd?

Tridhya Tech Ltd revenue growth is 1.9% for FY-2025, which is below its 5-year CAGR of 51.66%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Tridhya Tech Ltd?

Tridhya Tech Ltd Return on capital employed is 3.55% for FY-2025, which is below its 5-year historical median of 13.89%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Tridhya Tech Ltd?

Tridhya Tech Ltd Return on Asset is -1.64%, which is below its 5-year historical median of 6.15%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Tridhya Tech Ltd?

Tridhya Tech Ltd Return on equity is -3.97% for FY-2025, which is below its 5-year historical median of 14.41%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Tridhya Tech Ltd?

Tridhya Tech Ltd Cash conversion cycle is 83 days, above its 5-year historical median of 7 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.32	0.52
ROE	-3.97	14.41
ROCE	3.55	13.89
Cash Conversion Cycle	83 days	7 days

Q.6 Gross Profit margin of Tridhya Tech Ltd?

Tridhya Tech Ltd Gross profit margin which is the profit after deduction of direct costs, is 2.2% for FY-2025, which is below its 5-year median of 15.9%, indicating decreasing margins.

Q.7 Operating Profit Margin of Tridhya Tech Ltd?

Tridhya Tech Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0.86% for FY-2025, which is below its 5-year median of 17.65% indicating decreasing margins.

Q.8 Net Profit Margin of Tridhya Tech Ltd?

Tridhya Tech Ltd Net Profit Margin is -5.11% for FY-2025, is below with its 5-year median of 10.39%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	2.2	15.9
Operating Profit Margin	0.86	17.65
Net Profit Margin	-5.11	10.39

Q.9 Debt to Equity ratio of Tridhya Tech Ltd?

Tridhya Tech Ltd Debt-to-Equity ratio is 2.07, which is above with the industry average of 0.11, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Tridhya Tech Ltd?

Tridhya Tech Ltd Debt to cash flow from operations is 4.12, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Tridhya Tech Ltd?

Promoters hold 61.74% of the Tridhya Tech Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Tridhya Tech Ltd vs industry peers?

Tridhya Tech Ltd revenue CAGR is 51.66%, compared to the industry median CAGR of 10.86%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	1.9	10.9
Gross Profit Growth	-57.4	18.3
Operating Profit Growth	-102.8	18.8
Net Profit Growth	0	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.32	0.5
ROE	-3.97	5.83
ROCE	3.55	6.79
Cash Conversion Cycle (days)	82.91	47

Valuation & price assessment

Q.1 Stock return of Tridhya Tech Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of -59.8% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-59.8%

Q.3 Valuation ratios of Tridhya Tech Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 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	-	31.08	47.37
Price to Book	0.52	1.51	2.63
Price to Sales	0.66	2.16	4.79
EV to EBITDA	18.3	18.63	16.48

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