Check Before You Invest : Trom Industries Ltd

Q: Which industry/sub-sector does Trom Industries Ltd belong to?

Trom Industries Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.

Q: Is Trom Industries Ltd a good quality company?

Trom Industries Ltd is a quality company, based on a multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Trom Industries Ltd undervalued or overvalued?

Trom Industries Ltd appears Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 11.36, Historic Median: 22.73. Price to Book, Current: 1.12, Historic Median: 4.43. Price to Sales, Current: 0.56, Historic Median: 1.16. EV to EBITDA, Current: 6.78, Historic Median: 14.93

Q: Is Trom Industries Ltd a good buy now?

Trom Industries 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

Q: Gross Profit margin of Trom Industries Ltd?

Trom Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.7% for FY-2025, which is above its 5-year median of 2.6%, indicating increasing margins.

Q: Operating Profit Margin of Trom Industries Ltd?

Trom Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.31% for FY-2025, which is above its 5-year median of 4.89% indicating increasing margins.

Q: Net Profit Margin of Trom Industries Ltd?

Trom Industries Ltd Net Profit Margin is 4.94% for FY-2025, is above its 5-year median of 1.3%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 6.7, Historic Median: 2.6. Operating Profit Margin (%), Current: 7.31, Historic Median: 4.89. Net Profit Margin (%), Current: 4.94, Historic Median: 1.3

Q: Return on Asset of Trom Industries Ltd?

Trom Industries Ltd Return on Asset is 8.33%, which is above its 5-year historical median of 1.98%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Trom Industries Ltd?

Trom Industries Ltd Return on capital employed is 18.45% for FY-2025, which is below its 5-year historical median of 22.77%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q: Return on Equity (ROE) of Trom Industries Ltd?

Trom Industries Ltd Return on equity is 15.64% for FY-2025, which is in line with its 5-year historical median of 15.87%, indicating the business is making similar use of its shareholders capital.

Check Before You Invest : Trom Industries Ltd

Snapshot

Q.1 Which industry/sub-sector does Trom Industries Ltd belong to?

Trom Industries Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.

Q.2 Is Trom Industries Ltd a good quality company?

Trom Industries Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Trom Industries Ltd undervalued or overvalued?

Trom Industries Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	11.36	22.73
Price to Book	1.12	4.43
Price to Sales	0.56	1.16
EV to EBITDA	6.78	14.93

Q.4 Is Trom Industries Ltd a good buy now?

Trom Industries 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

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

Q.1 Gross Profit margin of Trom Industries Ltd?

Trom Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.7% for FY-2025, which is above its 5-year median of 2.6%, indicating increasing margins.

Q.2 Operating Profit Margin of Trom Industries Ltd?

Trom Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.31% for FY-2025, which is above its 5-year median of 4.89% indicating increasing margins.

Q.3 Net Profit Margin of Trom Industries Ltd?

Trom Industries Ltd Net Profit Margin is 4.94% for FY-2025, is above its 5-year median of 1.3%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	6.7	2.6
Operating Profit Margin (%)	7.31	4.89
Net Profit Margin (%)	4.94	1.3

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Trom Industries Ltd?

Trom Industries Ltd Return on Asset is 8.33%, which is above its 5-year historical median of 1.98%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Trom Industries Ltd?

Trom Industries Ltd Return on capital employed is 18.45% for FY-2025, which is below its 5-year historical median of 22.77%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of Trom Industries Ltd?

Trom Industries Ltd Return on equity is 15.64% for FY-2025, which is in line with its 5-year historical median of 15.87%, indicating the business is making similar use of its shareholders capital.

C: How much debt does the business have and is it at a sustainable level?

Q.7 Debt to Equity ratio of Trom Industries Ltd?

Trom Industries Ltd Debt-to-Equity ratio is 0.31, which is lower the industry average of 0.38, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of Trom Industries Ltd?

Trom Industries Ltd Debt to cash flow from operations is -0.81, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Trom Industries Ltd?

Q.1 Promoter shareholding and pledge status of Trom Industries Ltd?

Promoters hold 69.52% of the Trom Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Trom Industries Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Trom Industries Ltd vs industry peers?

Trom Industries Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 0%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-	-
Gross Profit Growth (%)	-19	17
Operating Profit Growth (%)	-17.3	14
Net Profit Growth (%)	-19	20.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.69	0.63
ROE (%)	15.64	6.16
ROCE (%)	18.45	10.5
Cash Conversion Cycle (days)	106.72	52

Valuation & price assessment

Q.1 Stock return of Trom Industries Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of -67.3% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-67.3%

Q.2 Valuation ratios of Trom Industries Ltd vs historical?

The current P/E ratio of 11.36 is lower than its historical median of 22.73, indicating that the stock is trading below its historical average valuation.

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	11.36	22.73	21.52
Price to Book	1.12	4.43	1.74
Price to Sales	0.56	1.16	1.51
EV to EBITDA	6.78	14.93	11.49

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Check Before You Invest : Trom Industries Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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