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Check Before You Invest : True Colors Ltd

BSE: 544531 NSE: ISIN: INE1LDV01015
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does True Colors Ltd belong to?
True Colors Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is True Colors Ltd a good quality company?
True Colors Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is True Colors Ltd undervalued or overvalued?
True Colors Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is True Colors Ltd a good buy now?
True Colors 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 True Colors Ltd?
True Colors Ltd revenue growth is 46% for FY-2025 , which is above its 5 year CAGR of 0% , indicating faster growth.
Q.2 Gross Profit margin of True Colors Ltd?
True Colors Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.6% for FY-2025 , which is above its 5 year median of 11.55% , indicating increasing margins.
Q.3 Operating Profit Margin of True Colors Ltd?
True Colors Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.64% for FY-2025 , which is above its 5 year median of 12.58% indicating increasing margins.
Q.4 Net Profit Margin of True Colors Ltd?
True Colors Ltd Net Profit Margin is 10.57% for FY-2025 , is above with its 5 year median of 7.86%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 15.6 11.55
Operating Profit Margin 17.64 12.58
Net Profit Margin 10.57 7.86
Q.5 Return on Asset of True Colors Ltd?
True Colors Ltd Return on Asset is 18.93%, which is above its 5 year historical median of 14.91%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of True Colors Ltd?
True Colors Ltd Return on equity is 70.49% for FY-2025 , which is below its historical median of 94.23%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of True Colors Ltd?
True Colors Ltd Return on capital employed is 43.85% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of True Colors Ltd?
True Colors Ltd Cash conversion cycle is 51 days, above its historical median of 42 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.79 2.33
ROE 70.49 94.23
ROCE 43.85 75.06
Cash Conversion Cycle 51 days 42 days
Q.9 Debt to Equity ratio of True Colors Ltd?
True Colors Ltd Debt-to-Equity ratio is 0.86 , which is above with the industry average of 0.03 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of True Colors Ltd?
True Colors Ltd Debt to cash flow from operations is 8.46 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of True Colors Ltd?
Promoters hold 68.88% of the True Colors Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of True Colors Ltd vs industry peers?
True Colors 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 Industry Median
Revenue 233.7 13.3
Gross Profit 36.5 0.4
Operating Profit 41 0
Net Profit 25 0.3
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.79 0.5
ROE 70.49 2.03
ROCE 43.85 3.6
Cash Conversion Cycle (days) 51.41 41

Valuation & price assessment

Q.1 Stock return of True Colors Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - - -
Q.3 Valuation ratios of True Colors Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 17.09 0.00 21.75
Price to Book 2.57 0.00 1.55
Price to Sales 1.81 0.00 1.87
EV to EBITDA 11.11 0.00 13.67

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