Check Before You Invest : Trustedge Capital Ltd

BSE: 532056 NSE: ISIN: INE398H01015

| Sector: BFSI | Industry: Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does Trustedge Capital Ltd belong to?

Trustedge Capital Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is Trustedge Capital Ltd a good quality company?

Trustedge Capital Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Trustedge Capital Ltd undervalued or overvalued?

Trustedge Capital Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Trustedge Capital Ltd a good buy now?

Trustedge Capital 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 Trustedge Capital Ltd?

Trustedge Capital Ltd Operating Income growth is 5.83% for FY-2025, which is below its 5-year CAGR of 11.24%, indicating slower growth.

Q.2 Return on Assets of Trustedge Capital Ltd?

Trustedge Capital Ltd Return on Asset is 0.8%, which is below its 5-year historical median of 2.9%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	15.08	53.71
PPOP%	-	-
RoA%	0.8	2.9

Q.3 Return on Equity (ROE) of Trustedge Capital Ltd?

Trustedge Capital Ltd Return on Equity is 0.8% for FY-2025, which is below its 5-year historical median of 3.1%, indicating the business is making worse use of its shareholders capital.

Q.4 Net Profit Margin of Trustedge Capital Ltd?

Trustedge Capital 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 15.08% for FY-2025, which is below its 5-year median( 53.71%), indicating decreasing margins.

Q.5 Total Asset growth of Trustedge Capital Ltd?

Trustedge Capital Ltd Total Asset growth is 15% for FY-2025, which is above its 5-year CAGR of 10.44%, indicating faster growth.

Q.6 Capital Adequacy ratio of Trustedge Capital Ltd?

Trustedge Capital Ltd Capital Adequacy ratio (CAR) is 84.3% for FY-2025, which is above the regulatory requirement of 15%, indicating strong capital position.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Trustedge Capital Ltd?

Promoters hold 74.99% of the Trustedge Capital Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Trustedge Capital Ltd vs Industry Peers?

Trustedge Capital Ltd AUM CAGR is 10.44%, 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 Trustedge Capital Ltd vs industry peers

Trustedge Capital Ltd profit metrics are in line with the industry median level of -0.88%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	15.08	9.95
PPOP%	-	-13.4
RoA%	0.8	0.8

Q.3 Operating efficiency of Trustedge Capital Ltd vs industry peers?

Trustedge Capital Ltd ROCE (4.1) is above the industry median of (1.9); while the current ROE (3.1) are above than the 5-year average Industry ROE (1.2). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	15.08	9.95
PPOP%	-	-13.4
RoA%	0.8	0.8
ROCE%	1.1	1.9
ROE%	0.8	1.2

Valuation & price assessment

Q.1 Stock return of Trustedge Capital Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 28.2% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	28.2%	103.1%	140.6%	235.2%

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	-	22.27	33.72
Price to Book	2.86	0.58	0.94
Price to Sales	47.66	10.31	12.44
EV to EBITDA	-309.51	12.00	9.97

Q.4 Valuation ratios of Trustedge Capital Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 2.86% is higher than its historical median of 0.58%, 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?

Trustedge Capital Ltd return on invested capital (ROIC) is 0.78% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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