TruCap Finance Stock Price Analysis and Quick Research Report. Is TruCap Finance an attractive stock to invest in?

Around 2% of India's total population invests in financial assets. The penetration of the mutual fund industry in India is close to 7% (Based on the number of PAN cardholders). This under penetration of the mutual fund industry offers a huge opportunity for the industry to grow.

Migration to financial savings, wider distribution and sustainable performance are expected to enable growth in the industry.

Also, increasing financial literacy among investors, digitization and the number of mediums available tend to attract more investors to invest in the financial markets.

TruCap Finance stock price today is Rs 14.11. To understand the functions of the TruCap Finance better, you must go through the following points:

Key Financials –

• Profitability: Profit margin (PAT margin) of the company shows how well a company controls its cost. It is one of the important indicators to show the financial health of the company. Net profit of the company is Rs 11.7082 Cr and the compounded growth of profit in the past 3 years is 157.652750458916 %. The PAT margin of TruCap Finance is 7.2695 %.

• EPS growth: Investors should ensure the EPS figure is growing faster than revenue numbers because it indicates company management is increasing the efficiency with which it runs the company. In TruCap Finance , the EPS grew by 109.979 % YOY. 

 Financial Ratios –

•  Return on Equity (ROE): The Company has a poor ROE track record. The ROE of TruCap Finance is at 5.6172 % for the latest year.

• P/E Ratio: Relative valuation metrics like the P/E ratio can be used to see if the stock of TruCap Finance is worth at the current levels at Rs 14.11. The stock is trading at a current P/E ratio of 64.0575 and the average historical P/E for the last 5 years was 282.25294323208.

• Share Price: - The current share price of TruCap Finance is Rs 14.11. One can use valuation calculators of ticker to know if TruCap Finance share price is undervalued or overvalued.

• P/B ratio can be one of the best metrics to value such companies. Currently, TruCap Finance is trading at a P/B of 1.0323 . The average historical P/B for the last 5 years was 4.71716005640826. This can be compared with the Market price per share in order to know if the stock is undervalued or overvalued.