Investment Trust of India Limited (THEINVEST) AI Stock Analysis

• Market Cap: ₹5.26B
• Dividend Yield: N/A
• Average Volume (3M): 7.36K
• Price to Earnings (P/E): 24.1
• Beta (1Y): 1.08
• Revenue Growth: -9.21%
• EPS Growth: -48.40%
• Country: IN
• Employees: 16
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.56
• Shares Outstanding: 52,242,218
• 10 Day Avg. Volume: 884
• 30 Day Avg. Volume: 7,356
• PEG Ratio: 0.12
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 1.92
• P/FCF Ratio: 5.47
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ₹103.00 ▼(-14.17% Downside)

The score is primarily supported by solid financial fundamentals (strong margins and minimal leverage), but is held back by a clearly bearish technical setup (price below all key moving averages and negative MACD). Valuation is neither especially cheap nor expensive at a P/E of 23.69, and no dividend yield data is available to add support.

Positive Factors

High margins

Sustained gross margins above 40% and an improved net margin to 13.46% indicate durable pricing power and efficient cost structure. This supports long-term profitability, funds reinvestment into product and distribution, and cushions earnings against market cyclicalities for months ahead.

Very low leverage

An almost negligible debt load provides strong financial flexibility and low solvency risk. Minimal interest burden supports cash retention for strategic investments, cushions the firm during market stress, and preserves capacity to seize opportunities without diluting shareholders over the medium term.

Free cash flow recovery

A transition from negative to positive free cash flow signals improved cash conversion of earnings, enabling internal funding of operations, potential distributions, or strategic investments. Sustained FCF strengthens liquidity and reduces dependency on external financing over the coming quarters.

Negative Factors

Revenue decline

Nearly 10% recent revenue decline is a persistent risk for an asset manager: falling fee-generating AUM or client flows undermine top-line stability, limit reinvestment capacity, and make it harder to sustain margins and cash generation without reversing the underlying growth trend.

Cash flow volatility

Historic swings in free cash flow reduce predictability of capital available for dividends, buybacks, or growth. For an investment firm, FCF volatility often reflects market-dependent earnings and raises the risk of funding gaps during downturns, complicating long-term planning and investor confidence.

Modest returns and scale

ROE around 6% and a very small headcount suggest limited scale and capital efficiency. Asset managers benefit from scale to lower unit costs and expand fee income; without scale, the firm may struggle to compete on distribution, margin expansion, and long-term return generation.

Investment Trust of India Limited Business Overview & Revenue Model

Company Description

The Investment Trust of India Limited, together with its subsidiaries, provides financial services and broking solutions in India. The company operates through Broking and Related Services; Investment and Advisory Services; Trading Activities; and Financing Activities segments. It provides 3-wheeler and commercial vehicle finance, gold loan, micro business loan, personal loan for students and faculty, and educational institutional loan, as well as KapitalTech – SME finance, such as business/working capital, inventory funding, and bill discounting; and investment solutions, including debt securities – ITI gilts, growth opportunity funds for entrepreneurs, and ITI long-short equity funds for long-term capital appreciation. In addition, the company offers equity, debt, and hybrid funds; broking solutions, such as buying or selling of securities for institutional investors from banking sectors; and services related to capital markets, such as IPO, rights issue, GDR issues, and buyback, etc., as well as corporate advisory and start-up advisory services. Further, it provides equities and derivatives trading, equity research, commodities trading, portfolio management services, and insurance products. The company was formerly known as Fortune Financial Services (India) Limited and changed its name to The Investment Trust of India Limited in June 2018. The Investment Trust of India Limited was incorporated in 1991 and is based in Mumbai, India.

How the Company Makes Money

Investment Trust of India Limited generates revenue through multiple key streams. Firstly, the company earns management fees from its mutual fund operations, which are charged based on the assets under management (AUM). This includes fees for advisory services, fund administration, and performance-based incentives. Additionally, THEINVEST generates income from interest earned on fixed deposits and other financial products it offers. The firm also engages in proprietary trading and investments in equities, bonds, and alternative assets, which contribute to its revenue. Significant partnerships with financial institutions and distribution networks enhance its reach and client base, thus driving more inflows into its investment products. Overall, THEINVEST's diversified portfolio of services and strategic partnerships play a crucial role in its earnings growth.

Investment Trust of India Limited Financial Statement Overview

Summary

Strong profitability and balance sheet quality support the score (gross margins consistently >40%, net margin improved to 13.46%, extremely low debt-to-equity of 0.0004). Offsetting factors include negative revenue growth and historical free-cash-flow volatility despite a recent FCF turnaround.

Income Statement

The company exhibits strong gross profit margins, consistently above 40% in recent years, indicating effective cost management. However, revenue growth has been negative in recent periods, which is a concern for future profitability. The net profit margin has improved significantly, reaching 13.46% in the latest year, suggesting enhanced operational efficiency. Despite these strengths, the declining revenue trend poses a risk to sustained profitability.

Balance Sheet

The balance sheet is robust with a very low debt-to-equity ratio of 0.0004, indicating minimal leverage and financial risk. The return on equity has improved to 6.03%, reflecting better utilization of equity capital. The equity ratio stands at a healthy level, suggesting a strong capital structure. Overall, the company maintains a stable and low-risk financial position.

Cash Flow

The company has shown a remarkable turnaround in free cash flow, with significant growth from negative to positive territory. The operating cash flow to net income ratio is positive, indicating effective cash generation relative to net income. However, the volatility in free cash flow growth and past negative cash flows highlight potential risks in cash flow stability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.37B	3.38B	2.73B	2.92B	3.09B	2.93B
Gross Profit	1.80B	1.83B	1.14B	789.65M	876.76M	1.13B
EBITDA	1.08B	1.12B	726.31M	470.76M	506.81M	746.12M
Net Income	392.98M	425.34M	185.73M	115.01M	15.80M	150.68M
Balance Sheet
Total Assets	0.00	15.42B	13.02B	11.18B	10.07B	11.41B
Cash, Cash Equivalents and Short-Term Investments	0.00	3.21B	1.91B	3.87B	3.38B	1.69B
Total Debt	0.00	3.78B	3.78B	2.00B	1.49B	2.82B
Total Liabilities	-7.53B	7.89B	6.15B	4.72B	4.06B	5.38B
Stockholders Equity	7.53B	7.05B	6.61B	6.36B	6.01B	6.01B
Cash Flow
Free Cash Flow	0.00	1.19B	-2.16B	-1.09B	2.96B	2.47B
Operating Cash Flow	0.00	1.25B	-2.09B	-980.64M	3.02B	2.49B
Investing Cash Flow	0.00	29.57M	9.41M	-254.51M	-517.79M	-121.88M
Financing Cash Flow	0.00	-148.66M	1.72B	657.29M	-1.86B	-1.45B

Investment Trust of India Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 120.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:THEINVEST, the sentiment is Negative. The current price of 120 is above the 20-day moving average (MA) of 112.08, above the 50-day MA of 116.41, and below the 200-day MA of 140.84, indicating a bearish trend. The MACD of -5.00 indicates Positive momentum. The RSI at 36.66 is Neutral, neither overbought nor oversold. The STOCH value of 14.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:THEINVEST.

Investment Trust of India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRIMESECU	74 Outperform	₹9.32B	34.07	―	0.51%	34.10%	-15.20%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CSLFINANCE	66 Neutral	₹6.29B	7.61	―	0.93%	17.32%	13.66%
ARIHANTCAP	65 Neutral	₹8.42B	18.35	―	0.53%	-27.65%	-44.96%
VLSFINANCE	61 Neutral	₹8.81B	-44.52	―	0.52%	-98.34%	-106.71%
THEINVEST	59 Neutral	₹5.26B	24.10	―	―	-9.21%	-48.40%
NBIFIN	57 Neutral	₹4.94B	29.24	―	0.02%	―	―

Investment Trust of India Limited Corporate Events

Investment Trust of India Files SEBI Dematerialisation Compliance Certificate for December Quarter

The Investment Trust of India Limited has submitted to the stock exchanges a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025, confirming procedural adherence in relation to dematerialisation of its securities. According to the registrar and share transfer agent, all securities received for dematerialisation during the quarter were duly verified, accepted or rejected, mutilated and cancelled as required, and the depositories were recorded as the registered owners within the prescribed timelines, underscoring the company’s ongoing compliance with regulatory norms governing electronic shareholding and supporting transparency and confidence for investors and market regulators.

Investment Trust of India Alters Stake in ITI Gold Loans

The Investment Trust of India Limited announced that it will no longer exercise control over ITI Gold Loans Limited (IGLL) following its decision not to participate in IGLL’s recent equity fundraising. As a result, IGLL will be reclassified from a subsidiary to an associate company, reflecting a shift in the company’s strategic involvement and compliance with regulatory requirements. This change is significant for stakeholders as it alters the company’s portfolio and potentially impacts its financial and operational dynamics.