TRIDENT - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.6

Let’s unpack the fundamentals of Trident Ltd. with a magnifying lens on its financial health, valuation status, and long-term prospects

📊 Core Financial Performance

Profitability

ROE: 8.28%, ROCE: 9.52% — relatively modest returns, lagging behind sector benchmarks

EPS: ₹0.86 — quite low, suggesting limited earnings per share impact

PAT Qtr Growth: 89.8% — impressive quarterly surge, but absolute PAT figures remain moderate (₹140 Cr)

Leverage & Cash Flow

Debt-to-Equity: 0.35 — a conservative capital structure, which supports long-term financial stability

Consistent PAT and low leverage hint at reasonably managed operations

📈 Valuation Metrics

Metric Value Interpretation

P/E Ratio 36.1 Expensive compared to industry PE of 27.8 — suggests premium expectations

P/B Ratio ~3.42 Fair, though elevated for a company with low ROE

PEG Ratio -1.52 Negative PEG is a red flag — could indicate unreliable growth metrics

Dividend Yield 1.61% Better-than-average yield for textile sector — decent passive income stream

🏢 Business Model & Competitive Edge

Sector: Textiles, paper and chemicals — cyclical by nature

Business Strengths

Export-oriented product base (especially home textiles)

Vertical integration across textile production

Operational capacity expansion in progress

Challenges

Limited pricing power in commoditized segments

Modest margins and returns

📉 Technical Outlook

RSI: 48.4 — neutral zone, lacks momentum confirmation

MACD: 0.05 — flat, indicating range-bound movement

Volume Trends: Slightly subdued compared to weekly average

DMA Position: Trading close to both 50-DMA and 200-DMA — indecisive technical sentiment

📍 Entry Zone & Investment View

Suggested Entry: ₹28.5–₹30 — slightly below current price may offer better reward-to-risk

Holding Horizon: ₹38–₹40 over 12–15 months if profit consistency improves

Investor Fit: Suitable for long-term value seekers who believe in India’s textile export growth and prefer modest dividend yield over high volatility plays

Would you like to compare Trident with Welspun or Himatsingka for broader textile sector dynamics? Or explore how international demand is influencing India's home textile exports?

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