TRIDENT - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.6

📊 Core Financials Breakdown

Profitability

ROCE: 9.45% and ROE: 8.18% — modest, indicating average capital efficiency.

EPS: ₹0.85, with PAT rising from ₹132 Cr. to ₹139 Cr. — a healthy 89.4% quarterly profit variation, though absolute earnings remain modest.

Debt-to-equity: 0.35 — manageable leverage, typical for manufacturing firms.

Dividend Yield: 1.67% — decent for passive income seekers.

Institutional Sentiment

FII holding slightly declined (-0.04%), DII marginally increased (+0.02%) — neutral stance overall.

💰 Valuation Metrics

Metric Value Insight

P/E Ratio 35.2 Above industry average (22.8) — suggests premium pricing.

P/B Ratio ~3.3 Reasonable for a textile and paper manufacturer.

PEG Ratio -1.49 Negative — indicates inconsistent or declining earnings growth.

Intrinsic Value ~₹26–₹28 (est.) Current price of ₹29.9 is slightly above fair value.

🧠 Business Model & Competitive Edge

Core Operations: Diversified into textiles (bed linen, towels, yarn) and paper manufacturing.

Strengths

Strong export presence and brand recognition in home textiles.

Focus on sustainability and innovation in manufacturing.

Challenges

Low margins and modest return metrics.

EPS remains low despite high trading volumes.

RSI at 63.0 — approaching overbought territory, MACD at 0.18 — mild bullish momentum.

📈 Entry Zone & Technicals

DMA 50: ₹29.2, DMA 200: ₹30.4 — price is hovering near both, indicating consolidation.

RSI: 63.0 — nearing overbought.

MACD: 0.18 — weak bullish signal.

📌 Entry Zone: ₹26–₹28 — ideal for accumulation if price dips.

🕰️ Long-Term Holding Guidance

2025 Target: ₹22–₹36

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2030 Target: ₹90–₹160

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Outlook: Trident has long-term potential driven by diversification, sustainability focus, and global expansion. However, near-term valuation and earnings volatility warrant cautious accumulation.

Holding Strategy: Suitable for patient investors with a long-term horizon. Accumulate on dips and monitor quarterly performance for signs of margin expansion and EPS growth.

You can explore Trident’s share price forecast and growth drivers or review its financial fundamentals for deeper insights.

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