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TRIDENT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | TRIDENT | Market Cap | 13,193 Cr. | Current Price | 25.9 ₹ | High / Low | 34.6 ₹ |
| Stock P/E | 29.9 | Book Value | 9.04 ₹ | Dividend Yield | 1.93 % | ROCE | 9.45 % |
| ROE | 8.18 % | Face Value | 1.00 ₹ | DMA 50 | 26.7 ₹ | DMA 200 | 28.6 ₹ |
| Chg in FII Hold | 0.11 % | Chg in DII Hold | 0.04 % | PAT Qtr | 92.4 Cr. | PAT Prev Qtr | 139 Cr. |
| RSI | 47.4 | MACD | -0.30 | Volume | 3,54,53,539 | Avg Vol 1Wk | 1,47,69,790 |
| Low price | 23.1 ₹ | High price | 34.6 ₹ | PEG Ratio | -1.27 | Debt to equity | 0.34 |
| 52w Index | 24.0 % | Qtr Profit Var | 10.7 % | EPS | 0.87 ₹ | Industry PE | 17.6 |
📊 Core Financials
- Revenue Growth: Quarterly PAT declined from 139 Cr. to 92.4 Cr., showing weak momentum.
- Profit Margins: EPS at 0.87 ₹ reflects thin profitability.
- Debt Ratios: Debt-to-equity at 0.34, moderate leverage but manageable.
- Cash Flows: Likely under pressure given declining profits.
- Return Metrics: ROCE at 9.45% and ROE at 8.18% are modest, indicating average efficiency.
💹 Valuation Indicators
- P/E Ratio: 29.9, higher than industry average (17.6), suggesting premium valuation despite weak earnings.
- P/B Ratio: ~2.86 (Current Price / Book Value), moderately high.
- PEG Ratio: -1.27, negative, reflecting poor growth prospects.
- Intrinsic Value: Current price (25.9 ₹) trades below DMA 50 (26.7 ₹) and DMA 200 (28.6 ₹), signaling bearish sentiment.
🏢 Business Model & Competitive Advantage
- TRIDENT operates in textiles, paper, and chemicals, with diversified product lines.
- Competitive advantage lies in scale and integrated operations, but profitability remains weak.
- High competition in textiles and cyclical demand limit pricing power.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive only near 23–25 ₹, close to support levels, given weak fundamentals.
- Long-Term Holding: Risky unless profitability improves. Suitable only for speculative investors with high risk tolerance.
Positive
- Dividend yield at 1.93% provides some shareholder return.
- FII (+0.11%) and DII (+0.04%) holdings increased slightly, showing marginal institutional support.
- Strong trading volumes indicate continued investor interest.
Limitation
- EPS at 0.87 ₹ reflects weak profitability.
- P/E ratio higher than industry average despite declining earnings.
- Technical indicators weak (MACD negative, RSI mid-range).
Company Negative News
- Quarterly PAT declined from 139 Cr. to 92.4 Cr.
- Stock trading below DMA 50 and DMA 200, reflecting bearish sentiment.
Company Positive News
- Dividend yield at 1.93% supports shareholder value.
- Marginal increase in institutional holdings.
Industry
- Industry P/E at 17.6, lower than TRIDENT’s valuation, suggesting sector trades at more reasonable multiples.
- Textiles sector faces cyclical demand and global competition, limiting margin expansion.
Conclusion
- TRIDENT shows weak fundamentals with declining profits and stretched valuation.
- Dividend yield provides minor support, but long-term holding is risky without earnings improvement.
- Entry only near 23–25 ₹ offers better risk-reward for speculative investors.
I can also prepare a peer comparison HTML table (Trident vs Welspun, Indo Count, Himatsingka) to highlight relative valuation and profitability metrics if you’d like.