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TRIDENT - Fundamental Analysis: Financial Health & Valuation

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Rating: 3.3

Last Updated Time : 19 Mar 26, 07:11 pm

Fundamental Rating: 3.3

Stock Code TRIDENT Market Cap 12,462 Cr. Current Price 24.5 ₹ High / Low 34.6 ₹
Stock P/E 30.7 Book Value 9.04 ₹ Dividend Yield 2.04 % ROCE 9.45 %
ROE 8.18 % Face Value 1.00 ₹ DMA 50 25.4 ₹ DMA 200 27.7 ₹
Chg in FII Hold 0.11 % Chg in DII Hold 0.04 % PAT Qtr 42.3 Cr. PAT Prev Qtr 92.4 Cr.
RSI 49.2 MACD -0.89 Volume 14,07,06,541 Avg Vol 1Wk 3,34,81,074
Low price 22.0 ₹ High price 34.6 ₹ PEG Ratio -1.30 Debt to equity 0.34
52w Index 19.9 % Qtr Profit Var -45.8 % EPS 0.80 ₹ Industry PE 20.5

📊 Financials

  • Revenue Growth: Weak, PAT dropped to 42.3 Cr from 92.4 Cr
  • Profit Margins: EPS at 0.80 ₹, showing thin profitability
  • Debt Ratios: Debt-to-equity at 0.34, moderate leverage
  • Cash Flows: Likely under pressure due to declining profits
  • Return Metrics: ROCE 9.45% and ROE 8.18% indicate modest efficiency

💹 Valuation

  • P/E Ratio: 30.7, higher than industry average (20.5), suggesting premium valuation
  • P/B Ratio: ~2.7 (Current Price / Book Value), moderate
  • PEG Ratio: -1.30, reflecting weak growth prospects
  • Intrinsic Value: Overvalued given declining profitability

🏢 Business Model & Health

  • Business Model: Textiles and home furnishings, reliant on export demand
  • Competitive Advantage: Established brand in towels and bed linen, but faces global competition
  • Overall Health: Financially stable but struggling with profitability and growth

🎯 Entry Zone Recommendation

  • Entry Zone: Attractive near 22–24 ₹ levels (close to support)
  • Long-Term Holding: Suitable only for patient investors; dividend yield (2.04%) adds some stability


✅ Positive

  • Dividend yield of 2.04% provides investor returns
  • Moderate debt-to-equity ratio (0.34)
  • FII holdings increased slightly (+0.11%)

⚠️ Limitation

  • Quarterly PAT dropped sharply (42.3 Cr vs 92.4 Cr)
  • Weak ROCE (9.45%) and ROE (8.18%)
  • PEG ratio negative, reflecting poor growth outlook

📉 Company Negative News

  • Quarterly profit variation (-45.8%) highlights volatility
  • Technical indicators (MACD -0.89) suggest weak momentum

📈 Company Positive News

  • FII holdings increased (+0.11%) and DII holdings increased (+0.04%)
  • RSI at 49.2 indicates neutral momentum

🏭 Industry

  • Textile industry P/E: 20.5, lower than TRIDENT’s valuation
  • Sector demand driven by exports and consumer spending, but competitive pressures remain high

🔎 Conclusion

  • TRIDENT is financially stable but faces declining profitability and weak efficiency metrics
  • Valuation is expensive compared to industry peers, with limited growth visibility
  • Entry near 22–24 ₹ may offer value for dividend-seeking investors, but long-term holding requires caution

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