Trident (TRIDENT)

FairStock Score: 45/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Low leverage: Debt/Equity of 0.35 and Altman Z-Score of 3.10 indicate financial stability
• Positive free cash flow of ₹740 Cr supports operations, capex and dividend payments
• Promoter holding of 73.68% aligns management's interests with minority shareholders
• Piotroski F-Score of 6/9 suggests reasonable fundamental health
• Dividend yield of 1.95% provides some cash return while waiting for value recognition

Concerns

• Expensive valuation: P/E of 31.92, P/B of 2.87, EV/EBITDA of 88.57 and PEG of 2.71 are far too high for the growth on offer
• Weak returns: ROE of 8.84% and ROCE of 9.48% show poor capital efficiency
• Thin margins: Latest quarter net profit of ₹44 Cr on sales of ₹1,574 Cr implies only ~2.8% net margin
• No margin of safety: Graham Number of ₹12.78 and DCF value of ₹1.44 are far below the current price of ₹25.99

AI Analysis

At ₹25.99, Trident sells for 31.92 times earnings and 2.87 times book value. Yet it earns only 8.84% on equity and 9.48% on capital. Those are not the numbers of a wonderful business. Graham taught me to buy with a margin of safety, and here the margin is deeply negative: the Graham number is ₹12.78 and the DCF value is just ₹1.44, while the market price is ₹25.99. The recent quarter shows ₹1,574 crore in sales but only ₹44 crore in net profit, a thin net margin near 2.8%. That smells of a commodity textile company with negligible pricing power. Revenue growth has stalled too — the latest year shows a 1.15% decline, and the five-year revenue CAGR of 9.05% is not enough to justify a P/E of 31.92 or a PEG of 2.71. The balance sheet is the main positive: debt/equity is 0.35, the Altman Z-score of 3.10 is reassuring, free cash flow of ₹740 crore is real, and promoters own 73.68%, so their interests are aligned with mine. The Piotroski F-score of 6/9 gives me some comfort that the financials are not warning of trouble. The 1.95% dividend yield is a small reward while I wait, but it cannot compensate for paying 88.57 times EV/EBITDA for a slow grower. FairStock's 48/100 mixed score looks fair. This is not a business I can value with a straight face at today's price. I would rather watch from the sidelines until either the price falls closer to intrinsic value or returns on capital improve materially. In investing, you do not need to swing at every pitch.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer