Trident Techlabs Limited

Sector n/a · NSE

₹709.00−₹16.00 (−2.21%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

The 60-second version of Trident Techlabs Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

How does it make money?

Turns over ₹97 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Some evidence

ROCE of 17.5% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +44% while net margin moved -10% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+44%

Margin effect-10%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

63/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

18/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

90.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 23.8% to 9.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 27.2% to 17.5% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Inventory building faster than salesFinancial
Inventory up 204% against revenue up 44% — stock may not be moving.
🟡Margins are compressingFinancial
EBITDA margin is down 2.0 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹8 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 16.1% to 14.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 23.8% to 9.7%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 10% a year✓ 13.0% CAGR
Latest reported year was 27.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 12%✓ 14.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹8 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 14%✓ 17.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 9 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹1,225 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

9.7%

Moderate

Moderate capital efficiency

ROCE

17.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.36x

Low

Conservative leverage

Revenue Growth (YoY)

27.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-47.3%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹8 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Gross Margin

32.4%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

6.2%

Average

Average bottom-line conversion

Current Ratio

3.14

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

113.2 / 117.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

26.2

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹67 Cr	₹73 Cr	₹77 Cr	₹97 Cr	+13.0%
EBITDA	₹11 Cr	₹16 Cr	₹19 Cr	₹14 Cr	+8.0%
EBITDA Margin	16.1%	22.5%	25.0%	14.0%	—
PAT (Net Profit)	₹5 Cr	₹9 Cr	₹12 Cr	₹6 Cr	+9.1%
EPS	₹2.7	₹5.52	—	—	—
ROE	23.8%	20.1%	19.8%	9.7%	—
ROCE	27.2%	25.7%	27.3%	17.5%	—
Total Debt	₹23 Cr	₹19 Cr	₹13 Cr	₹22 Cr	-0.8%
Free Cash Flow	₹11 Cr	-₹18 Cr	-₹7 Cr	₹8 Cr	-10.4%

🟢 Revenue has grown at 13.0% a year over 3 years.

🟢 EBITDA has grown at 8.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 16.1% to 14.0% over 3 years (-2.0 pts).

🟢 PAT (Net Profit) has grown at 9.1% a year over 3 years.

🔴 ROE has fallen from 23.8% to 9.7% over 3 years (-14.1 pts).

🔴 ROCE has fallen from 27.2% to 17.5% over 3 years (-9.7 pts).

🟡 Total Debt has been broadly flat over 3 years (-0.8% a year).

🔴 Free Cash Flow has shrunk at 10.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹100 Cr

Total Liabilities

₹38 Cr

Cash & Equivalents

₹20 Cr

Operating Cash Flow

₹8 Cr

Capex

-₹0 Cr

Recent News

2 positive4 general

Why You Might Be Interested In Trident Techlabs Limited (NSE:TECHLABS) For Its Upcoming Dividend

Simply Wall Street, 19 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Will Weakness in Trident Techlabs Limited's (NSE:TECHLABS) Stock Prove Temporary Given Strong Fundamentals?

Simply Wall Street, 23 Jan

Trident Techlabs FY26 revenue rises 27%, PAT declines

scanx.trade, 04 JunResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Trident Techlabs share price lists at ₹98.15 on NSE SME- a stellar 180% premium over the issue price

Livemint, 29 Dec

Trident Techlabs Ltd | Stock Share Price Live

MarketSmith India, 21 Mar

Trident Techlabs IPO to open on December 21; Know price band, issue size, date, GMP and other details

Livemint, 20 Dec

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Valuation

WeakProfitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑