Trident Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹22.30+₹0.21 (+0.95%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

Trident Limited manufactures, trades, and sells textiles, Yarn, paper, chemicals, and energy in India, the United States, and internationally. The company operates through four segments: Yarn, Towel, Bedsheets, Paper and Chemicals.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees11,560

Annual revenue₹6,305 Cr

How does it make money?

Turns over ₹6,305 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 11,560 employees supports ₹54.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹54.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 10.7% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE25.9%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 9.6% and earnings to grow about 20.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+9.6%

Est. earnings growth+20.0%

Analysts2

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +5% while net margin moved -19% 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+5%

Margin effect-19%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 1.8% — barely ahead of inflation
✗ Profit has declined at 5.1% a year

Quality vs. Valuation

Company Quality

53/ 100

Average

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

Valuation

71/ 100

Cheap

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.

Historical Valuation

Current P/E

28.6x

3Y Median

41.2x

40 monthly readings · mean 40.6x · range 30.1x–54.1x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 31% below its 3y median of 41.2x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 59% below the peer median of 69.2x.

vs. its own history

Cheap

41.2x median over 40 months · -31%

vs. sector peers

Cheap

69.2x median of 4 peers · -59%

vs. generic bands

Fair

15x–35x

EV/EBITDA

14.0x

PEG

1.93

What's Good / What's Bad

🟢 What's Going Well1

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

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Debt is increasingFinancial
Total debt is up 27% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 31% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 59% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹444 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?

Growth barely outpaces inflation
Revenue compounding at 1.8% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Size brings its own risk
Small 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

1EBITDA margin holds above 13%✓ 15.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 1.8% CAGR
Latest reported year was 4.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹444 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 10.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 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
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹11,363 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

28.6x

Fair

Fairly valued against the generic band

P/B Ratio

2.38x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.78

Profitable

Profitable on a per-share basis

ROE

7.9%

Weak

Weak capital efficiency

ROCE

10.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.38x

Low

Conservative leverage

Revenue Growth (YoY)

4.7%

Modest

Modest growth

Profit Growth (YoY)

14.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.24%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹444 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

18.6x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

13.3%

Average

Average margins

Net Margin

5.8%

Average

Average bottom-line conversion

Current Ratio

1.57

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.12

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

22.5 / 23.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

38.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5,982 Cr	₹6,437 Cr	₹6,590 Cr	₹6,305 Cr	+1.8%
EBITDA	₹969 Cr	₹1,011 Cr	₹967 Cr	₹943 Cr	-0.9%
EBITDA Margin	16.2%	15.7%	14.7%	15.0%	—
PAT (Net Profit)	₹441 Cr	₹350 Cr	₹370 Cr	₹377 Cr	-5.1%
EPS	₹0.88	₹0.69	₹0.73	₹0.74	-5.6%
ROE	10.5%	8.1%	8.0%	7.9%	—
ROCE	12.2%	10.8%	10.2%	10.7%	—
Total Debt	₹1,442 Cr	₹2,126 Cr	₹1,635 Cr	₹1,829 Cr	+8.2%
Free Cash Flow	₹647 Cr	-₹360 Cr	₹715 Cr	₹444 Cr	-11.8%

🟡 Revenue has been broadly flat over 3 years (1.8% a year).

🟡 EBITDA has been broadly flat over 3 years (-0.9% a year).

🔴 EBITDA Margin has fallen from 16.2% to 15.0% over 3 years (-1.2 pts).

🔴 PAT (Net Profit) has shrunk at 5.1% a year over 3 years.

🔴 EPS has shrunk at 5.6% a year over 3 years.

🔴 ROE has fallen from 10.5% to 7.9% over 3 years (-2.6 pts).

🔴 ROCE has fallen from 12.2% to 10.7% over 3 years (-1.6 pts).

🔴 Total Debt has grown at 8.2% a year over 3 years.

🔴 Free Cash Flow has shrunk at 11.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹7,537 Cr

Total Liabilities

₹2,765 Cr

Cash & Equivalents

₹31 Cr

Operating Cash Flow

₹760 Cr

Capex

-₹316 Cr

Shareholding (proxy)

Institutional Holding

2.5%

Insider Holding

75.5%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

22 May 2026

Analyst Consensus

Recommendations

1 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹28

+25.6% vs CMP

Target Range

₹26 – ₹30

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 positive2 mixed3 general

Trident Ltd. Share Price near 52-week low: key analysis

Univest, 13 Oct

Trident Limited (TRIDENT.NS) Holds Steady Near ₹22 as Textile Stock Consolidates - EMA Signal

https://www.siam.in/, 15 Oct

Trident Limited Share Price Target 2026 and 2030: The World’s Largest Towel Maker at ₹25

Bitget, 30 AprAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Why Trident Share Price is Rising

Equitymaster, 22 Jul

Trident Limited (NSE:TRIDENT) Analysts Are Cutting Their Estimates: Here's What You Need To Know

Simply Wall Street, 13 FebAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Trident Q1 Results: Profit Rises 13% But Margins Shrink; Revenue Sees Modest Uptick

NDTV Profit, 21 JulResults

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

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Valuation · Risk

MiddlingBusiness Quality

WeakGrowth · Profitability

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.

1 of 5 tripwires tripped — Revenue growth stays above 4% a year · see Key things to watch ↑