Trident Texofab Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹19.48−₹0.01 (−0.05%)

DalalBaazaar Score

37 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

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

What does this company do?

Trident Texofab Limited engages in the manufacture and wholesale trading of textile fabric cloth in India. The company offers grey, embroidered, digital printed, polyester, and poly-blend fabrics; bed sheets; technical textiles; and suiting products.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees53

Annual revenue₹118 Cr

How does it make money?

Turns over ₹118 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 53 employees supports ₹2.23 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.23 Cr

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 7.5% 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 has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +22% while net margin moved -74% 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+22%

Margin effect-74%

DalalBaazaar Score

37/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ ROCE of 7.5% is below 10% — capital is not working hard
✗ ROCE has fallen by 13.2 points — returns are eroding
✗ EBITDA margin of 7.0% is thin — little cushion if costs rise
✗ Net margin of 0.2% is slim
• Revenue has compounded at 7.0% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

36/ 100

Weak

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

Valuation

42/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

121.8x

3Y Median

41.9x

40 monthly readings · mean 77.8x · range 11.9x–201.0x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 190% above its 3y median of 41.9x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 76% above the peer median of 69.2x.

vs. its own history

Expensive

41.9x median over 40 months · +190%

vs. sector peers

Expensive

69.2x median of 4 peers · +76%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

7.9x

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 14.6% to 1.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 20.7% to 7.5% — often a sign of competition or overexpansion.

Red Flags

7 items require attention · 2 high · 5 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.3x — little room if earnings dip.
🔴Inventory building faster than salesFinancial
Inventory up 93% against revenue up 22% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹10 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 68% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 3.4 points over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 43% against revenue up 22% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 49% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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 10.5% to 7.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 4.4x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 43% against revenue up 22%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 190% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Growth barely outpaces inflation
Revenue compounding at 7.0% 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.

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

1EBITDA margin holds above 5%✓ 7.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.4x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹10 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 1.3x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 5% a year✓ 7.0% CAGR
Latest reported year was -6.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

Investment Checklist

3 / 11 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 3 neutral · 6 weak

Market Cap

₹29 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

121.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.54x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.16

Profitable

Profitable on a per-share basis

ROE

1.3%

Weak

Weak capital efficiency

ROCE

7.5%

Weak

Low return on total capital employed

Debt/Equity

0.66x

Moderate

Moderate leverage

Revenue Growth (YoY)

-6.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-49.3%

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

-₹10 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

4.0%

Weak

Thin margins leave little room for error

Net Margin

0.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.11

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.86

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

20.5 / 22.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

27.5

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹96 Cr	₹99 Cr	₹122 Cr	₹118 Cr	+7.0%
EBITDA	₹10 Cr	₹8 Cr	₹8 Cr	₹8 Cr	-6.3%
EBITDA Margin	10.5%	8.3%	6.7%	7.0%	—
PAT (Net Profit)	₹2 Cr	₹1 Cr	₹3 Cr	₹1 Cr	-31.8%
EPS	₹2.2	₹1.07	₹2.15	₹0.48	-39.9%
ROE	14.6%	6.6%	5.3%	1.3%	—
ROCE	20.7%	17.4%	14.8%	7.5%	—
Total Debt	₹38 Cr	₹40 Cr	₹30 Cr	₹37 Cr	-1.2%
Free Cash Flow	₹6 Cr	₹3 Cr	-₹14 Cr	-₹10 Cr	—

🟢 Revenue has grown at 7.0% a year over 3 years.

🔴 EBITDA has shrunk at 6.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 10.5% to 7.0% over 3 years (-3.4 pts).

🔴 PAT (Net Profit) has shrunk at 31.8% a year over 3 years.

🔴 EPS has shrunk at 39.9% a year over 3 years.

🔴 ROE has fallen from 14.6% to 1.3% over 3 years (-13.3 pts).

🔴 ROCE has fallen from 20.7% to 7.5% over 3 years (-13.2 pts).

🟡 Total Debt has been broadly flat over 3 years (-1.2% a year).

🔴 Free Cash Flow has turned negative, from ₹6 Cr to -₹10 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹111 Cr

Total Liabilities

₹56 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹10 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

38.2%

Corporate Actions

Ex-Dividend Date

18 Jul 2019

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

6 general

Trident Texofab Responds to BSE Clarification on Share Price Movement

scanx.trade, 16 Apr

Compare with ALPS INDS.

Equitymaster, 27 Sept

Trident Texofab promoter trust acquires 15,000 shares in open market

scanx.trade, 23 Aug

Trident Texofab Ltd

Equitypandit, 29 Aug

Trident Texofab EGM on Oct 28 to ratify auditor appointment

scanx.trade, 05 Oct

Trident Texofab Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 02 Sept

Watch Items

Revenue growth is negative (-6.9%) on the latest reported period — check if this is one-off or a trend.
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.
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

MiddlingFinancial Health

WeakBusiness Quality · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑