NSEI:TRIDENT

Stock Analysis Report

Executive Summary

Trident Limited manufactures, trades in, and sells yarn, terry towels, bedsheets, paper, and chemical products in the United States, India, and internationally.


Snowflake Analysis

Undervalued with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Trident's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TRIDENT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.5%

TRIDENT

-2.4%

IN Luxury

-3.0%

IN Market


1 Year Return

-46.3%

TRIDENT

-26.9%

IN Luxury

-29.2%

IN Market

Return vs Industry: TRIDENT underperformed the Indian Luxury industry which returned -26.9% over the past year.

Return vs Market: TRIDENT underperformed the Indian Market which returned -29.2% over the past year.


Shareholder returns

TRIDENTIndustryMarket
7 Day5.5%-2.4%-3.0%
30 Day-33.6%-28.4%-26.9%
90 Day-42.1%-25.6%-28.5%
1 Year-42.5%-46.3%-26.2%-26.9%-27.7%-29.2%
3 Year-49.2%-55.5%0.8%-1.6%-15.2%-19.9%
5 Year101.0%68.9%43.7%38.6%-3.1%-8.1%

Price Volatility Vs. Market

How volatile is Trident's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Trident undervalued compared to its fair value and its price relative to the market?

28.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TRIDENT (₹3.85) is trading below our estimate of fair value (₹5.41)

Significantly Below Fair Value: TRIDENT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TRIDENT is good value based on its PE Ratio (4.9x) compared to the Luxury industry average (7.8x).

PE vs Market: TRIDENT is good value based on its PE Ratio (4.9x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: TRIDENT is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: TRIDENT is overvalued based on its PB Ratio (0.6x) compared to the IN Luxury industry average (0.4x).


Next Steps

Future Growth

How is Trident forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRIDENT's forecast earnings growth (10.4% per year) is above the savings rate (6.5%).

Earnings vs Market: TRIDENT's earnings (10.4% per year) are forecast to grow slower than the Indian market (19.8% per year).

High Growth Earnings: TRIDENT's earnings are forecast to grow, but not significantly.

Revenue vs Market: TRIDENT's revenue (8.7% per year) is forecast to grow slower than the Indian market (9.1% per year).

High Growth Revenue: TRIDENT's revenue (8.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TRIDENT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Trident performed over the past 5 years?

18.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRIDENT has high quality earnings.

Growing Profit Margin: TRIDENT's current net profit margins (7.5%) are higher than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: TRIDENT's earnings have grown by 18% per year over the past 5 years.

Accelerating Growth: TRIDENT's earnings growth over the past year (13.3%) is below its 5-year average (18% per year).

Earnings vs Industry: TRIDENT earnings growth over the past year (13.3%) exceeded the Luxury industry 6.4%.


Return on Equity

High ROE: TRIDENT's Return on Equity (12.5%) is considered low.


Next Steps

Financial Health

How is Trident's financial position?


Financial Position Analysis

Short Term Liabilities: TRIDENT's short term assets (₹16.4B) exceed its short term liabilities (₹14.0B).

Long Term Liabilities: TRIDENT's short term assets (₹16.4B) exceed its long term liabilities (₹11.9B).


Debt to Equity History and Analysis

Debt Level: TRIDENT's debt to equity ratio (60.7%) is considered high.

Reducing Debt: TRIDENT's debt to equity ratio has reduced from 181.3% to 60.7% over the past 5 years.

Debt Coverage: TRIDENT's debt is well covered by operating cash flow (47.5%).

Interest Coverage: TRIDENT's interest payments on its debt are well covered by EBIT (8.6x coverage).


Balance Sheet

Inventory Level: TRIDENT has a high level of physical assets or inventory.

Debt Coverage by Assets: TRIDENT's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is Trident's current dividend yield, its reliability and sustainability?

7.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TRIDENT's dividend (7.83%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: TRIDENT's dividend (7.83%) is in the top 25% of dividend payers in the Indian market (4.18%)


Stability and Growth of Payments

Stable Dividend: TRIDENT has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: TRIDENT's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.1%), TRIDENT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TRIDENT's dividends in 3 years are forecast to be thoroughly covered by earnings (10.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.2yrs

Average management tenure


CEO

- Amandeep (50yo)

0.50

Tenure

Mr. - Amandeep has been Managing Director of Trident Limited since September 5, 2019. Mr. Amandeep has been Additional Non-Executive Non Independent Director of Trident Limited since August 3, 2019. He is  ...


Leadership Team

NamePositionTenureCompensationOwnership
Gunjan Shroff
Chief Financial Officer1.17yrs₹33.69m0.0054% 1.1m
Ramandeep Kaur
Compliance Officer & Company Secretary3.17yrs₹4.80m0.0019% 366.9k
Deepak Nanda
Whole-Time Director8.33yrs₹26.30mno data
- Amandeep
MD & Additional Non-Executive Non Independent Director0.50yrno datano data
Sheerish Kumar
Presidentno datano datano data
Abhinav Gupta
Investor Relationno datano datano data
Pardeep Markanday
Chief Operating Officer of Home Textiles7.42yrs₹5.15mno data
Abhishek Gupta
Chairman of the Corporate Advisory Board & Chief Strategic Marketing7.42yrs₹15.50mno data
R. Johri
Chief Operating Officer of Papers7.42yrsno datano data
Rajnish Gera
Chief Operating Officer of Energy & Chemicals7.42yrsno datano data

3.2yrs

Average Tenure

48yo

Average Age

Experienced Management: TRIDENT's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Deepak Nanda
Whole-Time Director8.33yrs₹26.30mno data
- Amandeep
MD & Additional Non-Executive Non Independent Director0.50yrno datano data
Abhishek Gupta
Chairman of the Corporate Advisory Board & Chief Strategic Marketing7.42yrs₹15.50mno data
Rajinder Gupta
Co-Chairman7.92yrs₹163.00m0.22% 42.7m
Rajiv Dewan
Independent Non-Executive Director14.83yrs₹800.00k0.0046% 892.0k
Pallavi Shroff
Independent Chairpersonno data₹500.00kno data
Dinesh Mittal
Non-Executive Independent Director2.58yrs₹5.30mno data

7.7yrs

Average Tenure

59yo

Average Age

Experienced Board: TRIDENT's board of directors are considered experienced (7.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Trident Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Trident Limited
  • Ticker: TRIDENT
  • Exchange: NSEI
  • Founded: 1990
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹19.518b
  • Shares outstanding: 5.10b
  • Website: https://www.tridentindia.com

Location

  • Trident Limited
  • E-212, Kitchlu Nagar
  • Ludhiana
  • Punjab
  • 141001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
521064BSE (Mumbai Stock Exchange)YesEquity SharesININRJun 2001
TRIDENTNSEI (National Stock Exchange of India)YesEquity SharesININRJun 2001

Biography

Trident Limited manufactures, trades in, and sells yarn, terry towels, bedsheets, paper, and chemical products in the United States, India, and internationally. The company operates through Textiles, and Paper and Chemical segments. It offers home textiles, such as terry towels, bedsheets, blankets, dohars, and bathrobes. The company also provides cotton, blended, special open end, organic cotton, core spun, eli-twist, compact, and slub yarns, as well as value added yarns consisting of mélange, package dyed, gassed mercerized, zero twist, wrapper, bamboo/cotton, modal/cotton, soya/cotton, polyester/cotton, BCI cotton, BMP cotton, and dyed yarn products; copier and eco-print papers; and commercial, battery, and laboratory reagent grade sulphuric acid for detergent manufacturers, iron and steel units, and textile factories, as well as pharmaceuticals, paper, dyes and chemicals, alum, detergent slurry, and ETP industries. Trident Limited also exports its products. The company was formerly known as Abhishek Industries Limited and changed its name to Trident Limited in April 2011. The company was founded in 1990 and is headquartered in Ludhiana, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 13:01
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.