Trident Share Price

Trident Limited Fundamental Analysis

The article examines the business model of Trident Limited, as well as industry fundamentals to determine whether or not it would be a good investment opportunity for you.

Trident Limited

Located in Ludhiana, Punjab, India Trident Limited is a leading diverse group of businesses. Its incorporation date is April 18th, 1990. The company is famous for different products and services including home textiles, paper, chemicals and energy. Trident Limited is also a major stakeholder in the home textiles business, yarns & paper industry. It is ranked among the top five terry towel manufacturers globally.

The company is present all over the globe with products sold in more than 100 countries. It entered the international arena from a single unit under its founder Padma Shri Rajinder Gupta.

As of May 2024, the total paid-up capital of this company stands at INR 509.60 cr. Moreover, it’s listed on the NSE (National Stock Exchange) stock market.

Is the Conglomerate Sector a Goldmine Investment?

The Conglomerate sector in India has profited immensely from the country’s market policies as well as the investment boom starting in the 1990s. By 2027, India is likely to be the world's third economy overtaking Japan and Germany and have the fourth biggest stock market by 2030.

This growth is powered by strategic investments in technology, energy, and a move towards global offshoring and digitalization. The Conglomerate sector with its varied business interests can take advantage of these trends that make it a potentially viable investment.

Investing in conglomerates such as Trident Limited may be a good alternative. Trident Limited appears to be an attractive investment opportunity due to its diversification across industries and an extensive global presence. Its consistent growth and sound financial performance also makes the company a compelling choice for investors seeking steady returns within the conglomerate industry.

Who are Trident Limited competitors in the Conglomerate Sector?

Working within the conglomeration industry, Trident Limited operates in a competitive environment. Some of the company’s competitors include:

• Indo Count Industries Ltd.
• Welspun Living Ltd.
• Bombay Dyeing
• VINATEX
• S R Industries Ltd. SRINDL.
• HeiQ Materials

History of Trident Limited

Trident Limited is a leading diversified group of businesses and serves as the flagship company of the Trident Group. Let’s get into its history and key details:

• Incorporation: Trident Limited, previously known as Abhishek Industries Limited, was incorporated on April 18, 1990, in Punjab, India. The company started implementing its yarn spinning project in 1992.
• Product Range: Trident Limited is a leading manufacturer of Yarn, Bath Linen, Bed Linen, Wheat Straw-based Paper, Chemicals, and Captive Power. They offer a wide range of products including terry towels, bedsheets, yarns, and paper.
• Infrastructure: Trident Limited has state-of-the-art manufacturing facilities in Barnala (Punjab) and Budni (Madhya Pradesh). They have facilities for manufacturing yarn, processing of yarn, manufacture of terry towels, writing & printing paper, and sulphuric acid.
• Certifications: Trident Limited has been awarded several certifications including Carbon Footprint Certified, FSC Certified, BIS Certification, and ISO Certification.
• Awards and Recognition: Trident Limited has been recognized for its excellence in various fields. For instance, Trident Paper was conferred with the “Superbrands Award Seal” by Superbrands India.

Company Profile of Trident Limited

Pros:

• Healthy Dividend Payout: The company has been maintaining a healthy dividend payout of 38.7%.
• Revenue Growth: The company has shown a revenue growth of 6.9% YoY and an operating revenue growth of 7.5% TTM.
• Operating Profit Margin: The operating profit margin is above the industry median at 12.2% for the quarter and 13.8% TTM.
• Return on Equity (ROE): The ROE is above the industry median at 8.1%. It indicates that the company is more effective at generating profit from its existing assets and using shareholder funds.

Cons:

• High P/E Ratio: The stock has a high P/E ratio of 53.82, which might indicate that it’s overvalued.
• Negative PEG TTM: The PEG TTM is -2.62, which might indicate that the company is not expected to experience significant earnings growth.
• Low Institutional Holding: The institutional holding is below the industry median at 2.7%, which might indicate a lack of confidence from large investors.
• Low Piotroski Score: The Piotroski score is below the industry median at 42, which might indicate poor financial health.

The Finances

Here’s a summary of Trident Limited’s financial information as of June 2024:

Shareholding pattern of Trident Limited Limited

Here’s a concise summary of Trident Limited’s shareholding pattern as of June 2024 :

• Promoters: Hold 37.4%
• Foreign Institutional Investors (FII): 23.7%
• Domestic Institutional Investors (DII): 0.1%
• Public: 22.9%

Peer Multiple Comparison

Let us compare Trident Limited with its peers that have full data available. See the table below: