Our 18th company in the Series of Best Stocks Below Rs. 50 is Trident Ltd.
This company is good for investing purpose or not ?
Let’s start with the Company profile
Company Profile :
Trident Limited is a terry towel, yarn and wheat straw based paper manufacturer.
Now Let’s check the important fundamental figures of this company. This is a small cap company with Market Cap ₹15,920 cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 19.09
Sector PE Ratio: 127.92
PE Ratio of this company is low but better than Sector’s PE. So it’s a Good PE than the peers of this company.
PB Ratio : 4.14
Sector PB Ratio : 5.70
PB Ratio of this company is low than Sector’s PB ratio. So it’s Good PB than the peers of this company.
Dividend Yield : 1.15%
Sector Dividend Yield : 0.63%
Dividend Yield of this company is low than Sector. Dividend of this company is Good than the peers of this company.
ROE: 21.68%
ROCE: 26.79%
ROE (Return on equity) and ROCE (Return on capital equity) is Good.
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
| Year | Revenue(cr.) | Profit(cr.) |
| 2022 | 7,020.84 | 833.75 |
| 2021 | 4,547.29 | 304.39 |
| 2020 | 4,747.91 | 339.70 |
| 2019 | 5,292.26 | 371.77 |
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
| 2022 | 2021 | 2020 | 2019 |
| 2,644.45 | 2,443.33 | 2,755.08 | 3,183.04 |
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2022, Company have 2,644.45 Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
| 2022 | 2021 | 2020 | 2019 |
| 540.90 | 171.49 | 1,049.62 | 549.23 |
Debt Level: TRIDENT’s net debt to equity ratio (34.4%) is considered satisfactory.
Reducing Debt: TRIDENT’s debt to equity ratio has reduced from 103.2% to 41.5% over the past 5 years.
Debt Coverage: TRIDENT’s debt is well covered by operating cash flow (56.5%).
Interest Coverage: TRIDENT’s interest payments on its debt are well covered by EBIT (11x coverage).
Share Holding Pattern
| Promotor Holding | Foreign Institution | Mutual Fund | Other Domestic Institutions | Retail & Others | |
| Dec 2022 | 72.94% | 2.36% | 0.04% | 1.43% | 24.66% |
| Sep 2022 | 72.94% | 2.59% | 0.04% | 1.53% | 24.43% |
| Jun 2022 | 72.94% | 3.17% | 0.04% | 1.53% | 23.84% |
| Mar 2022 | 72.94% | 3.13% | 0.00% | 1.66% | 23.92% |
Above table showing there is no big change in Promotors holding which is 72.94% in June 2022. FIIs invested in June 2022 with 2.36% and retail investor is 24.66%.
Investment Checklist for Trident Ltd.
- The company is currently profitable
- Profit margins (7.4%) are lower than last year (11.3%)
- Earnings are forecast to grow by an average of 27.1% per year for the next 3 years
- Debt level is low and not considered a risk
- Share price has been stable over the past 3 months
- The company’s earnings are high quality
- At least 3 years of financial data is available
- Shareholders have not been meaningfully diluted in the past year or recently listed
- Revenue is meaningful (₹66B)
- Market cap is meaningful (₹158B)
- TRIDENT does not have negative shareholders equity.
According to its historical performance we can predict stock target.
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Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
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Entry Buying Zone : 25 to 30
Target: 50 ( 55% Upside)
Time Horizon: 1 Year
Risk Profile: High Risk (Stock is 3.71x as volatile as Nifty)
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Hope you liked Our 18th company in the Series of Best Stocks Below Rs. 50. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
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