Current Rating and Its Implications
MarketsMOJO’s 'Sell' rating for Trident Ltd indicates a cautious stance towards the stock, suggesting that investors may want to consider reducing exposure or avoiding new purchases at this time. This rating is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment of the company’s investment potential in the garments and apparels sector.
Quality Assessment
As of 23 February 2026, Trident Ltd’s quality grade is assessed as below average. This reflects concerns about the company’s operational efficiency and profitability metrics. Over the past five years, the company’s operating profit has grown at a modest annual rate of 6.54%, which is relatively weak for a firm in its sector. Additionally, the latest quarterly data reveals a significant decline in profit after tax (PAT), which has fallen by 44.5% to ₹44.24 crores. The operating profit to interest coverage ratio stands at a low 5.31 times, indicating limited buffer to service debt obligations comfortably. These factors collectively suggest that the company’s earnings quality and operational resilience are under pressure.
Valuation Perspective
Trident Ltd’s valuation grade is currently rated as fair. While the stock does not appear excessively overvalued, the modest valuation does not offer a compelling margin of safety given the company’s underlying challenges. The limited interest from domestic mutual funds, which hold only 0.53% of the company, may reflect a cautious stance from institutional investors who typically conduct thorough on-the-ground research. This restrained institutional interest could be indicative of concerns about the company’s growth prospects or price levels.
Financial Trend Analysis
The financial trend for Trident Ltd is negative as of today. The stock has delivered a 9.46% loss over the past year, underperforming the broader BSE500 index across multiple time frames including the last three years, one year, and three months. Recent quarterly results show a sharp decline in profitability, with PAT dropping significantly and interest expenses rising by 48.59% in the latest six months to ₹50.43 crores. This combination of rising costs and shrinking profits points to deteriorating financial health and operational challenges that weigh on investor confidence.
Technical Outlook
Technically, the stock exhibits a mildly bullish grade, suggesting some short-term positive momentum despite the broader fundamental concerns. Over the past month, the stock has gained 3.48%, although this is offset by declines over longer periods such as three months (-10.64%) and six months (-11.72%). The one-day and one-week changes of -1.47% and -4.34% respectively indicate recent volatility. While technical indicators may offer some near-term support, they do not currently outweigh the negative fundamental and financial trends.
Stock Performance Summary
As of 23 February 2026, Trident Ltd’s stock performance reflects the challenges highlighted by its fundamentals. The stock’s year-to-date return is -4.56%, and it has experienced a cumulative decline of 9.46% over the last twelve months. This underperformance relative to benchmark indices and sector peers underscores the cautious stance embedded in the 'Sell' rating.
Investor Considerations
For investors, the current 'Sell' rating suggests prudence in holding or acquiring Trident Ltd shares. The below-average quality, negative financial trends, and fair valuation imply that the stock may face continued headwinds. While the mildly bullish technical signals could offer short-term trading opportunities, the overall outlook advises a defensive approach. Investors should closely monitor upcoming quarterly results and any strategic initiatives by the company that could improve profitability and operational efficiency.
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Conclusion
Trident Ltd’s current 'Sell' rating by MarketsMOJO, last updated on 11 August 2025, reflects a comprehensive evaluation of the company’s present-day fundamentals and market performance as of 23 February 2026. The combination of below-average quality, fair valuation, negative financial trends, and only mildly bullish technicals suggests that the stock faces significant challenges ahead. Investors should approach the stock with caution, considering the risks highlighted by the latest data and the company’s recent underperformance relative to market benchmarks.
Company Profile Snapshot
Trident Ltd operates within the garments and apparels sector and is classified as a smallcap company. Despite its size, the company has struggled to generate robust growth and maintain investor confidence, as reflected in its current market metrics and institutional ownership patterns.
Market Sentiment and Outlook
Given the current market environment and Trident Ltd’s financial trajectory, the 'Sell' rating serves as a cautionary signal for investors. It emphasises the need for careful analysis and consideration of alternative investment opportunities with stronger fundamentals and more favourable growth prospects.
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