Trident Ltd Valuation Shifts to Fair Amid Mixed Market Performance

Valuation Metrics: A Closer Look at Trident’s Current Standing

As of 10 Feb 2026, Trident Ltd’s P/E ratio stands at 32.56, a figure that signals a premium relative to its historical averages and many of its garment industry peers. This marks a shift from previously more attractive valuation levels, where the company’s P/E was comparatively lower, offering better price appeal. The P/BV ratio has similarly increased to 3.13, indicating that the stock is now trading at over three times its book value, a level that suggests investors are pricing in growth expectations but also reducing margin of safety.

Other valuation multiples such as EV to EBIT (25.52) and EV to EBITDA (16.05) further underline the company’s elevated valuation status. While these multiples are not extreme within the sector, they do reflect a tightening of valuation comfort zones for investors who had previously favoured Trident for its more moderate multiples.

Peer Comparison Highlights Valuation Shifts

When benchmarked against key competitors in the Garments & Apparels sector, Trident’s valuation appears less compelling. For instance, Arvind Ltd is rated as very attractive with a P/E of 24.01 and EV to EBITDA of 12.24, offering a more reasonable entry point for value-conscious investors. Conversely, Pearl Global Industries, with a P/E of 31.93 and EV to EBITDA of 18.92, is considered expensive, placing Trident in a middle ground but closer to the expensive side.

Other peers such as Vardhman Textile and Indo Count Industries also maintain fair valuation grades with P/E ratios of 18.36 and 37.33 respectively, illustrating the wide valuation spectrum within the sector. Notably, companies like Swan Corp and Alok Industries are classified as risky due to loss-making status, which contrasts with Trident’s stable profitability metrics.

Financial Performance and Quality Metrics

Trident’s return on capital employed (ROCE) is currently 10.73%, while return on equity (ROE) stands at 9.61%. These figures, while positive, are modest and may not fully justify the elevated valuation multiples. The PEG ratio of 0.86 suggests that the stock’s price growth is somewhat aligned with earnings growth, but the margin is narrow, indicating limited upside from a valuation perspective.

Dividend yield data is not available, which may be a consideration for income-focused investors. The company’s market cap grade remains low at 3, reflecting its mid-tier size within the sector and possibly contributing to valuation pressures.

Stock Price and Market Performance

Trident’s stock price closed at ₹28.36 on 10 Feb 2026, up 2.46% from the previous close of ₹27.68. The stock has traded within a 52-week range of ₹23.20 to ₹34.60, indicating moderate volatility. Recent price action shows a positive trend with a 1-week return of 9.88%, significantly outperforming the Sensex’s 2.94% gain over the same period. The 1-month return of 8.12% also surpasses the Sensex’s 0.59%, while year-to-date returns are positive at 5.98% compared to the Sensex’s negative 1.36%.

However, longer-term returns paint a more mixed picture. Over one year, Trident’s stock has declined by 6.65%, underperforming the Sensex’s 7.97% gain. Over three years, the stock has fallen 11.65%, while the Sensex has risen 38.25%. Despite this, the 5-year and 10-year returns remain robust at 103.44% and 492.07% respectively, reflecting strong historical growth and compounding returns for long-term investors.

Mojo Score and Rating Update

MarketsMOJO’s latest assessment assigns Trident a Mojo Score of 31.0, categorising it as a Sell with a Mojo Grade of Sell. This represents a downgrade from the previous Hold rating issued on 11 Aug 2025. The downgrade reflects the shift in valuation from attractive to fair, combined with the company’s middling financial metrics and competitive pressures within the sector.

The market cap grade of 3 further emphasises the company’s moderate size and liquidity profile, which may limit institutional interest and contribute to valuation challenges. Investors should weigh these factors carefully against the company’s growth prospects and sector dynamics.

Sector Outlook and Valuation Context

The Garments & Apparels sector continues to face a complex environment marked by fluctuating raw material costs, evolving consumer preferences, and global trade uncertainties. Within this context, valuation multiples have generally expanded for companies demonstrating consistent earnings growth and operational resilience.

Trident’s current valuation reflects a market expectation of steady performance but leaves limited room for error. Compared to peers like Arvind Ltd and Raymond Lifestyle, which are rated very attractive despite higher P/E ratios in some cases, Trident’s valuation appears less compelling given its lower ROE and ROCE metrics.

Investment Implications

For investors currently holding Trident Ltd, the shift in valuation parameters warrants a reassessment of portfolio positioning. The stock’s premium multiples relative to some peers, combined with modest returns on capital, suggest that upside potential may be constrained unless operational improvements or earnings acceleration materialise.

New investors should approach with caution, considering the fair valuation grade and the recent downgrade in Mojo rating. A thorough comparison with more attractively valued peers such as Arvind Ltd or Raymond Lifestyle may yield better risk-adjusted opportunities within the Garments & Apparels sector.

Long-term holders who have benefited from Trident’s impressive 5- and 10-year returns might consider trimming exposure to rebalance towards stocks with stronger current fundamentals and valuation appeal.

Conclusion

Trident Ltd’s transition from an attractive to a fair valuation grade reflects evolving market sentiment amid rising P/E and P/BV ratios and a competitive peer landscape. While the company maintains stable profitability and solid historical returns, its current multiples suggest limited margin for valuation expansion. Investors should carefully weigh these factors alongside sector trends and peer comparisons to make informed decisions.

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