Trident Texofab Ltd Falls 22.55%: 5 Key Factors Driving the Sharp Downtrend

9 February 2026: Death Cross Formation Signals Bearish Momentum

Trident Texofab Ltd’s week began with a significant technical development as the stock formed a Death Cross, where the 50-day moving average crossed below the 200-day moving average. This indicator is widely regarded as a harbinger of prolonged bearish trends. The stock closed at Rs.153.40, down 4.99% on the day, sharply underperforming the Sensex which rose 1.04% to 37,113.23. The Death Cross reflected deteriorating momentum and foreshadowed the steep declines that followed.

10 February 2026: Stock Hits 52-Week Low at Rs.145.75

On 10 February, the stock continued its downward spiral, hitting a fresh 52-week low of Rs.145.75, a 4.99% drop from the previous close. This marked the 16th consecutive trading day of losses, cumulatively eroding nearly 47% of its value. The broader market remained positive, with the Sensex gaining 0.25% to 37,207.34, underscoring the stock’s relative weakness. Despite positive quarterly earnings trends, concerns over high leverage and modest returns on capital weighed heavily on investor sentiment.

11 February 2026: Continued Decline to Rs.138.50 Amid Bearish Technicals

The downtrend persisted on 11 February as the stock fell further to Rs.138.50, marking yet another 52-week low and a 4.97% daily loss. This extended the losing streak to 17 sessions, with a cumulative decline of 49.34%. The Sensex was nearly flat, down 0.08%, highlighting the stock’s underperformance. Technical indicators showed the stock trading below all key moving averages, reinforcing the bearish momentum. Despite consistent quarterly profitability improvements, the market remained unconvinced.

12 February 2026: New 52-Week Low at Rs.131.60 Amidst Market Pressure

On 12 February, Trident Texofab Ltd’s share price dropped to Rs.131.60, a 4.98% decline and a fresh 52-week low. The stock had now declined for 18 consecutive sessions, losing 51.87% in that span. The broader market showed resilience, with the Sensex down only 0.56%. The stock’s valuation shifted from expensive to fair, but elevated leverage and a high PEG ratio continued to weigh on sentiment. Operationally, the company reported its lowest quarterly sales in recent years, signalling challenges in revenue growth.

13 February 2026: Week Closes at Rs.125.05, Marking 19th Consecutive Loss

The week ended with the stock closing at Rs.125.05, down 4.98% on the day and establishing yet another 52-week low. This marked 19 consecutive losing sessions and a total decline of 54.26% during this streak. The Garments & Apparels sector outperformed the stock by 5.48% on the day, while the Sensex declined 0.92%. Quarterly results revealed flat revenue growth with net sales at Rs.25.74 crores, the lowest in recent years, though profit after tax for the nine-month period rose modestly to Rs.2.80 crores. The MarketsMOJO rating was downgraded to Strong Sell with a Mojo Score of 20.0, reflecting the deteriorated outlook.

Key Takeaways

Bearish Technicals Dominate: The formation of the Death Cross on 9 February marked a clear shift to a bearish trend, confirmed by the stock trading below all major moving averages throughout the week.

Consistent 52-Week Lows: The stock hit new 52-week lows on four consecutive trading days, signalling sustained selling pressure and weak investor confidence.

Fundamental Challenges: Despite four consecutive quarters of positive profitability, the company’s modest ROCE of 6.88% and high Debt to EBITDA ratio of 6.83 times highlight financial constraints.

Valuation Adjustments: The stock’s valuation shifted from expensive to fair, yet the high PEG ratio above 7 indicates market scepticism about growth sustainability.

Underperformance vs Market: The stock’s 22.55% weekly decline starkly contrasts with the Sensex’s 0.54% fall, underscoring relative weakness within the broader market.

Market Sentiment and Ratings: The downgrade to a Strong Sell rating and a low Mojo Score of 20.0 reflect heightened risk and caution among investors and analysts.

Sectoral Headwinds: Challenges in the Garments & Apparels sector, including supply chain issues and fluctuating raw material costs, have compounded company-specific difficulties.

Conclusion

Trident Texofab Ltd’s week was characterised by a sharp and sustained decline in share price, driven by bearish technical signals, weak financial metrics, and a challenging sector environment. The stock’s consistent underperformance relative to the Sensex and its peers, coupled with a downgrade to Strong Sell, signals a cautious outlook. While the company has demonstrated operational profitability, the disconnect between earnings and market valuation, alongside elevated leverage, has weighed heavily on investor sentiment. The coming weeks will be critical in assessing whether the company can stabilise its revenue base and regain market confidence amid ongoing headwinds.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →