Trident Texofab Ltd Valuation Shifts to Fair Amidst Market Pressure

Valuation Metrics and Market Context

As of 11 Feb 2026, Trident Texofab’s stock closed at ₹145.75, down 4.99% from the previous close of ₹153.40. The stock has hit its 52-week low at this price, significantly below its 52-week high of ₹379.00, underscoring the steep correction it has undergone over the past year. This decline is stark when compared to the broader market, with the Sensex delivering a positive 9.01% return over the last year, while Trident Texofab’s stock has fallen 13.04% in the same period.

The company’s valuation grade has recently been downgraded from “Expensive” to “Fair,” reflecting a recalibration of its price multiples in light of market realities. The current P/E ratio stands at 73.76, which, while still elevated, is lower than some of its more expensive peers such as Indiabulls (86.9) and Cropster Agro (94.09). The price-to-book value ratio is 3.84, indicating that the stock is trading at nearly four times its book value, a figure that is high but more reasonable compared to riskier or very expensive peers.

Comparative Peer Analysis

Within the Garments & Apparels sector, Trident Texofab’s valuation metrics place it in a middling position. For instance, India Motor Part is considered “Very Attractive” with a P/E of 17.15 and a P/BV significantly lower than Trident Texofab’s, while Creative Newtech is rated “Attractive” with a P/E of 15.81 and a P/BV close to 1.5. On the other hand, companies like A-1 and MIC Electronics exhibit extremely high P/E ratios (494.82 and 108.47 respectively), signalling overvaluation or speculative pricing.

Trident Texofab’s EV to EBITDA ratio of 30.40 also suggests a premium valuation relative to some peers, but it is notably less stretched than companies like Aayush Art, which has an EV to EBITDA exceeding 696. This indicates that while Trident Texofab remains on the pricier side, it is not in the realm of speculative excess.

Financial Performance and Returns

Trident Texofab’s return metrics over various time horizons reveal a mixed picture. The stock has underperformed the Sensex significantly over the short and medium term, with a 1-month return of -44.21% versus Sensex’s 0.83%, and a year-to-date return of -37.74% compared to Sensex’s -1.11%. However, over longer periods, the company has delivered impressive gains, with a 5-year return of 502.27% far outpacing the Sensex’s 64.25%, and a 3-year return of 75.18% versus the Sensex’s 38.88%. This suggests that while recent performance has been weak, the company has historically rewarded patient investors.

Profitability metrics remain subdued, with the latest return on capital employed (ROCE) at 7.44% and return on equity (ROE) at 5.20%. These figures are modest and indicate that the company’s efficiency in generating returns from its capital base is limited, which may partly explain the high valuation multiples despite tepid profitability.

Valuation Grade and Market Sentiment

The company’s Mojo Score currently stands at 26.0, with a Mojo Grade of “Strong Sell,” downgraded from “Sell” on 3 Feb 2026. This reflects a cautious stance from analysts, likely driven by the stock’s recent price weakness and the challenging operating environment in the Garments & Apparels sector. The Market Cap Grade is 4, indicating a relatively small market capitalisation, which can contribute to higher volatility and risk.

Despite the downgrade, the shift from “Expensive” to “Fair” valuation suggests that the stock may be approaching a more reasonable price level, potentially offering value for investors willing to tolerate near-term volatility. The PEG ratio of 8.00 remains elevated, signalling that earnings growth expectations are not strongly aligned with the current price, which warrants careful consideration.

Outlook and Investor Considerations

Investors analysing Trident Texofab must weigh the company’s attractive valuation shift against its subdued profitability and recent share price underperformance. The stock’s current P/E of 73.76, while lower than some peers, remains high relative to the broader market and historical averages for the sector. This suggests that the market continues to price in growth expectations that may be challenging to meet given the company’s current ROCE and ROE levels.

Moreover, the stock’s recent sharp declines and low liquidity implied by its market cap grade of 4 introduce additional risk factors. However, the long-term return history indicates that the company has the potential to reward investors who can endure short-term volatility.

In summary, Trident Texofab’s valuation adjustment to a fair grade signals a potential entry point for value-oriented investors, but caution is advised given the company’s financial metrics and sector headwinds. A thorough analysis of earnings prospects and competitive positioning within the Garments & Apparels industry remains essential before committing capital.

Comparative Valuation Snapshot

To contextualise Trident Texofab’s valuation, consider the following peer comparisons:

• Indiabulls: P/E 86.9, EV/EBITDA 23.03, PEG 0.83 – Very Expensive
• Aayush Art: P/E 943.35, EV/EBITDA 696.61, PEG 3.24 – Risky
• India Motor Part: P/E 17.15, EV/EBITDA 21.71, PEG 1.42 – Very Attractive
• Creative Newtech: P/E 15.81, EV/EBITDA 15.7, PEG 3.77 – Attractive
• Aeroflex Enter.: P/E 18.76, EV/EBITDA 8.01, PEG 2.47 – Very Attractive

These figures highlight that while Trident Texofab’s valuation is no longer in the “Very Expensive” category, it still commands a premium relative to some more attractively priced peers with stronger profitability metrics.

Final Assessment

Trident Texofab Ltd’s recent valuation grade change from expensive to fair reflects a market recalibration amid price declines and sector challenges. The company’s elevated P/E and P/BV ratios, combined with modest returns on capital, suggest that investors should approach with caution. Nonetheless, the valuation adjustment may offer a window of opportunity for those seeking exposure to the Garments & Apparels sector at a more reasonable price point, provided they are comfortable with the associated risks and volatility.

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