WEBSITE BSE:531972 NSE: TRIDENTTOOL Inc. Year: 1982 Industry: Engineering - Industrial Equipments My Bucket: Add Stock
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1. Business Overview
Trident Tools Ltd. operates in the Engineering sector, specializing in Industrial Equipments. The company is primarily involved in the manufacturing, marketing, and distribution of various tools and equipment used across different industrial applications. This typically includes products such as cutting tools, machine tools, hand tools, power tools, and other specialized equipment essential for manufacturing, construction, automotive, aerospace, and general engineering industries. Its core business model revolves around Business-to-Business (B2B) sales to industrial clients. The company generates revenue through the sale of its products, potentially supplemented by revenue from spare parts, consumables, and after-sales service or maintenance contracts.
2. Key Segments / Revenue Mix
Without specific financial data, the exact revenue mix for Trident Tools Ltd. is not available. However, based on its industry, common segments for such a company might include:
Cutting Tools: Blades, drills, milling tools, etc.
Machine Tools: Lathes, CNC machines, grinding machines, etc.
Hand & Power Tools: Wrenches, pliers, hammers, electric drills, grinders.
Specialized Industrial Equipment: Tailored solutions for specific manufacturing processes or industries.
After-Sales Service & Spares: Revenue from maintenance, repairs, and sale of replacement parts.
The contribution from these segments would depend on the company's product focus and strategic priorities.
3. Industry & Positioning
The Indian Engineering - Industrial Equipments industry is characterized by a mix of domestic and international players. It is often fragmented, with competition ranging from large multinational corporations offering advanced technology to numerous small and medium-sized enterprises (SMEs) focusing on cost-effective solutions or niche products. Competition is typically based on product quality, precision, durability, pricing, after-sales support, technological innovation, and an established distribution network. Trident Tools Ltd.'s positioning within this industry would likely depend on its specific product portfolio, technological capabilities, regional market strength, and relationships with key industrial clients. It may position itself as a provider of reliable, cost-effective solutions or specialized tools for particular industrial applications.
4. Competitive Advantage (Moat)
Potential competitive advantages for Trident Tools Ltd. could include:
Brand Reputation & Quality: A long-standing reputation for producing durable and reliable tools can build trust and customer loyalty.
Product Specialization/Niche Expertise: Focus on specific types of tools or equipment where it has deep technical know-how or proprietary designs.
Distribution Network: An extensive and efficient distribution and service network across India, allowing for wider reach and better customer support.
Customer Relationships & Switching Costs: For complex industrial equipment, integration into customer production lines can create high switching costs due to training, re-tooling, and operational disruption.
Cost Efficiency: Ability to manufacture or source products at a competitive cost, allowing for attractive pricing.
However, without specific details, the durability and strength of these moats are subject to competitive pressures and technological advancements.
5. Growth Drivers
Key factors that can drive growth for Trident Tools Ltd. over the next 3-5 years include:
"Make in India" Initiative & Manufacturing Growth: Government push for domestic manufacturing and industrialization will increase demand for industrial tools and equipment.
Infrastructure Development: Ongoing and planned projects in construction, transportation, and energy sectors will drive demand for related machinery and tools.
Capital Expenditure Cycle: Revival or increase in capital expenditure by Indian industries across sectors.
Technological Upgrades & Automation: Modernization efforts by manufacturing units to adopt automation and advanced production techniques necessitate new and sophisticated tools.
Replacement Demand: The need to replace aging machinery and tools in existing industrial setups.
Export Opportunities: Leveraging competitive manufacturing capabilities to tap into international markets for industrial tools.
6. Risks
Trident Tools Ltd. faces several business risks:
Cyclicality of Capital Goods Demand: The industrial equipment sector is highly sensitive to economic cycles and capital expenditure trends of end-user industries.
Raw Material Price Volatility: Fluctuations in prices of key raw materials (e.g., steel, aluminum, specialized alloys) can impact manufacturing costs and profitability.
Intense Competition: Presence of both domestic and international players can lead to pricing pressures and challenges in market share retention.
Technological Obsolescence: Rapid advancements in manufacturing technology require continuous R&D investment to stay competitive.
Supply Chain Disruptions: Global or domestic events affecting supply chains can impact production and delivery schedules.
Working Capital Management: Effective management of inventory and receivables is crucial given potentially long sales cycles and large order sizes.
Currency Fluctuations: If the company relies on imported components or exports its products, currency volatility can impact profitability.
7. Management & Ownership
As an Indian-listed company (TRIDENTTOOL), Trident Tools Ltd. is typically promoter-led, meaning the founding family or group holds a significant ownership stake and plays a crucial role in management and strategic direction. Management quality is often reflected in long-term vision, operational efficiency, corporate governance standards, and the ability to adapt to industry changes. The ownership structure generally comprises promoter holdings, institutional investors (domestic and foreign), and public shareholders. The experience and expertise of the leadership team in the engineering and industrial equipment sector would be vital for steering the company's growth.
8. Outlook
The outlook for Trident Tools Ltd. presents a balanced view. On the positive side, India's broader economic growth trajectory, coupled with specific government initiatives to boost manufacturing and infrastructure, provides a conducive environment for the industrial equipment sector. Companies that can offer high-quality, technologically advanced, and cost-effective solutions, backed by strong distribution and service, are well-positioned to capitalize on this demand. However, the company operates in a competitive and cyclical industry. Challenges include managing raw material price volatility, keeping pace with technological advancements, and navigating intense domestic and international competition. The ability to innovate, diversify product offerings, expand market reach, and maintain operational efficiency will be critical determinants of its sustained growth and profitability.
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Market Cap ₹10 Cr.
Stock P/E -2.5
P/B -
Current Price ₹7.1
Book Value ₹ 0
Face Value 10
52W High ₹0
Dividend Yield 0%
52W Low ₹ 0
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
| #(Fig in Cr.) | Mar 2017 | Jun 2017 | Sep 2017 | Dec 2017 | Mar 2018 | Jun 2018 | Sep 2018 | Dec 2018 | Mar 2019 | Jun 2019 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 0 | 8 | 1 | 0 | -0 | 0 | 0 | 0 | 0 | 0 |
| Other Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Income | 0 | 8 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Expenditure | 1 | 7 | 1 | 1 | 1 | 0 | 0 | 0 | 0 | 1 |
| Operating Profit | -0 | 1 | -1 | -1 | -1 | -0 | -0 | -0 | -0 | -1 |
| Interest | 0 | 2 | 3 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Depreciation | 0 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | -0 | -1 | -4 | -1 | -2 | -1 | -1 | -1 | -1 | -1 |
| Provision for Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 0 |
| Profit After Tax | -0 | -1 | -4 | -1 | -2 | -1 | -1 | -2 | -1 | -1 |
| Adjustments | 0 | 1 | 4 | 1 | 2 | 1 | 1 | 2 | 1 | 1 |
| Profit After Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Adjusted Earnings Per Share | -0.3 | -0.8 | -3 | -1 | -1.5 | -0.6 | -0.5 | -1.1 | -0.7 | -0.9 |
| #(Fig in Cr.) | Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 20 | 37 | 49 | 63 | 55 | 19 | 12 | 8 | 0 | 0 |
| Other Income | 0 | 0 | 0 | 1 | 0 | 1 | 0 | 0 | 0 | 0 |
| Total Income | 21 | 37 | 50 | 64 | 55 | 19 | 13 | 8 | 0 | 0 |
| Total Expenditure | 18 | 32 | 42 | 53 | 58 | 24 | 28 | 9 | 1 | 1 |
| Operating Profit | 3 | 5 | 8 | 11 | -4 | -4 | -16 | -1 | -1 | -1 |
| Interest | 2 | 2 | 4 | 5 | 5 | 7 | 7 | 5 | 0 | 0 |
| Depreciation | 0 | 1 | 2 | 3 | 4 | 3 | 3 | 3 | 3 | 4 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 1 | 2 | 3 | 3 | -12 | -15 | -26 | -9 | -3 | -4 |
| Provision for Tax | 0 | 1 | 1 | 1 | 2 | 0 | -4 | 0 | 1 | 1 |
| Profit After Tax | 1 | 1 | 1 | 2 | -14 | -15 | -22 | -9 | -4 | -5 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5 |
| Profit After Adjustments | 1 | 1 | 1 | 2 | -14 | -15 | -22 | -9 | -4 | 0 |
| Adjusted Earnings Per Share | 1.8 | 1.1 | 1.9 | 1.1 | -9.8 | -10.4 | -15.7 | -6.5 | -2.8 | -3.2 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | -100% | -100% | -100% | 0% |
| Operating Profit CAGR | 0% | 0% | NAN% | 0% |
| PAT CAGR | 0% | 0% | NAN% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | 0% | 28% | 22% | -7% |
| ROE Average | 0% | 0% | -28% | -10% |
| ROCE Average | -9% | -17% | -14% | -2% |
| #(Fig in Cr.) | Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 |
|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 9 | 11 | 15 | 17 | 3 | -12 | -34 | -43 | -47 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Borrowings | 4 | 13 | 27 | 46 | 54 | 62 | 52 | 56 | 56 |
| Other Non-Current Liabilities | 0 | 1 | 2 | 2 | 8 | 8 | 0 | 0 | 0 |
| Total Current Liabilities | 15 | 18 | 18 | 28 | 34 | 32 | 49 | 43 | 44 |
| Total Liabilities | 29 | 43 | 63 | 94 | 98 | 90 | 67 | 57 | 53 |
| Fixed Assets | 6 | 10 | 36 | 34 | 61 | 60 | 56 | 53 | 50 |
| Other Non-Current Assets | 3 | 9 | 0 | 21 | 0 | 1 | 1 | 1 | 0 |
| Total Current Assets | 20 | 24 | 26 | 38 | 37 | 29 | 9 | 3 | 3 |
| Total Assets | 29 | 43 | 63 | 94 | 98 | 90 | 67 | 57 | 53 |
| #(Fig in Cr.) | Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 |
|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 0 | 0 | 1 | 1 | 1 | 1 | 0 | 0 | 0 |
| Cash Flow from Operating Activities | -1 | 1 | 6 | 3 | -0 | -1 | 16 | 0 | 0 |
| Cash Flow from Investing Activities | -3 | -11 | -19 | -22 | -10 | -2 | 0 | -0 | 0 |
| Cash Flow from Financing Activities | 4 | 10 | 12 | 20 | 9 | 3 | -16 | -0 | -0 |
| Net Cash Inflow / Outflow | -0 | 0 | -0 | 1 | -1 | 0 | 0 | -0 | -0 |
| Closing Cash & Cash Equivalent | 0 | 1 | 1 | 1 | 1 | 1 | 0 | 0 | 0 |
| # | Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | 1.79 | 1.14 | 1.87 | 1.13 | -9.79 | -10.44 | -15.66 | -6.47 | -2.83 |
| CEPS(Rs) | 2.23 | 2.04 | 4.32 | 3.15 | -7.28 | -8.01 | -13.25 | -4.12 | -1 |
| DPS(Rs) | 0.3 | 0.3 | 0.3 | 0 | 0 | 0 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 15.88 | 15.21 | 10.38 | 12.02 | 1.94 | -8.49 | -24.1 | -30.58 | -33.42 |
| Core EBITDA Margin(%) | 11.95 | 11.42 | 14.4 | 14.87 | -6.22 | -25.7 | -120.66 | -13.63 | 0 |
| EBIT Margin(%) | 12.09 | 9.97 | 11.91 | 11.47 | -12.32 | -39.63 | -145.07 | -50.6 | 0 |
| Pre Tax Margin(%) | 4.13 | 4.65 | 4.75 | 3.97 | -20.63 | -74.87 | -197 | -103.22 | 0 |
| PAT Margin (%) | 3.67 | 1.92 | 2.39 | 2.36 | -23.79 | -74.87 | -166.23 | -103.22 | 0 |
| Cash Profit Margin (%) | 4.56 | 3.43 | 5.52 | 6.6 | -17.68 | -57.43 | -140.63 | -65.76 | 0 |
| ROA(%) | 2.72 | 2.14 | 2.38 | 2.02 | -14.35 | -15.6 | -28.01 | -14.66 | -7.25 |
| ROE(%) | 11.8 | 8.94 | 14.66 | 13.26 | -140.26 | 0 | 0 | 0 | 0 |
| ROCE(%) | 13.22 | 13.91 | 14.28 | 11.61 | -9 | -10.08 | -31.05 | -10.32 | -8.82 |
| Receivable days | 125.42 | 43.68 | 38.36 | 41.23 | 48.52 | 98.04 | 91.19 | 45.81 | 0 |
| Inventory Days | 180.83 | 129.97 | 117.4 | 116.29 | 166.52 | 466.54 | 381.39 | 161.64 | 0 |
| Payable days | 217.99 | 68.06 | 54.04 | 60.85 | 70.64 | 202.14 | 110.18 | 390.24 | 0 |
| PER(x) | 6.49 | 20.18 | 8.56 | 22.17 | 0 | 0 | 0 | 0 | 0 |
| Price/Book(x) | 0.73 | 1.52 | 1.55 | 2.08 | 11.93 | -2.25 | -0.81 | -0.33 | 0 |
| Dividend Yield(%) | 2.59 | 1.3 | 1.87 | 0 | 0 | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | 0.92 | 1.06 | 0.98 | 1.52 | 1.98 | 6.03 | 8.8 | 11.66 | 0 |
| EV/Core EBITDA(x) | 6.66 | 8.45 | 6.11 | 9.14 | -30.15 | -25.95 | -6.95 | -81.69 | -170.89 |
| Net Sales Growth(%) | -12.22 | 81.05 | 34.08 | 28.26 | -13.58 | -65.84 | -33.15 | -35.11 | -100 |
| EBIT Growth(%) | 55.56 | 53.69 | 57.25 | 21.97 | -192.71 | -8.91 | -147.38 | 76.8 | 29.79 |
| PAT Growth(%) | 51.52 | -2.22 | 63.77 | 25.09 | -968.53 | -6.59 | -50.03 | 58.7 | 56.17 |
| EPS Growth(%) | 51.44 | -36 | 63.77 | -39.86 | -968.53 | -6.59 | -50.03 | 58.7 | 56.17 |
| Debt/Equity(x) | 1.97 | 2.34 | 5.46 | 3.69 | 27.96 | -7.27 | -2.44 | -1.87 | -1.71 |
| Current Ratio(x) | 1.3 | 1.34 | 1.43 | 1.35 | 1.09 | 0.92 | 0.19 | 0.07 | 0.06 |
| Quick Ratio(x) | 0.47 | 0.45 | 0.45 | 0.49 | 0.25 | 0.23 | 0.07 | 0.02 | 0.02 |
| Interest Cover(x) | 1.52 | 1.87 | 1.66 | 1.53 | -1.48 | -1.12 | -2.79 | -0.96 | -258.18 |
| Total Debt/Mcap(x) | 1.76 | 1.76 | 4.04 | 1.78 | 2.34 | 3.23 | 3.03 | 5.71 | 0 |
| # | Mar 2017 | Jun 2017 | Sep 2017 | Dec 2017 | Mar 2018 | Jun 2018 | Sep 2018 | Dec 2018 | Mar 2019 | Jun 2019 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 75 | 75 | 75 | 75 | 75 | 75 | 75 | 71.47 | 75 | 75 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 25 | 25 | 25 | 25 | 25 | 25 | 25 | 28.53 | 25 | 25 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Mar 2017 | Jun 2017 | Sep 2017 | Dec 2017 | Mar 2018 | Jun 2018 | Sep 2018 | Dec 2018 | Mar 2019 | Jun 2019 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 1.05 | 1.05 | 1.05 | 1.05 | 1.05 | 1.05 | 1.05 | 1 | 1.05 | 1.05 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 0.35 | 0.35 | 0.35 | 0.35 | 0.35 | 0.35 | 0.35 | 0.4 | 0.35 | 0.35 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 1.4 | 1.4 | 1.4 | 1.4 | 1.4 | 1.4 | 1.4 | 1.4 | 1.4 | 1.4 |
* The pros and cons are machine generated.
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