Multibagger Defence Software Company Bags New Order Worth Rs 71.73 Crore From Ministry Of Defence; Stock Trades At High ROE & High ROCE
In the last 12 months, the stock has given 14.97 per cent returns.
Trident Techlabs Limited has announced a significant milestone in its business operations with the receipt of a major domestic contract from the Ministry of Defence, DGRM, DRDO, New Delhi. The contract, valued at Rs 71.73 crore (including GST), includes a three-year maintenance agreement and is set to be executed within 90 days.
This order entails the delivery of a comprehensive Design Verification Tool covering multidisciplinary structural analysis for static, dynamic, and thermal loads in both linear and nonlinear domains. The project scope also extends to multibody dynamics simulations, acoustic and aero-acoustic problem-solving, and computational fluid dynamics (CFD) simulations. This development adds to Trident Techlabs’ growing portfolio in the defence and aerospace segments, and reflects its strength in high-end engineering solutions.
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Founded in 2000, Trident Techlabs operates through two core business verticals—Engineering Solutions and Power System Solutions. The former provides technical services for chip-level electronic design, embedded systems, electromagnetic simulations, and PCB design, while the latter supports power distribution utilities with solutions for smart grids, renewable energy integration, and infrastructure modernisation. The company currently employs over 100 engineers and professionals and has ambitious plans to become a Rs 1,000 crore enterprise in the next five years, including entry into emerging domains like cybersecurity and semiconductors.
On the financial front, Trident Techlabs has shown a sharp turnaround. In H1 FY24-25, the company reported revenue from operations of Rs 2,107.36 lakh, up from Rs 837.71 lakh in the same period of the previous fiscal. EBITDA stood at Rs 645.27 lakh, compared to a loss of Rs 146.22 lakh, while Profit After Tax came in at Rs 346.3 lakh versus a loss of Rs 309.37 lakh in H1 FY23-24. For FY24, the company clocked a revenue of Rs 73 crore with a net profit of Rs 9.3 crore.
The stock, currently priced at Rs 495, has seen a 2.00 per cent intraday decline. It commands a market capitalisation of Rs 855 crore, classifying it as a small-cap stock. Despite being far below its 52-week high of Rs 1,670, it remains above its 52-week low of Rs 388. The stock trades at 17.1 times its book value of Rs 29.0. While it does not currently offer a dividend, its Return on Capital Employed (ROCE) stands at 29.2 per cent and Return on Equity (ROE) at 31.0 per cent, with a three-year average ROE of 25.5 per cent—indicators of strong capital efficiency. In the last 12 months, the stock has given 14.97 per cent returns.
Disclaimer: The article is for informational purposes only and not investment advice.