Trent has an ROCE of 22%.That’s a fantastic return and not only that, it outpaces the average of 17% earned by companies in a similar industry. The trends I’ve noticed at Trent are quite reassuring. The data shows that returns on capital have increased substantially over the last five years to 22%. Basically the business is earning more per rupee of capital invested and in addition to that, 183% more capital is being employed now too. So I am very much inspired by what we’re seeing at Trent thanks to its ability to profitably reinvest capital.n summary, it’s great to see that Trent can compound returns by consistently reinvesting capital at increasing rates of return, because these are some of the key ingredients of those highly sought after multi-baggers. And a remarkable 1,105% total return over the last five years tells us that investors are expecting more good things to come in the future. So given the stock has proven it has promising trends, it’s worth researching the company further to see if these trends are likely to persist. However my worry is that TRENT has a high level of non-cash earnings.
Disclosure-I am invested for more than 20 years and my levels of buying were very low, levels, made a mistake of selling 500 shares @ 600 during covid and recovered my capital. This stock has become a Major portion of my portfolio 60%+ and that is my big worry. Suggestions on trimming down are welcome as I am in a dilemma.
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