The shares of textile manufacturer Trident Ltd. were down 0.65% for the day as of 12:35 IST and were trading at ₹ 38.10 per share. Trident is a diversified mid-cap company with interests in home textiles, paper, energy, FMCG and chemical industries. Its bed & bath linen and yarn business contribute majorly to the revenue. It presently has a market cap of ₹ 19,441 crores and has a global presence.
The stock of the Punjab-based conglomerate has given multi-bagger returns of 134% in the last twelve months. As of Thursday, the RSI indicator for the stock was hovering near 35 points which indicates it is still near its oversold zone.
For the March quarter ended 2022, its total income rose 37% to ₹ 1,853 crores from ₹ 1,353 crores reported in the same period last year. Supported by exceptional items, the profit after tax increased 129.5% to ₹ 174 crores from ₹ 76 crores in Q4 year-on-year basis.
On a quarter-on-quarter basis, its EBITDA margin shrank 270 basis points from 20.7% in Q3FY22 to 18.0% in Q4FY22 while exports as a percentage of revenue declined from 71% to 57%.
The company plans to raise ₹ 1,100 crores through non-convertible debentures and the issuance of equity shares in tranches.
For the fiscal year ended 2022, its net debt to equity ratio stood at 0.34. The company has an interest coverage ratio of 17.62.
Analysts at Motilal Oswal have given a buy call on the stock for a target price of ₹ 50 per share. This results in an upside of 29% for the stock.
Promoters have a 73% stake in the company, followed by public and non-public non-promoters who hold 25% and 2% respectively.
Written by Vikalp Mishra
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