The shares of Trident Limited gained 8.80% on Tuesday’s early trades to reach an intraday high of ₹ 34.60 apiece. Its shares were trading at ₹ 34.15 apiece, up 7.39% at 12:22 PM on the National Stock Exchange (NSE).
Trident’s revenue from operations decreased by 17.25% to ₹ 1641.44 crores in the October to December quarter of 2022 (Q3FY23), against ₹ 1983.65 crores in the same quarter last year. However, it increased by 13.75% quarter on quarter (from the July to September quarter of 2022 to the October to December quarter of 2022).
The company’s profit after tax (PAT) decreased by 31.68% year on year (YoY) to ₹ 144.21 crores in Q3FY23 from ₹ 211.09 crores. However, it increased by a whopping 285.69% QoQ, from ₹ 37.39 crores in the July to September quarter of 2022.
Trident has given multibagger returns of 136.21% in the past two years. Therefore if an investor would have invested ₹ 1 lakh in the company’s shares two years ago, the value of their holdings would have been ₹2.36 lakhs today!
The company has a market capitalization of ₹ 15,920 crores and is a mid cap company. It has an ideal return on equity of 23.25% and an ideal debt-to-equity ratio of 0.31. Its shares were trading at a price-to-earnings ratio (P/E) of 28.69, which is significantly lower than the industry P/E of 60.65, indicating that it is undervalued as compared to its peers. It has a dividend yield of 1.70%
Trident is the flagship company of the Trident Group and is a leading manufacturer of yarn, linen, wheat straw-based paper, chemicals and captive power.
Written by Simran Bafna
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