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The shares of Trident Ltd opened at Rs 35.50 per share on Wednesday as against the previous close of Rs 39.75. In the past five days, the stock has dipped by 5.5%. So far this year in 2022, the stock has lost approximately 29%. 

The stock was trading at Rs 19.95 a piece a year ago in August 2021. Since then it has climbed up to the current levels representing a return of 90%. In the last five years, the stock has delivered a multibagger return of 404%. 

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The stock reached its 52-week high of Rs 70.35 in January this year. It is currently trading at a 44% discount from its high. 

The stock moved the most mainly because of two reasons. 

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The first reason is the quarterly results of the company. The Revenue from operations jumped 13.32% to Rs 1,679.9 crore in the quarter ended June 2022 from Rs 1,482.38 crore which it earned in the same period a year earlier. 

Their net profit, however, dropped by 37.45% to Rs 129.35 crore in the quarter under review as against Rs 206.81 crore recorded in Q1 FY22. 

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The second reason for the movement is the exclusion of the stock from the Additional Surveillance Measure (ASM) list. The stock was earlier in Stage I on the list. 

ASM list is recognized by SEBI and stock exchanges with an intent to control speculative trading and protect retail investors’ interests and shield them from risky trading circumstances. 

Now the upper price band limit and the lower price band limit of the stock have been set as 20%. The price bands serve as boundaries for the stock’s trading i.e, the exchange will not accept orders that are set outside the minimum and the maximum of the price range. 

Trident Limited, the flagship company of the Trident Group, is a leading manufacturer of yarn, Bath Linen, Bed Linen, wheat straw-based paper, Chemicals, and Captive Power. The market capitalization of the company is Rs 19,313 crores. 

Management Changes

Its founder and chairman- Rajinder Gupta expressed his intention to step down as director and non-executive chairman of the company on Tuesday. “After devoting over three decades at Trident, I requested the board of directors to relieve me and support to prioritize my overall health and wellbeing. My family will also be with me to rebuild my physical and emotional well-being,” said Gupta.

Future plans of the company

Trident has allocated Rs. 1,377 crores towards capital expenditure for growing yarn, sheeting, and power generation. Its capacity expansion plans are expected to be completed by September 2023. This will help the company to meet the growing demand in India and capture a larger market share globally. 

Written by – Anoushka Roy

Disclaimer

The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

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