- It had reached a high of ₹68 apiece and currently, it is trading at ₹53.05, down by 21.98%.
- Brokerage firm Motilal Oswal is bullish on this share and believes that it can hit a target of 73 per share as per a research report dated January 20, 2022.
- The management has undertaken several initiatives to reduce its debt commitments and reduce its CTC cycle. It is building up cash reserves.
Trident Limited’s stock fell by more than 20% in a month amid the Russia-Ukraine crisis and sell-off by foreign investors. In January 2022, it had reached a high of ₹68 apiece and currently, it is trading at ₹53.05, down by 21.98%.
Market regulator SEBI has added Trident Ltd. to ASM Stage 4 (Additional Surveillance Measure) Category. ASM measures are based on price, volatility, volume variation and more.
This means that its settlement will be on a gross approach with all customers paying a 100% margin and a 5% price range. This means that intraday leverage is not given to control the price movements.
The company reported strong quarterly results for Q3FY22. The demand in the home textiles and paper segments has increased with the easing of pandemic woes. It is expected that exports will increase this year and the demand for its goods will increase in general.
Brokerage firm Motilal Oswal is bullish on this share and believes that it can hit a target of 73 per share as per a research report dated January 20, 2022.
“Trident (TRID) reported a strong performance in the Home Textile and Paper segments, driven by robust demand with the easing of pandemic woes. The demand trend in Home Textile is expected to continue, with major export demand bouncing back in FY22E. We value TRID at 25x FY24E EPS to arrive at our TP of INR73. We maintain our Buy rating,” it said in its report.
The management has undertaken several initiatives to reduce its debt commitments and reduce its CTC cycle. It is building up cash reserves. Trident limited’s net debt is ₹9.29b as it has cash reserves of ₹3.98b against total debt of ₹13.3b.
Its net debt is 0.67 times its EBITDA and it has a market capitalization of ₹299.3b. Experts believe that its liabilities do not pose a big threat given its market capitalization. However, it is important to keep a close watch on its balance sheet.
It is impressive that Trident grew its EBIT by 168% in a little over twelve months. This will make it easier to repay its debt, as its free cash flow is worth 70% of its EBIT.
