Trident Group vs KPR Mill: From ancient times, India has been known for its fine craftsmanship. One such industry which has flourished over the last few decades is the apparel industry. And one of the products which are very essential for the industry is Textile.
In this article on Trident Group vs KPR Mill, we will take a look at two of the biggest textile companies in India. Keep reading to dive deeper into their financials!
Table of Contents
Industry Overview
The Indian textile industry is among the oldest industries in the country dating back several centuries. In fact India is the second-largest producer and exporter of textiles as well as the fourth-largest producer and exporter of apparel.
The Superior quality makes companies in India export leaders. Almost two-thirds of India’s export of textiles is to the US and UK. This is because of the fact that the country enjoys a comparative advantage in terms of skilled manpower and Abundant availability of raw materials such as cotton, wool, silk and jute.
The government of India has also taken many initiatives to strengthen the segment further. Technology Upgradation Fund Scheme (TUFS) S is the flagship scheme of the Ministry of Textiles to facilitate technology modernization and upgradation of textile mills.
The global textile market was estimated at USD 594.1 billion in 2020. With companies rearranging their operations and recovering from the COVID-19 impact, the market is expected to reach USD 654.7 billion in 2021 and grow at 6 per cent CAGR to reach USD 821.7 billion by 2025.
About the company
Trident Ltd
Established in the year 1990, Trident Limited is a part of the USD 1 billion Trident Group. Trident Limited is a leading manufacturer of Yarn Bath Linen Bed Linen Wheat Straw-based Paper Chemicals and Captive Power. The company is also one of the largest exporters of Home Textile Products. The products of the company are sold in more than 100 countries across the globe.
KPR Mill Ltd
KPR Mill Limited (formerly known as KPR Cotton Mills Pvt. Ltd.) was originally incorporated in 2003. Today the company is one of the largest vertically integrated apparel manufacturing companies in India producing yarn cotton knitted fabric readymade garments and wind power. The company exports to over 60 countries, its major export destinations being UK, China, Australia and USA.
Trident Group vs KPR Mill – Financial Comparison
Let us have a look at the financials of both companies
Trident Group vs KPR Mill – Revenue & Net profit
The Revenue for both the companies have been rising in the last two years. In the latest financial year, Trident has a higher revenue at Rs 6,997 Cr compared to KPR Mill which has Rs 4,822 Cr.
The net profit of both the companies have also been rising in the last two years. Despite having a higher revenue, Trident ltd has lesser net profit as compared to KPR Mill. In fact, KPR Mill has consecutively earned higher revenue in the last three years.
| Revenue & Net Profit (Rs in Cr) | |||||
|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | |
| Revenue | |||||
| Trident | 4,559 | 5,248 | 4,727 | 4,530 | 6,997 |
| KPR Mill | 3,024 | 3,384 | 3,352 | 3,530 | 4,822 |
| Net Profit | |||||
| Trident | 265 | 371 | 343 | 303 | 833 |
| KPR Mill | 290 | 334 | 376 | 515 | 841 |
Trident Group vs KPR Mill – How much have the investors earned?
The Return on Equity ratio shows the efficiency with which the company is able to generate profits. KPR Mill has seen consistent growth in the last five years. On the other hand, Trident has seen exponential growth in FY22.
The ROCE metric considers both Debt and Equity in relation to the net income earned by the company. In the last two years, KPR Mill has seen an uptrend in the ratio. Trident saw an exponential rise in its ROCE as well. This is mainly due to the multifold increase in its profits.
The earnings per share of KPR Mills is higher than the earnings per share of Trident.
| Return ratios | |||||
|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | |
| Return On Equity (ROE) | |||||
| Trident | 9.76 | 12.5 | 11.24 | 9.14 | 21.68 |
| KPR Mill | 18.49 | 18.7 | 20.18 | 21.92 | 26.41 |
| Return On Capital Employed (ROCE) | |||||
| Trident | 11.37 | 15.42 | 13.12 | 12.77 | 26.79 |
| KPR Mill | 25.25 | 26.26 | 24.51 | 28 | 29.95 |
| Earnings Per Share (EPS) | |||||
| Trident | 5.35 | 7.47 | 0.68 | 0.61 | 1.67 |
| KPR Mill | 39.3 | 46.12 | 52.9 | 74.88 | 24.27 |
Trident Group vs KPR Mill – What does the company’s valuation look like?
The sectoral PE for both companies is 11.43. Both the companies have a ratio which is higher than the industry average. This means that both companies are overvalued. However, in comparison, Trident has a higher ratio than KPR Mills.
The P/B ratio measures the market’s valuation of a company relative to its book value. A lower ratio is considered ideal. KPR Mills has a lower ratio of 6.73 compared to Trident with a ratio of 7.04.
The EV/EBITDA ratio is used as a valuation tool to compare the value of a company to its cash earnings. A lower ratio is considered to be ideal. In the given case, KPR Mill has a lower ratio than Trident.
| Valuation Parameter | |||||
|---|---|---|---|---|---|
| 2018 | 2019 | 2020 | 2021 | 2022 | |
| Price to Earnings Ratio (PE) | |||||
| Trident | 1.11 | 0.96 | 6.25 | 23.03 | 31.95 |
| KPR Mill | 3.22 | 2.5 | 1.28 | 2.85 | 25.44 |
| Price to Book Value (P/B) | |||||
| Trident | 1.08 | 1.2 | 0.7 | 2.15 | 7.04 |
| KPR Mill | 2.98 | 2.33 | 1.25 | 3.12 | 6.73 |
| EV/EBITDA | |||||
| Trident | 5.81 | 5.47 | 3.88 | 10.17 | 18.48 |
| KPR Mill | 8.94 | 7.57 | 4.43 | 9.05 | 17.23 |
Trident Group vs KPR Mill – Share price movement
In the last five years, the share price of Trident has risen from Rs 7 to Rs 38 giving a return of more than 417%. On a yearly basis, the stock has scaled by 130%. The stocks of Trident Ltd are trading around 38 levels as on 28th June 2022.
In the last five years, the share price of KPR Mill Ltd has risen from Rs 160 to Rs 514 giving a return of more than 219%. On a yearly basis, the stock has scaled by 67.93% The stocks of KPR Mill Ltd are trading around 514 levels as on 28th June 2022.
Trident Group vs KPR Mill – Shareholding pattern in the company
Trident Group vs KPR Mill – Future Prospects Of The Company
Trident Ltd
The textile company has undertaken CAPEX projects for setting up an additional yarn manufacturing unit which is currently at an advanced stage of completion. Further, the Company is likely to leverage IPRs for value creation. Apart from this, the company is also focused on developing methods through which it can increase its sales volumes.
KPR Mill Ltd
The company has been focusing on improving its digital capabilities. For that, it has recently added a vortex machine which produces various blends and a range of value-added viscose yarn that creates a new wave of old fashion. Apart from this, the company is also installing advanced knitting facilities to add value to the production facilities.
In closing
In this article on Trident Group vs KPR Mill, we looked at two of the biggest players in the textile industry in India. Both the companies are giving neck-to-neck competition with each other. Moving forward, the leadership will be decided by the strategies that will be adopted by the companies. That’s all for this post. Happy Investing!
Have you invested in either of the companies? Let us know in the comments below!
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