Sunday, March 28, 2021

Trident Ltd : Outlook Turned Positive on Financial Strength and Business Growth

Trident Ltd  closes   at ₹13.70   with  a  Fall  of   -0.60%   on    26-March-2021  with formation of  a  Red  Candle    on Daily  Price Chart.

About the Company : Trident Limited, the flagship company of the Trident Group, is a leading manufacturer of yarn, Bath Linen, Bed Linen and wheat straw-based paper, Chemicals and Captive Power. Currently, the company has manufacturing facilities in Barnala (Punjab) and Budhni (Madhya Pradesh).

 Sector Update : Healthy over the medium term

Strength :  1. Diversified revenue with leading market position in the home textiles segment, and established position in WPP(writing and printing (WPP) paper.2. Strong operating efficiency driven by integration of operations 3. Strong financial risk profile

Weaknesses : 1. Exposure to volatility in cotton prices and rupee 2. Working capital-intensive operations 3. Susceptibility to slowdown in the end-user market and to competition in the home textiles segment

Financials : Trident Ltd  has posted Net Sales / Revenue   of ₹4738.00 Cr & Net Profit of ₹340.00 Cr in FY2020 and expected to post Net Sales / Revenue   of ₹4550.00 Cr & Net Profit  of ₹340.00Cr in FY2021 and Net Sales / Revenue   of ₹5660.00Cr & Net Profit of ₹520.00 Cr in FY2022  and Net Sales / Revenue   of ₹6400.00 Cr & Net Profit of ₹670.00Cr in FY2023.

 Valuations  : The Company is now Trading at X 2.70 of its  valuations ( last 4Quaters earnings considered here) with ~170% Premium  and at X1.26 of its FY 2021, which is now almost  ~26%  Premium to its value and  X 0.82 of its FY 2022 earning with a Discount  of ~18% and X0.64 of its FY2023 earning with ~36%  Discount to its valuations.

Margin of Safety (1Yr Bond Yield: Value>1 ) is now 0.6, which  makes is attractive after ~40% decline in CMP. The  Equity Value Per Share ( Enterprise Value Method ) is  ₹13.00.

Why We are Running behind Trident Ltd : The aggregate revenues are expected to grow by ~15% p.a. as against CAGR (compounded annual growth rate) of ~2% during fiscal 2018 to 2020, led by continued traction in home textiles and cotton yarn as well as recovery in the paper segment as well as commissioning of planned capacity addition.

If We factor its earnings/valuations, its Price arrives at 57.90 with consideration FY2023 earnings.

 Disclaimer : We are / may going to take exposure shortly.

Join Us at   Telegram #   https://t.me/TheNiftyNext

Data Source | NSE Website | Screener.In  | Capital Line | Money Control |

The author tracks economic, behavioural and corporate tends, hoping to gauge good avenues of return based on Fundamental Valuations of Stocks, a follower of EPV method. You can reach me/us at | Twitter # NiftyNext1 |  e-Mail : Mail@NiftyNext.Com  |  Tel +91 8802230836  |  Telegram # TheNiftyNext   |

 


No comments:

Post a Comment

Thanks for Your Valuable comments. It will make Us to Serve You in Better Way. For Any STOCKS Query ,Please Call NiftyNext +91 880 2230 836.

Subscribe to: Post Comments (Atom)

Disclaimer

The recommendations made herein do not constitute an offer to sell or a solicitation to buy any of the securities mentioned. No representations can be made that the recommendations contained herein will be profitable or that they will not result in losses. Readers using the information contained herein are solely responsible for their actions. Information is obtained from sources deemed to be reliable but is not guaranteed as to accuracy and completeness. The above recommendations are based on the theory of Technical Analysis and do not reflect the fundamental validity of the Scrip. www.niftynext..com does 't take any Responsibility for any losses arising from using the Stocks Recommendations.
We( WWW.NIFTYNEXT.COM) are not Registered with Any Regulatory Body in India ie SEBI,NSE,BSE,AMFI or Any Otheres.

Blog Archive