Mehabe score: 3 G Factor: 5 Piotski Score: 7 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 7.
Description
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). #
Main Points
Products
Yarn (26% of Revenues): 100% cotton combed yarn, Slub yarn, Open-End yarn, Blended yarn, etc.
Home Textiles (54% of Revenues): It includes Bath and Bed linen. Some of the products are Comforters, Solid/ Printed Sheets, Decorative pillows, etc.Site:TRIDENTMain Symbol:TRIDENT
Stock trades at 20.6, above its 50dma 16.94. It also trades above its 200dma 13.73. The stock remains bullish on techicals
The 52 week high is at 19.70 and the 52week low is at 6.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– has been maintaining a healthy dividend payout of 51.08%
Weakness
– Stock is trading at 3.16 times its book value
-The company has delivered a poor sales growth of 4.33% over past five years.
– has a low return on equity of 11.48% for last 3 years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 25.0x. Garware Tech. trades at the industry’s max P/E of 45.01x. TRIDENT trades at a P/E of 32.0x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 8.0. TRIDENT has a G-Factor of 5 and Piotski scoreof 7.
– Average 1 month return for industry is 15.1%. The max 1- month return was given by Welspun India: a return of 37.72 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 1345.0 cr compared to Rs 991.0 cr for period ended Mar 2020, a rise of 35.7%
Operating Profits reported at Rs 237.0 cr for period ended Mar 2021 vis-vis 146.0 for period ended Mar 2020 .
Operating Margins expanded 288.8 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.15 compared to Rs 0.22 for previous quarter ended Dec 2020 and Rs 0.08 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 4531.0 cr for period ended Mar 2021 vis-vis sales of Rs 4728.0 cr for the period ended Mar 2020, a fall of 4.3%. The 3 year sales cagr stood at -0.2%.
Net Profit reported at Rs 304.0 cr for period ended Mar 2021 vis-vis sales of Rs 340.0 cr for the period ended Mar 2020, falling 11.8%.
Company recorded a Net Profit CAGR of 4.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 10.0% compared to 11.0% over the last 3 Years. – The stock has given a return of 208% on a 1 Year basis vis-vis a return of 52% over the last 3 Years. – The compounded sales growth on a TTM bassis is -4% vis-vis a compounded sales growth of -0% over the last 3 Years. – The compounded profit growth on a TTM basis is -3% vis-vis a compounded profit growth of 8% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 1.6% vis-vis 1.68% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 22.48% vis-vis 22.4% for Mar 2021
Conclusion
– has reduced debt.
– has been maintaining a healthy dividend payout of 51.08% – Stock is trading at 3.16 times its book value
-The company has delivered a poor sales growth of 4.33% over past five years.
– has a low return on equity of 11.48% for last 3 years.
– might be capitalizing the interest cost
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 16.94 and is trading at 20.6, thus bullish price action wise.
