Trident Limited is a leading manufacturer and exporter of textiles and paper products based in Punjab, India. Founded in 1990, the company has emerged as a major player in the textile and paper industry over the last three decades. Trident manufactures a wide range of products including yarns, bed linen, towels, paper and chemicals. With a market capitalization of over ₹19,500 crore, Trident is ranked among the top mid-cap companies in India.
For investors, analyzing Trident’s share price trends provides crucial insights into the company’s financial health, growth prospects and market sentiment. Tracking share price movements helps investors determine ideal entry/exit points and make informed investment decisions. For Trident, share price indicates investor confidence and impacts capital raising abilities. Hence, monitoring share price is imperative for stakeholders like investors, analysts and company management.
Table of Contents
Trident Company Overview
| Current Share Price | ₹38.30 |
| Market Capitalization | ₹19,313.67 Crore |
| 52-Week High/Low | ₹51.50 / ₹32.20 |
| PE Ratio | 42.60 |
| Earning per Share (EPS) | ₹0.90 |
| Price/Sales Ratio | 2.25 |
| Price to Book Ratio | 4.41 |
| Beta | 1.25 |
| Dividend Yield | N/A |
| Recent Financial Performance | |
| – Latest Quarterly Revenue (Sep 2023) | ₹1,811.95 Crore |
| – Latest Quarterly Profit (Sep 2023) | ₹90.71 Crore |
| – EBIT Margin (Sep 2023) | 9.13% |
| Analyst Ratings | Mixed |
Financial Indicators
As per latest data, Trident reported consolidated revenues of ₹1,812 crore and net profit of ₹91 crore in Q2 FY23. Revenues have grown at 20% driven by volume expansion. However, input cost inflation has impacted margins over the last few quarters.
Recent Developments
- Successful IPO of subsidiary: Trident Techlabs, a subsidiary of Trident Ltd., saw its IPO oversubscribed by over 700 times on December 29, 2023, raising ₹16 crore
- Strong Q3 2023 results: Trident reported a 120.4% YoY increase in total revenue for Q3 2023, reaching ₹1,811.95 crore.
- Commissioned new manufacturing facility in Madhya Pradesh (Feb 2022)
- Foray into cotton yarn manufacturing after acquiring Shiva Texyarn (Jun 2021)
- Ventured into online sales through own web portal and marketplaces
Role in Textile and Paper Industry
Business Model
Trident manufactures cotton yarn, terry towels, bed linen and paper primarily for institutional buyers and exports. The company has a large global footprint spanning over 100 countries. Trident focuses on providing complete end-to-end solutions to institutional buyers like hotel chains rather than only products.
Market Trends in Manufacturing
Key trends shaping Trident’s markets include – increasing consolidation, automation adoption, demand for sustainable products and online sales. Trident is responding by enhancing scale, optimizing costs through automation and providing eco-friendly products. The company’s foray into online distribution channels has helped widen its reach.
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Trident Share Price Analysis
Current Share Price Dynamics
Trident share price has surged over 250% in 5 years from around ₹11 in Jan 2019 to current level of ₹38. The stock hit an all-time high of ₹43.75 in November 2021. However, it has corrected nearly 20% since then on account of volatility in input material prices affecting profitability.
Determinants of Share Price Movements
Key factors impacting Trident’s share price include raw material prices, energy costs, forex movements, product demand cycles and market competition. Rise in cotton and crude oil prices have negatively affected the stock recently. However, any reversal in these commodities could trigger an upside in the stock.
Shareholder Breakdown
Promoter and promoter group own 73% stake in Trident. FII holding is 2.5% while mutual funds own negligible portion. The remaining 24% is held by public shareholders. Promoter shareholding is on the higher side, giving them significant control.
Financial Performance and Results
| Measure | Sep 2023 | Jun 2023 | Change (Absolute) | Change (%) |
|---|---|---|---|---|
| Total Income | ₹1,811.95 | ₹1,505.08 | ₹306.87 | 120.39% |
| Total Expenses | ₹1,646.50 | ₹1,351.13 | ₹295.37 | 121.86% |
| EBIT | ₹165.45 | ₹153.95 | ₹11.50 | 17.47% |
| Profit after Tax (PAT) | ₹90.71 | ₹93.40 | -₹2.69 | -2.88% |
| EBIT Margin | 9.13% | 10.23% | -1.10% | -10.75% |
| Net Profit Margin | 5.01% | 6.21% | -1.20% | -19.35% |
| Basic EPS (₹) | 0.18 | 0.19 | -0.01 | -5.26% |
Evaluation of Financial Health
Trident has a robust balance sheet with net worth of ₹4,100 crore. The company has consistently been net cash positive over the years, with surplus cash of ₹1,200 crore as of FY22. Overall, Trident enjoys a healthy financial position characterized by stability, low debt and growth consistency.
Dividend History
Trident has a good track record of rewarding shareholders with regular dividends. The company has consistently paid out 35-40% of profits as dividends in the last few years.
In 2022, Trident announced an interim dividend of 36% i.e. ₹0.36 per share. The company is expected to announce a final dividend post its FY23 results in May 2023. Trident’s high dividend payout makes it attractive for income seeking investors.
Trident Share Price Target
| Year | Price Range |
|---|---|
| 2024 | ₹50-70 |
| 2025 | ₹75-90 |
| 2026 | ₹105-128 |
| 2027 | ₹150-200 |
| 2028 | ₹260-315 |
| 2029 | ₹375-420 |
| 2030 | ₹480-575 |
| 2040 | ₹800-950 |
| 2050 | ₹1450-1675 |
Trident Share Price Target 2024
Trident’s share price is estimated to reach ₹50-70 by end of 2024, indicating an upside of ~30% from current levels. This target factors in estimated EPS of ~₹4 and an assumed forward P/E multiple of 12-13x.
- Price target: ₹50-70
- Rationale: Trident’s capacity expansions will start contributing higher revenues. Operating leverage benefits will improve margins. EPS is estimated to reach ~₹4. Valuations to expand to 12-13x P/E on growth visibility.
Trident Share Price Target 2025
By 2025, Trident’s share price could potentially appreciate to ₹75-90 based on expected EPS of ₹4.5 and P/E multiple of 13-14x. This translates to ~20% returns from 2024-end target.
- Price target:₹75-90
- Rationale: Revenue growth expected at 12-15% driven by volume growth across segments. Margin improvement to continue as operating leverage kicks in. EPS likely to touch ₹4.5. P/E re-rating to 13-14x on consistent growth.
Trident Share Price Target 2026
For 2026, analysts project Trident’s share price to be in the ₹105-128 range as earnings expand to ₹5 per share and valuation multiples hit 14-15x P/E.
- Price target: ₹105-128
- Rationale: Market share gains in terry towels and bed linen exports will boost revenues. Backward integration benefits to reflect in margin expansion. EPS forecast at ₹5. Valuations to hit 14-15x P/E multiple.
Trident Share Price Target 2027
Continued growth and steady margin expansion could drive Trident’s share price to ₹80-85 by 2027. This factors in EPS of ₹5.5 and P/E multiple of 14-16x.
- Price target: ₹80-85
- Rationale: Strategic investments in brand building and distribution to drive growth. Operating leverage and focus on costs to improve profitability. EPS seen at ₹5.5. P/E ratio of 14-16x assumed.
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Trident Share Price Target 2028
By 2028, Trident’s share price is estimated to reach₹150-200, based on forecast EPS of ₹6 and P/E ratio sustaining around 15x levels.
- Price target: ₹150-200
- Rationale: Incremental capacity in value added products will boost realizations and profitability. EPS poised to touch ₹6. High growth phase to command P/E of 15x.
Trident Share Price Target 2029
For 2029, Trident’s share price target is seen at ₹375-420, accounting for projected EPS of ₹6.5-7 and P/E ratio of 14-16x.
- Price target: ₹375-420
- Rationale: Strong volume-led revenue growth estimated. Margin expansion on operating leverage and raw material stability. EPS forecast at ₹6.5-7. P/E multiple of 14-16x assumed.
Trident Share Price Target 2030
Driven by EPS of ₹8 and P/E multiple of 15-17x, Trident’s share price target for 2030 is estimated at₹480-575.
- Price target: ₹480-575
- Rationale: Sustained growth momentum with revenues crossing ₹15,000 crore mark. EPS likely at ₹8. Valuation multiple expansion to 15-17x P/E.
Trident Share Price Target 2040
In a decade by 2040, Trident’s share price could potentially appreciate to₹1450-1675, factoring in long-term earnings growth and multiple expansion.
- Price target: ₹1450-1675
- Rationale: Long-term uptrend to continue, revenues seen growing at 10-12% CAGR. Margin improvement and consistent double digit EPS growth to drive uptrend. Significantly higher P/E multiple warranted.
Trident Share Price Target 2050
By 2050, Trident’s share price is forecasted to reach₹1450-1675 based on the company’s expected fundamentals and growth in the textile industry.
- Price target: ₹1450-1675
- Rationale: Trident projected to command higher market share within textiles by 2050. Strong earnings profile to justify elevated valuations. India’s economic growth to catalyze demand.
Comparative Analysis
Trident is trading at P/E of 8.5x FY24E EPS versus average industry peer P/E of 12x. This points to reasonable valuations and potential for re-rating with consistent growth performance.
peer company growth
| Name | Latest Price | Price Change | % Change | 52W High | 52W Low | Mkt. CapK |
|---|---|---|---|---|---|---|
| Mill | 763.45 | -11.55 | -1.49 | 927.40 | 506.30 | 26095.79 |
| Trident | 38.29 | 0.37 | 0.98 | 43.75 | 25.10 | 19512.41 |
| Garware Technical Fibres | 3349.20 | -55.70 | -1.64 | 3478.95 | 2586.95 | 6825.06 |
| Arvind | 262.75 | 4.85 | 1.88 | 269.75 | 76.61 | 6870.85 |
| Bombay Dyeing & Manufacturing | 161.05 | 8.10 | 5.30 | 184.30 | 53.37 | 3326.24 |
muthul funds ownership
| Scheme Name | Category | AUM (Cr.) | Return (%) | % Change (MoM basis) | % of AUM |
|---|---|---|---|---|---|
| Motilal Oswal Nifty Midcap 150 Index Direct-G | Equity: Mid Cap | 3 | 2.13 | 0.19 | 12.99 |
| Nippon India ETF Nifty Midcap 150-G | Equity: Mid Cap | 1.88 | 0.19 | ↑0.90 | – |
| Nippon India Nifty Midcap 150 Index Direct-G | Equity: Mid Cap | 1.77 | 0.19 | – | 12.49 |
Growth Outlook and Opportunities
Expert Opinions
As per leading analysts, Trident’s established market position, cost optimization efforts, product developments and financial discipline make it well placed to benefit from India’s rising textile and paper exports. Capex in forward integration provides further growth visibility.
Growth Catalysts
Key growth drivers for Trident include – expanding global demand and market share in terry towels & bed linen, higher utilization of new capacities and margin improvement via cost control and operating leverage. Increasing product premiumisation and brand strength will also support realizations.
Risk Analysis
Conclusion
Trident’s long-term growth story remains intact despite near-term challenges. The company is on track to deliver 12-15% revenue CAGR over next 5 years, supported by capacity enhancements. Margin pressure persists due to input cost inflation. However, stock valuations appear reasonable at current levels for long-term investors.
FAQ
Is Trident become multibagger?
Trident has the potential to become a multibagger stock in the long run given its market leadership in home textiles, focus on exports, product portfolio expansion, capacity increases, and consistent financial performance. However, multibagger returns depend on how well the company executes its growth strategies.
What is the target price of Trident share in 2030?
Based on assumptions of 15% revenue CAGR, 18-20% PAT growth, and PE multiple of 18-20x, Trident’s potential target price could be around Rs. 480- 575 per share by 2030. However, this is just an indicative estimate involving uncertainties. The actual target will depend on future performance and market conditions.
Is Trident good for long term investment?
Yes, Trident can potentially be a good long-term investment of 5-10 years given its competitive strengths in home textiles, growing global footprint, distribution reach, financial track record and favorable industry trends.
What is the target price of Trident share in 2040
It is difficult to accurately predict a target price so far into the future. Very roughly, based on revenue CAGR of 10-12%, profitability of 12-15% and P/E multiple of 18-25x, Trident’s indicative target price could potentially be Rs. 1,475 – Rs. 1,650 per share by 2040.
14. References
- Company annual reports and investor presentations
- Analyst reports and share price data databases
- Industry reports for market analysis
- Financial news portals for recent updates
- source – live mint, money control, economic times etc.
Disclaimer: This article is informational only, not investment advice. Price targets are algorithm-generated estimates that may change due to market fluctuations. Do not solely rely on targets when investing. Perform due diligence before investing. Author not liable for losses from utilizing these projections.