Skip to main content

Share India recommends BUY Trident Ltd for a target of Rs 150

Share India Securities Ltd, a leading knowledge and technology driven stock broker, recommends buying Trident Ltd shares for a target of Rs 150 in the next 1 year.

 Share India says “Trident reported its Q2 FY18 results which were in line with our expectations given GST teething problems and implementation issues for the same. The revenue was flat y-o-y at INR 11,549mn (vs. 11,600mn in Q2) – without any excise duty effect. On a segment basis the revenue for both Textile and Paper business was flat. PAT was however, below our expectations with reported figure at INR 493.9mn (vs. our expectation of INR 756mn). The drop in PAT was mostly due to higher COGS which led to lower gross margin.

The textile business which has significant geographic dispersion was majorly impacted with segment profit dropping approximately 40% y-o-y for Q2 FY18. Trident also saw considerable increase in trade receivable (up 20% 6M FY18) and drop in inventories (down 30% 6M FY18).

We attribute increase in raw material prices and sudden change in working capital policies entirely to GST and maintain long term positive for Trident. Tridents performance on all other parameters was in line with our expectations including drop in financial borrowings and healthy balance sheet ratios.

We maintain buy on Trident and keep constant FY18E EPS of INR 8 and maintain TP 150.

Trident is set to benefit from multiple factors – rising share of India in global textile exports and expanding share of high margin products like bed linen/copier paper and higher backward integration.

We estimate sales CAGR of 10% over FY18-20E and PAT CAGR of 25% over FY18-20E, with improving RoE to 20% in FY20. We value Trident at 15x FY19E EPS (owing to high operating cash flows and premium product mix) of INR 10, arriving at a TP of INR150.

We initiate coverage with BUY. Trident Ltd's operations are segregated into four main segments viz. yarns, terry towels, paper and chemicals. The product offering of the company includes yarns segment: 100% cotton yarn (Grey/Dyed/Mercerized), Single & TFO Doubled, Hosiery & Weaving (Combed & Carded), etc. Terry towels: Piece-dyed dobbies, yarn-dyed single and double jacquards, uni-dyed jacquards, etc. Paper segment: Spectra copier - ultra-finish, highspeed Copier Paper, goldline surface swize maplitho, etc”

About Share India Securities Ltd

Share India Securities Ltd, engaged in the business of equity broking, investing and trading activities for the last 24 years, became 200th SME Company to get listed on BSE SME Platform on 5th October 2017. The company in addition to providing the services as a Depository Participant, Research Analyst, Mutual Fund Advisor/Distributor, has also filed an application with Securities and Exchange Board of India for the registration of Company as a Portfolio Manager.
The Company has received many Awards and Recognitions some of them are, an award for appreciation for our contribution in the 1 crores Demat accounts opened by CDSL. Company has been accredited with certificate for being among the top performing members for the year 2015-16 in equity and equity derivatives segment of the National Stock Exchange of India Limited. Company has been accredited with certificate for being among the top performing members for the year 2015-16 in Currency derivative segment of the National Stock Exchange of India Limited.

For more information, please contact: Mr. Aryan Prem Rana, AARYANA MATASCO 
Email ID: info@aaryanamatasco.com www.aaryanamatasco.com
Labels:
Location: Mumbai, Maharashtra, India

Comments

Post a Comment

Popular posts from this blog

India’s Economic Slowdown: Navigating Challenges with Resilience and how planetary alignments are suggesting an optimistic economic outlook

 By Aryan Prem Rana, Founder, VRIGHT PATH GROUP (www.vrightpath.com ) India, the world’s fastest-growing major economy, faces a challenging phase as GDP growth slows. The latest figures show Q2 growth dipping to 5.4%, the lowest in seven quarters. This decline comes as 63 of the Nifty 100 companies miss revenue estimates, raising concerns about underlying economic health. Growth Engines Sputtering The economic slowdown is most pronounced in key sectors: • Manufacturing growth has dropped to 2.2%, a sharp decline from last year’s 14.3%. • Urban consumption, a cornerstone of economic growth, is weakening. Industry stalwarts such as Reliance, HUL, and Maruti have seen market corrections of 15-23%. RBI’s Balanced Approach The Reserve Bank of India (RBI) has responded with measured policies, holding the repo rate steady at 6.5% for the eleventh consecutive meeting. This neutral policy stance balances inflation control with growth needs. In a key liquidity-boosting move, the RBI redu...
Post a Comment
Read more

IMFA Reports Strong Q2 FY25 Financial Performance Driven by Higher Output and Operational Efficiency

  Indian Metals & Ferro Alloys Ltd (IMFA), India’s leading fully integrated producer of ferro alloys, announced robust financial results for the second quarter of FY25, ending on September 30, 2024. Financial Performance Highlights For Q2 FY25, IMFA reported strong standalone financial results: Revenue : ₹691.92 crore EBITDA : ₹175.62 crore, with a margin of 25.38% Profit After Tax (PAT) : ₹132.73 crore, achieving an 18.6% PAT margin Earnings Per Share (EPS) : ₹24.60 (not annualized) Exports : ₹652.97 crore This strong performance underscores IMFA's improved margins and profitability compared to the previous quarter, driven by higher production levels and operational efficiencies. Key figures from the company's half-yearly (H1 FY25) performance also reflect IMFA’s resilience in a challenging market, with a PAT of ₹250.25 crore and revenue totaling ₹1,354.2 crore. Operational Highlights IMFA’s operational metrics for Q2 FY25 demonstrated growth and stability: Ferro Chrome Pr...
Post a Comment
Read more

ICE Make Reports 21.31% jump in consolidated revenue for Q2 FY2025

 Ice Make Refrigeration Limited (NSE: ICEMAKE), a leading innovator in cooling solutions and a prominent manufacturer of over 50 types of refrigeration equipment in India, has announced its financial results for the second quarter (Q2) of the fiscal year 2025, showcasing impressive growth and consistent performance across key financial metrics. Standalone Financial Performance The company reported a notable increase in revenue from operations, reaching ₹101.38 crores in Q2 FY2025. This represents a 21.88% jump compared to ₹83.17 crores in Q1 FY2025 and a significant 34% surge from ₹75.72 crores in Q2 FY2024. Total revenue also followed a similar upward trajectory, standing at ₹101.65 crores, up 21.89% quarter-on-quarter (QoQ) and 33.87% year-over-year (YoY). EBITDA for the quarter was recorded at ₹8.51 crores, marking an impressive 35.08% increase from ₹6.30 crores in the previous quarter and a 10.81% rise compared to ₹7.68 crores in Q2 FY2024. The EBITDA margin improved to 8.37%, ...
Post a Comment
Read more