Trident Share Price Analysis in 2023: Good Turnaround story

The Trident share price has been on a tear lately, breaking out of a long-standing resistance zone in the Rs 36-39 range. This is a bullish development, and it suggests that investors are becoming more optimistic about the company’s prospects.

There are a few reasons for the recent optimism about Trident. The company has been taking steps to improve its profitability, such as increasing exports and implementing cost-saving measures. Additionally, the textile industry as a whole is expected to grow in the coming years, which could benefit Trident.

Of course, there are still some risks associated with investing in Trident. The company is facing some challenges, such as rising cotton prices and increasing competition from China. However, the recent breakout in the share price suggests that investors are willing to overlook these risks for now.

So, is it time to buy Trident shares? It’s a decision that you’ll need to make for yourself, but the recent breakout in the share price is definitely a positive development. If you’re looking for a long-term investment in the textile industry, Trident could be a good option.

Trident share price: Company Background:

• • Trident Limited was founded in 1987 by the Ruia family.
  • The company’s headquarters is located in Mumbai, India.

• Manufacturing Presence:

  • Trident has manufacturing facilities in India, Bangladesh, and Vietnam.

• Brands:

  • The company’s products are sold under various brand names, including Trident, Park Avenue, and Allen Solly.

• Customer Base:

  • Trident serves a diverse customer base that includes retailers, wholesalers, and garment manufacturers.

• Awards:

  • Trident Limited has been recognized for its excellence in corporate governance and has received the “Golden Peacock Award.”

• Industry Presence:

  • Despite facing challenges, Trident is a major player in the Indian textile industry.
  • The company has a strong brand reputation and an extensive distribution network.

• Investments in Technology:

  • Trident is actively investing in new technologies and capabilities, which could contribute to its long-term performance and competitiveness.

• Business Operations:

  • Trident Limited is one of the largest integrated textile manufacturers in India.
  • The company is involved in various textile processes, including spinning, weaving, processing, garmenting, and home textiles.
  • It boasts a significant production capacity, with over 2.5 million spindles and 100,000 looms.
  • Trident exports its products to more than 50 countries, indicating its global reach and market presence.

key points from the latest financial reports of Trident:

• Net sales: Net sales for the quarter ended June 2023 were ₹1,493.71 crores, down 11.08% from the same quarter in the previous year.
• Operating profit: Operating profit for the quarter ended June 2023 was ₹227.23 crores, down 15.39% from the same quarter in the previous year.
• Net profit: Net profit for the quarter ended June 2023 was ₹115.68 crores, down 24.19% from the same quarter in the previous year.
• Debt-to-equity ratio: Debt-to-equity ratio as of March 31, 2023, was 1.24.
• Interest coverage ratio: Interest coverage ratio as of March 31, 2023, was 2.98.

The key points from the latest financial reports of Trident indicate that the company is facing some challenges. Net sales and operating profit have declined from the same quarter in the previous year. Net profit has also declined, but to a lesser extent. The debt-to-equity ratio is at a comfortable level, but the interest coverage ratio is lower than ideal.

The company has attributed the decline in net sales to the following factors:

• Increase in cotton prices
• Decline in demand for textiles
• Delays in the commissioning of new plants

The company has taken the following steps to address these challenges:

• Focused on increasing exports
• Implemented cost-saving measures
• Accelerated the commissioning of new plants

The company expects to improve its performance in the coming quarters. However, the risks to the company’s financial performance remain.

Key Points from the Director’s Report

• The company is facing some challenges, but it is confident of overcoming them.
• The company is focusing on increasing exports and implementing cost-saving measures.
• The company is accelerating the commissioning of new plants.
• The company expects to improve its performance in the coming quarters.

The directors of Trident have also said that the company is committed to sustainability and social responsibility. The company has a number of initiatives in place to reduce its environmental impact and improve the lives of its employees and the communities in which it operates.

Here are some specific quotes from the directors of Trident:

• “We are confident of overcoming the challenges we are facing and returning to profitability in the coming quarters.” – Deepak Nanda, Managing Director
• “We are focused on increasing exports and implementing cost-saving measures to improve our profitability.” – Rajiv Dewan, Chairman
• “We are accelerating the commissioning of new plants to increase our capacity and meet the growing demand for our products.” – Anthony Desa, Executive Director
• “We are committed to sustainability and social responsibility and are taking steps to reduce our environmental impact and improve the lives of our employees and the communities in which we operate.” – Mr. Ramesh Chand, Independent Director

The directors of Trident are positive about the future of the company. They believe that the company is well-positioned to overcome the challenges it is facing and return to profitability in the coming quarters.

Trident Share Price Analysis: Technical Analysis

Breaking Through Resistance:

Recently, Trident’s share price did something significant. It managed to break through a major hurdle in the Rs 36-39 range. This hurdle had been a stubborn obstacle for over a year, but the fact that the stock managed to push through it suggests that a lot of investors are feeling optimistic about Trident.

Volume Matters:

When this breakthrough happened, there was a noticeable increase in trading volume. Think of it like a surge in activity. This suggests that more people are getting interested in Trident, and it’s shifting from a “wait-and-see” phase to a more positive outlook.

Change from a Downtrend:

Before this breakthrough, Trident’s share prices were kind of stuck in a downward trend for most of 2022 and the beginning of 2023. However, things started to look up when the stock found stability in the Rs 25-28 range. This range is particularly important because it combines a previous breakout point with a key moving average (200 SMA).

Low Volume during the Dip:

Interestingly, when Trident’s share price was going down, the trading volume was relatively low. This is different from when the stock had a strong rally from Rs. 10 to Rs. 70. It suggests that the big, long-term investors are still holding onto their Trident shares, and it’s mainly short-term traders who decided to take some profits.

Opportunity for a Comeback:

Considering all this, Trident seems like a stock with potential for a comeback. If you’re a long-term investor, this might be a good time to consider getting in or adding to your position. The Rs. 42-39 range looks like a good entry point.

Keep an Eye on Rs. 38:

Remember, as long as Trident’s share price stays above Rs. 38, it’s a promising stock. This level acts as a crucial support, and if it holds, it strengthens the case for the stock.

Also Read: Marine Electricals (India) Limited: A Sound Financial Investment for Small Investor in 2023

Conclusion

Trident’s recent breakthrough through a long-standing resistance zone, along with increased trading activity, suggests a shift towards optimism. The combination of support factors, including the 200-day SMA and the previous breakout zone, makes Trident an appealing option for long-term investors. So, if you’re considering investments, Trident is worth a closer look, and it’s important to monitor the Rs. 38 level as a key indicator of its performance.

Disclaimer :

 

CryptoPunditz.com is not a registered investment, legal, or tax advisor or a broker/dealer. All investment/financial opinions expressed by CryptoPunditz.com are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up-to-date, occasionally unintended errors and misprints may occur.  

 

Source:

https://www.tridentindia.com/investor-overview

https://www.moneycontrol.com/financials/trident/balance-sheetVI/AI01