On Monday, big deals on NSE caused Trident, a leading textile fabric maker, to drop in price quickly. Through a block deal, Trident Limited Employees Welfare Trust sold more than 1.23 million equity shares in Trident, which added up to about 31.89 crore. These shares were bought on the open market by the promoter, the Madhuraj Foundation.
According to data from the NSE, Trident Limited Employees Welfare Trust sold 123,85,000 equity shares in Trident on March 27 in a block deal at a price of 25.75 per equity share, totaling 31.89 crore.
In the same block deal, Madhuraj Foundation bought the same number of shares, 123,85,000, for 25.75 each.
One of the people who support Trident is the Madhuraj Foundation. Based on how Trident’s shares were held as of December 31, 2022, Madhuraj owned over 137.06 crore equity shares, which is 26.9% of Trident. On Monday, each Trident share closed at 25.35 on the NSE, which was 6.5% less than the day before. The stock hit a new 52-week low of 25.05 per share on the exchange earlier in the day.
On Friday of last week, each share of stock was worth 27.10.
Motilal Oswal has given Trident a “Buy” rating with a target price of 40.
In a report released last month, JM Financial said that Trident is still in a good position because of structural drivers like increased market share in the US, the US ban on Xinjiang imports, duty reimbursement by the GOI, and market share gain on the China+1 theme. Also, over time, FTAs with the UK/EU could likely make it easier for the company to reach a bigger market. Fears of a recession and a buildup of inventory at retailers are likely to keep demand for textiles low in the near future. The company is still a Buy, but JM Financial has set a target price of 40 for it.
In February 2023, the company sold 3,312 metric tonnes of bath linen, 2.77 million metres of bed linen, and 7,575 metric tonnes of yarn. The company made 11,949 metric tonnes of paper and 8,356 metric tonnes of chemicals for the paper and chemicals dividend.
During Q3 of FY23, the company made a net profit of 1,420 million, which was 32.1% less than the same time last year. Its total income was 16,247 million, which was 17.2% less than the same time last year.
Trident is the main company of the Indian business conglomerate Trident Group, which is a global player. Trident is a textile (Yarn, Towels, and Bedsheets) and paper (made from wheat straw) company with its headquarters in Ludhiana, Punjab.
Source: Team CurrencyVeda