In India, Trident Ltd. produces terry towels and wheat straws. The business engages in the following industries through its subsidiaries: textiles, paper, and chemicals. The Textile segment is where the company makes the majority of its profits.
Trident Limited produces, sells, and trades textiles (such as yarn, terry towels, and sheets), paper, and chemicals. In India, it is a vertically integrated maker of home textiles, paper manufactured from wheat straw, and textiles (yarn, bath and bed linen). The company has manufacturing facilities in Punjab and Madhya Pradesh and is in business in the paper and textiles sectors.
The textiles sector includes yarn, towels, bed sheets and the manufacture of dyed yarns (including utilities). The Paper and Chemical/Chemical segment includes paper and sulfuric acid (including utilities).
The company's product portfolio includes solid bath sets, beach towels, embroidered towels, bath mats, bathrobes, printed bed linen, duvets, duvet covers, cushion covers, viscose mixed yarn, core yarn, bamboo/cotton yarn, a set of dyed bed linen, micro modal / cotton mixed yarn, drawing paper, and biblical and offset printing paper.
Trident share performance
The Nifty benchmark has fluctuated throughout the day, indicating some volatility in the broader markets, while some firms are obviously moving in one direction. Only the IT and pharmaceutical industries are affected at the sectoral level, and the majority of industries operate in the green zone.
Therefore, it can be assumed that, overall, bullish sentiment prevails in today's session In the same vein, one stock looks interesting from a technical point of view and that is Trident Limited (NS: TRIE).
It is a manufacturer of towel, yarn and wheat straw terry paper with a market capitalization of INR 17,722 crore. This mid-cap also holds an FII stake of 2.59%, up from 2.14% a year ago.
Market participants showed good interest in this stock, which rose 4.52% to INR 37, at 14:58 IST, returning a little to the high of the day of INR 37.25 on the NSE. Since the first week of September 2022, the stock has been facing a slight downtrend and recently marked a low of INR 34.3, the lowest level in about 4 months. The fall in the stock was quite mild, which also led to the formation of a bearish trend line, joining the highs of the downtrend.
Today's 5% rally helped the stock break through this trend line resistance, which is the first sign of a trend reversal from here. The volume of this day of rupture was recorded at 10 million shares so far, which is the highest since September 8, 2022, and 192% higher than the 10-day average volume of 3.92 million shares. The volume supporting today's movement is pretty decent, although a much higher figure would have been better.
Now the stock seems to be preparing for a good CMP rally and could reach the level of around INR 42 quite soon. This represents a potential upside of about 13% to 14%. On the other hand, there is a good demand area around INR 34 – INR 35 that should contain the stock in case it chooses to reverse from here. Below that, holding Trident shares would become too risky.
Trident's Vision 2025: Targeting Rs25,000cr Revenues By 2025
Trident Group recently invested Rs 338 crore in adding new spinning capacity. The company added 61,440 spindles and 480 rotors, including other balancing equipment. Trident began commercial operations for the expanded capacity on July 27,2021.
Prior to this capacity increase, Trident's rotational capacity was 5,27,808 spindles, 6,984 rotors and 160 Air jets. The new investment of Rs 338 crore includes Rs 253 crore of outside borrowing and Rs 85 crore of internal accumulations.
Trident Group expects the additional capacity to further strengthen the company's position in the textile sector. In FY21, Trident's capacity utilization was 84%. Trident recorded a turnover of Rs 45,353.1 million for the year 2020-21.
Founded in 1990, Trident Limited is the flagship company of Trident's dynamic and growth-focused $1 billion group. Founded by Mr. Rajinder Gupta, president and first-generation entrepreneur, the company is one of the world's top five terry towel giants.
Based in Ludhiana, Punjab, it is the largest player in terms of terry towel capacity and one of the largest home textile players in India. From a solitary yarn manufacturer, the company has grown into one of the world's largest integrated manufacturers of state-of-the-art textiles and home paper.
It has marketing offices spread across the country in Chandigarh, Bhopal, Gurgaon, Delhi and Surat and internationally in New York, USA and Warrington in Cheshire, UK. The company has expanded its presence in more than 150 countries around the world.
Trident Group next 3 year vision 2025
To accelerate the growth momentum, Trident has launched "Vision 2025" to synchronize the group's efforts for a better positioning of the company in all business sectors. The Company seeks to deliver long-term, sustainable shareholder value.
Its plan is to reach revenues of Rs 25,000 crore by 2025 with 12% growth in net profit; Make Trident a national brand and digitize by completing the journey of smart manufacturing or Industry 4.0. The Board authorized its Strategic Committee to review various rapid growth strategies.
The Strategic Committee will explore various options to increase shareholder value, including capital allocation strategies to improve return ratios, expand existing businesses and diversify into new businesses through organic and inorganic growth. The committee will explore the possibility of creating targeted business groups to generate synergies and explore business alliances.
Optimizing the ability to leverage the ability to create value and penetrating new markets, product development, e-commerce and brand building are also part of the Committee's growth strategy.
Home Textiles
As one of the biggest vertically integrated businesses in the world, the company holds a special position in the home textile sector. The two primary business sectors are bath and bed linen. Trident's core values include innovation in everything from industrial infrastructure to the utilisation of fibre to yarn creation and processing. The business controls every aspect of its value chain.
Spinning, wide-width air jet and jacquard weaving, soft flow dyeing, and fully automated cutting and sewing for towels are just a few of the company's cutting-edge production capabilities. Karl Mayer, Texpa, Schmale, and Thies from Germany; Toyota from Japan; Benninger from Switzerland; Angled from Spain; ETON from Sweden; Zimmer from Austria; and Picanol from Belgium are just a few examples of the world-class machinery found in the manufacturing facilities.
The business maintains close ties to the market and its clients thanks to its design studios in the US and the UK. For end-to-end innovation in product design and printing, it has a committed staff of qualified designers from India's most respected institutions. Additionally, Trident established six new showrooms in India in January 2021 and another six in April 2021 to expand its reach.
Cotton Yarn
The business has been in operation for almost 20 years and features India's largest single-campus spinning facility. It produces premium cotton yarn for domestic use in the home textiles and retail industries.
Suessen's tiny accessories, the Zinser and Murata ring frame, the Trutzchler blow chamber, and test technologies like UT 5 are among the cutting-edge technologies present in the manufacturing facilities. An comprehensive selection of high-quality yarns are part of its diverse product portfolio.
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