Shares of Trident Limited have delivered around 500 per cent return to its shareholders in the last one year. On Thursday, the stock rose 5 per cent to hit a new 52-week high of Rs 45.2 on the Bombay Stock Exchange (BSE).
It has been gaining for the last three trading sessions and has risen 16 per cent during the same period. In the past one year, the share price jumped from Rs 7.56 to Rs 45.20, logging around 497 per cent return in this period.
An amount of Rs 5 lakh invested in this multibagger stock a year ago would have turned into Rs 30 lakh today.
The scrip has jumped around 357 per cent since the beginning of this year. With a market capitalisation of more than Rs 23,000 crore, the shares stand higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Trident Limited reported a net profit of Rs 234.59 crore for the quarter ended September 2021 as against a net profit of Rs 105.69 crore in the year-ago quarter. The company's net sales rose 44 per cent to Rs 1,691.59 crore during the quarter.
Brokerage house Motilal Oswal noted that Trident is witnessing robust demand after the lifting of COVID-19-related lockdown restrictions. The demand trend in Home Textiles is expected to continue, with freight cost gradually subsiding and pent-up demand in the US and Europe market. The paper segment is expected to see a sharp recovery with the opening of offices and educational institutes.
"The management has taken several initiatives to pare down its debt, including prepayments of high-cost loans, reduction in working capital through retention of cash accruals, other measures to reduce the CTC cycle, and build up its cash reserves," it said in a separate report.
"We maintain our FY22 earnings estimate, factoring in the growth opportunity with normalization of business operations, coupled with an improving demand outlook. We increase our FY23E/FY24E earnings estimate by 11/22 per cent. We maintain our Buy rating," Motilal Oswal added.
According to MarketsMojo, the company has declared positive results for the last 4 consecutive quarters and has a strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.08 times.
The technical trend has improved from Mildly Bullish on September 2, 2021 and has generated 100.89 per cent returns since then. The stock is technically in the Bullish range now and multiple factors for the stock are Bullish like MACD, Bollinger Band, KST and DOW.
Also, institutional investors have increased their stake by 0.54 per cent over the previous quarter and collectively hold 3.07 per cent of the company.
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