Initiate coverage on Trident as a BUY with a price objective of Rs 104.4 representing a potential upside of 74% from the CMP of Rs 60.
The newly commissioned capacities for manufacturing of terry towel and bed linen are expected to lead to improved product mix in favour of the high margin home textiles. Further the fiasco created over Welspun's product quality has helped Trident secure newer clientele in the fast growing exports of home textiles. Further debottlenecking is expected to enhance paper manufacturing capacities by ~15%. This coupled with the recent...