Trident Ltd. share price target

While we maintain our FY22 earnings estimate, on factoring in a) the growth opportunity with the normalization of business operations as well as b) an improving demand outlook, we increase our FY23E/FY24E earnings estimate...

In our interaction with Trident, management cited 1) plans to garner Rs250bn in top-line with 12% PAT margin by 2025 (requires entry in new business line and no concrete plan has been finalized yet) 2) scope of improvement in capacity utilization (53% in FY21) for bath linen segment 3) target to scale...

TRID's revenue grew 2.1x YoY to INR14.8b (est. INR13.1b). EBITDA margins expanded 860bp to 25.3% on operating leverage and gross margin expansion of 420bp to 59.5%. EBITDA adjusted for forex gains stood at INR3.7b (est. INR2.2b) during the quarter (3.2x YoY). EBITDA adjusted for the RoSCTL benefit (for 4QFY21) increased 2.7x YoY to INR3.1b. EBITDA...

Trident (TRID) reported a strong performance on the back of demand revival in the Home Textiles and Paper segments. The demand trend in Home Textiles is expected to continue in the upcoming quarters as well, led by order book visibility for the next six months. However, demand revival in the Paper segment has been impacted by the second COVID wave. Recovery is...

Trident (TRID) reported strong performance on the back of a demand revival in the Home Textiles segment. The demand trend is expected to continue in upcoming quarters on six months of order book visibility. The Paper segment...

In Q2FY20, Trident Ltd. reported net sales revenues of Rs 1,341 cr (4% on annual comparison & 2% QoQ), EBIDTA of Rs 265cr (2% YoY & 13% QoQ) with EBIDTA margin at 19.7% (expansion of 35bps on annual comparison).

In Q1FY20, Trident Ltd. reported net sales revenues of Rs 1,312 cr (?16% on annual comparison & ?8% QoQ), EBIDTA of Rs 305cr (?50% YoY & ?13% QoQ) with EBIDTA margin at 23.2% (expansion of 526 bps on annual comparison) driven by improvement in the volume growth for both bed & bath linen

Sector: Textile /Small Cap | Earnings Update 1QFY20 Background: Trident Ltd was incorporated in the year 1990, headquartered in Ludhiana, Punjab. Company operates in three key business segments such as Home textile (49% of revenue), Yarn (33% of revenue) and Paper (18% of revenue) with manufacturing facilities located in Punjab and Madhya Pradesh. Company has a capacity to produce 90,000 MTPA of terry towel, 43.2mn mtrs of bed linen, 115,200 MTPA of yarn and 175,000 TPA of wheat straw based paper. Between FY15-19, Company's...

Sector: Textile /Small Cap | Earnings Update 4QFY19 Background: Trident Ltd was incorporated in the year 1990, headquartered in Ludhiana, Punjab. Company operates in three key business segments such as Home textile (49% of revenue), Yarn (33% of revenue) and Paper (18% of revenue) with manufacturing facilities located in Punjab and Madhya Pradesh. Company has a capacity to produce 90,000 MTPA of terry towel, 43.2mn mtrs of bed linen, 115,200 MTPA of yarn and 175,000 TPA of wheat straw based paper. Between FY15-19, Company's...

In Q4FY19, Trident Ltd. reported net sales revenues of Rs 1,417 cr (?19% on annual comparison &?8% QoQ), EBIDTA of Rs 270cr (?26% YoY&? 5% QoQ) with EBIDTA margin at 19.1% (expansion of 106 bps on annual comparison)

Largely in-line performance: TRID's revenue increased 18.5% YoY to INR14.1b (our estimate: INR13.4b) in 4QFY19. EBITDA margin shrank 20bp YoY to 18.1% (our estimate: 18.1%). EBITDA adjusted for forex gain increased 17.2% YoY to INR2.5b (our estimate: INR2.4b). Adj. PAT was up 64.3% YoY to INR895m (our estimate: INR873m). For FY19, consol. revenue...

16 January 2019 driven by inventory gain and better realizations. Adj. PAT grew 74.8% YoY to 12.8%/78.3% YoY, with margin expansion of 310bp YoY to 20.9%. Volumes grew strongly in both the bed linen (+41.7% YoY) and bath linen (10.1% YoY) segments. Realization, too, was up by a healthy 15%/8% YoY in bed/bath linen. In the paper segment, a better product mix and price increases more than offset the impact of the 10% YoY volume decline, resulting in overall value growth of 15.7% YoY (implying ~26% YoY realization growth). The only drag to the margins came from yarn due to a decline in the spread (as cotton cost rose ~10% YoY, but realization increased merely by 5% YoY). TRID sustained its momentum in the bed linen (utilization of 60% in 9MFY19) and paper segments (EBIT margin up 910bp YoY to 38.

In Q2FY19,Trident Ltd. reported net sales revenues of Rs 1,392 cr (?24% on annual comparison &?23%QoQ), EBIDTA of Rs271cr (?30% YoY&?33% QoQ) with EBIDTA margin at 19.3% (expansion of 124 bps on annual comparison).

17 October 2018 TRIDs revenue increased 24.2 % YoY to INR13,915m (estimated INR12,121m) in 2QFY19. EBITDA margin expanded 730bp YoY to 22.8 % (estimated 20.5 %), driven by (1) operating leverage in both bed and bath linen, and (2) premiumization in bed linen. EBITDA adjusted for forex loss increased 83 % YoY to INR3,169m (estimated INR2,485m). Adjusted PAT increased 194.5 % YoY to INR1,489m (estimated INR936m). TRID has posted 10.3 % growth in 1HFY19 with a margin expansion of 430bp. We expect the momentum to continue with a growth of 19.1 % in 2HFY19 and a margin expansion of 50bp. 2QFY19 was a promising quarter for the company as each segment surpassed the utilization levels of FY18. Bath linen attained a utilization of 53 % in 2QFY19 v/s 45 % in FY18 and bed linen attained a utilization of 61 % in 2QFY19 v/s 44 % in FY18. Going forward, management expects to achieve 60-70 % utilization for both segments by FY20.

Trident reported 2QFY19 PAT at INR 1.1bn, significantly higher than JMfe/street estimates, primarily driven by robust performance in terry towel segment. EBITDA margin expanded 330bps YoY to 18.8% driven by a) operating leverage due to higher towel volumes, b) sheet segment turning EBITDA positive in 1QFY19, and c) YoY increase in yarn EBITDA on a low base in 2QFY18 (inventory loss). Bed sheet and terry towel volume increased 32.5% and 29.6% YoY, respectively. a) INR depreciation (15%+ YTD-CY18), b) settling of market place disruption in the US and c) extension of MEIS (4% export benefit) have provided a welcome relief to the company. Change in export subsidies (MEIS/ROSL) and cotton price movement...

Sector: Textile /Small Cap | Earnings Update 1QFY19 Background: Trident Ltd was incorporated in the year 1990, headquartered in Ludhiana, Punjab. Company operates in three key business segments such as Home textile (49% of revenue), Yarn (33% of revenue) and Paper (18% of revenue) with manufacturing facilities located in Punjab and Madhya Pradesh. Company has a capacity to produce 90,000 MTPA of terry towel, 43.2mn mtrs of bed linen, 115,200 MTPA of yarn and 175,000 TPA of wheat straw based paper. Between FY15-18, Company's...