Trident Ltd. share price target

In Q1FY19, Trident Ltd. reported sales revenues of Rs 1,131 cr(4% on annual comparison & 5% QoQ), EBIDTA of Rs 204cr (21% YoY& 5 QoQ) with EBIDTA margin at 17.9% (correction of 375 bps on annual comparison) on back of notional MTM loss of Rs 41.6 cr booked due to depreciation of INR

Trident reported disappointing Q1FY19 results due to weaker than expected sales/margins in Textile segment. The company's sales stood at Rs11,312 mn (8.4% below our estimate); even EBITDA of Rs1,955 mn was 15.1% below our forecast. Bed linen sales increased 47% YoY; however, bath linen sales fell 17% YoY. Textile segment EBIT margin contracted 521bps YoY mainly due to company's inability to take adequate price hikes, indicating steep competition. Textile segment EBIT was lower than our estimate and fell to Rs394 mn (-57.2% YoY). On a positive note, Paper & Chemicals...

8 August 2018 YoY to INR11,312m (est. of INR12,300m) in 1QFY19 due to 5.3% YoY de- growth in Textiles business, while Paper & Chemicals business grew by 2% YoY. EBITDA margin expanded 130bp YoY to 21% (est. EBITDA increased 3% YoY to INR2,371m (est. Adj. PAT grew 9% YoY to INR894m (est. Forex loss stood at INR416m in 1QFY19 v/s a forex gain of INR96m in 1QFY18. segment grew by a robust 47% YoY (+14% QoQ) in 1QFY19. Domestic volumes grew 43% YoY; realization too increased 15% YoY. Furthermore, utilization increased from 44% in FY18 to 55% in 1QFY19, enabling the segment to break even at the EBITDA level. Management expects utilization to remain at similar levels in FY19 and reach 75% by FY21 (by when the EBITDA margin of the segment is guided to be ~15%).

In Q4FY18, Trident Ltd. reported sales revenues of Rs 1,182cr, EBIDTA of Rs 214cr with EBIDTA margin at 18.1% (correction of 161 bps on annual comparison).

Textiles segment sales rose 11.1% QoQ to Rs9,661 mn, but declined 7.9% YoY. Segment EBIT was lower than our estimate and fell to Rs650 mn (-11.2% QoQ, 46.8% YoY). On a positive note, bath linen and bed linen registered volume growth of 12% and 28%, QoQ, respectively. Paper & Chemicals segment EBIT fell 6.9% QoQ to Rs601 mn. Segment EBIT margin contracted 137bps QoQ to 27.5%....

Trident Ltd. is the flagship company of the Punjab-based conglomerate, Trident Group. It manufactures textile products (bed and bath linen and various types of cotton yarn), paper (wheat straw-based ), chemical and energy. The textiles...

Background: Trident Ltd was incorporated in the year 1990, headquartered in Ludhiana, Punjab. Company 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...

Subdued quarter; Expecting Sustainable Profitability Going Forward: The company has witnessed many challenges over 9MFY18 starting with highercotton prices, appreciating rupee, lower government incentives and uneven vendor procurement cycle on account of de-stocking in terry towels. Bed Linen registered 44% volume growth in 9MFY18 and Bath Linen registered 12% volume de-growth in 9MFY18 compared to the same period last year.

In Q3FY18, Trident Ltd. reported sales revenues of Rs 1,169 cr, EBIDTA of Rs 232cr with EBIDTA margin at 19.8% (correction of 3 bps on annual comparison). Total comprehensive income was reported at Rs 81.9cr.

We had expected a 5-7% topline growth in FY18 alongwith slight margin improvement (expected to be backended in H2FY18). However Q3FY18 was also subdued in line with H1FY18 as the textile...