Trident share fundamental analysis:- Friends, today we will know whether Trident is good share for buying. The kind of performance Trident is constantly showing in its business as well as in the share price, it seems to be creating a lot of hope for the investors from the future.
Today, along with analyzing the details of the entire business of Trident Ltd, we will look at the future opportunities, so that we will know whether Trident is a fundamentally strong company or not.
Trident share fundamental analysis
Trident Business Details:- Before knowing the fundamental analysis of the company well, it is very important to know about the company and its business. The name of Trident is definitely seen in the fast growing companies of India. Trident Limited, the flagship company of the Trident Group. Mainly Trident’s business is spread in Yarn, Home Textile, Paper and Chemical.
Yarn Business:- First of all, if we look at the Yarn category business segment, then Trident is the 3rd largest manufacturer of India. Where the company manufactures different types of products, out of which many products like Cotton combed yarn, Special open-end yarn, Slub yarn are seen. The company has about 26 percent Revenue Yarn coming from the category business segment. Recently, the company seems to be getting very low profit margins from this segment as compared to the rest, but due to the rest of the categories being dependent on this segment, it seems to be adding on to rapidly increase its manufacturing capacity.
Textile Business:- Trident is India’s 2nd largest manufacturer in the Home Textile category. The company manufactures various products like Decorative pillows, Bed sheets, Terry towels, and Trident is the world’s largest manufacturer of Terry towels. The company gets the highest 54 percent revenue from the Home Textile segment itself. As much as the company is expanding in the Yarn business segment, the Home Textile category will get the most benefit from it, because most of the production of Home Textile is seen from Yarn itself.
Paper and Chemical Business:- Along with the rest of the business segment, the company is also involved in Paper and Chemical. Trident is the world’s largest manufacturer in Wheat Straw Based Paper Manufacturing. From where the company gets about 20 percent revenue. To increase the paper business segment, they are increasing their investment amount in a big way. And along with that, Trident Chemical is slowly spreading its business in manufacturing as well.
Trident Financial Analysis
Looking at the financial performance, Trident is continuously expanding its business as well as maintaining good growth in sales and profit. Although till FY 2021, due to the business being badly affected due to the epidemic, the financials of the company were also seen to be affected, but as the effects of the epidemic subside, Trident continues to show good performance in its quarterly results.
If we see the debt burden on Trident, then the management seems to be reducing debt by a good amount every year, in the coming days, if Trident is seen reducing debt continuously, then it will be good for the company’s business and investors too.
Trident Future Prospectus
If the business of Trident is seen from the point of view of the future, then there is a huge opportunity for growth. Keeping in mind the innovation and future plans of the company, the company was seen investing Rs.1377 Crores continuously. The way Trident is working jointly on Expansion in each of its business segments, due to this the future bright of the company is visible in the coming time.
Trident makes the manufacturing of its product from the beginning to the end itself, due to which the company gets the most benefit from the lower cost of production. As the company will be seen expanding its business in the coming time, due to the low cost of its product, Trident has the ability to capture more and more market.
Risk of Trident Share
Looking at the biggest risk in Trident’s business, as the company’s revenue mostly comes from texttile business. In India, the textile company is mostly seen on medium valuation, due to which there is little hope of increasing the valuation in this sector. If the share price of Trident is to trade at a good price in future, then the company will have to increase the focus more on Net Profit continuously.
Trident is good share for buying
In the long run, Trident has been taking its business forward as a strong brand in its different product segments. In the coming years, as Trident will be seen making a strong hold in the domestic market as well as the international market, along with the growth of the business, you see full potential to show growth in the share price as well.
Also, in view of the increasing demand for its product, the company has launched Direct to Consumer Website, where customers will be able to buy their product directly. The way the company’s brand value is being strengthened for a long time, it can definitely be said that Trident is good share for buying.
There is no doubt that Trident Share is a fundamentally strong company for a long time. However, in terms of some valuations, it looks a bit expensive now. If you are a long-time investor, then you can wait a little and whenever a slight correction is seen in the share price, then you can think of buying this company in small amounts.
Hope you have got complete details analysis of the company by reading our post Trident is good share for buying Trident share fundamental analysis. If you have any thoughts about this company, then definitely ask in the comments. You can also read our other posts to stay updated with such important information related to share market.