Trident is the worlds largest terry towel manufacturer. It is also the worlds largest wheat-straw based paper manufacturer. This Punjab-based company founded by Mr. Rajinder Gupta around two decades ago, recently commissioned its massive unit in Budni, Madhya Pradesh, which is globally the largest standalone terry towels manufacturing facility. After establishing its leadership and firm footprint in terry towels, the company has now ventured ventured into bed linen.
For more info check, http://www.tridentindia.com/
NUMBERS - THE LATEST
Market cap: 2876 crores CMP on Day28 Aug2016: Rs 56.45 BV: 34.54
Revenue FY16: 3733 cr Net profit FY16: 228 cr FV: 10
POSITIVES
1. Trident has a well established global business, with clients across 100 countries. This company clearly thinks big, and is an excellent example of "make in india" recently popularized by PM Narendra Modi
2. Company has capacity to manufacture 360 million towel pieces and 7.5 million bed sheet sets per annum for the global market.
3. Paper manufacturing is a significant part of the business. Not only is it profitable, it is also innovative, and generates cash in a stable manner
4. Company recently incorporated a wholly-owned subsidiary in the UK to strengthen its marketing channels in Europe
INTERESTING INFO
1. Trident is a preferred supplier to some of the global retail giants like Walmart, JC Penny, IKEA and Target. It also supplies to large hotels like Taj and Oberoi.
2. Company has signed Kriti Shanon to endorse its new Bed and Linen collection. The company has brands in various quality and price categories.
3. In the printing paper business, it recently launched 'Trident Digiprint' a premium copier paper of 100 gsm.
4. A picture speaks a 1000 words. In the latest annual report, page 6 shows a picture of the Trident plant. Looks fantastic!
NEGATIVES - POSSIBLE RISKS
1. Company has long term borrowing of 2,136 crore. The increase in debt reflects directly in the substantial increase in the gross block of the company. However due to prudent steps, the finance cost has reduced 34% to 136 cr.
MY TAKE
Starting small in Punjab around 2 decades back, Trident has transformed from small operations to a formidable mid sized company. During the course of that journey, it has set up large manufacturing operations on a global scale, carved a niche position for itself in the global home textile market.
During the course of last couple of years, it has expanded its operations with a very substantial capex, entry into new product segments, and a platform for future growth. The company is well placed to move to the next level from a mid sized to a large size company.
The results were quite evident in the recent quarter financial results. Revenue increased 31% YoY. EBITDA increased 24% and EPS increased 25% (non annualized). Therefore the company is well placed to take off into the next phase of its journey.
Trident has good future potential to become a multibagger!!
Disclosure: I own shares in Trident.
For commercial collaboration, consultation and JV ideas;
you can contact me via zorbayogi9@gmail.com
Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 3 - 4 years or more. Short term volatality is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict. Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.
Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own analysis and make your own decisions.
For more info check, http://www.tridentindia.com/
NUMBERS - THE LATEST
Market cap: 2876 crores CMP on Day28 Aug2016: Rs 56.45 BV: 34.54
Revenue FY16: 3733 cr Net profit FY16: 228 cr FV: 10
POSITIVES
1. Trident has a well established global business, with clients across 100 countries. This company clearly thinks big, and is an excellent example of "make in india" recently popularized by PM Narendra Modi
2. Company has capacity to manufacture 360 million towel pieces and 7.5 million bed sheet sets per annum for the global market.
3. Paper manufacturing is a significant part of the business. Not only is it profitable, it is also innovative, and generates cash in a stable manner
4. Company recently incorporated a wholly-owned subsidiary in the UK to strengthen its marketing channels in Europe
INTERESTING INFO
1. Trident is a preferred supplier to some of the global retail giants like Walmart, JC Penny, IKEA and Target. It also supplies to large hotels like Taj and Oberoi.
2. Company has signed Kriti Shanon to endorse its new Bed and Linen collection. The company has brands in various quality and price categories.
3. In the printing paper business, it recently launched 'Trident Digiprint' a premium copier paper of 100 gsm.
4. A picture speaks a 1000 words. In the latest annual report, page 6 shows a picture of the Trident plant. Looks fantastic!
NEGATIVES - POSSIBLE RISKS
1. Company has long term borrowing of 2,136 crore. The increase in debt reflects directly in the substantial increase in the gross block of the company. However due to prudent steps, the finance cost has reduced 34% to 136 cr.
MY TAKE
Starting small in Punjab around 2 decades back, Trident has transformed from small operations to a formidable mid sized company. During the course of that journey, it has set up large manufacturing operations on a global scale, carved a niche position for itself in the global home textile market.
During the course of last couple of years, it has expanded its operations with a very substantial capex, entry into new product segments, and a platform for future growth. The company is well placed to move to the next level from a mid sized to a large size company.
The results were quite evident in the recent quarter financial results. Revenue increased 31% YoY. EBITDA increased 24% and EPS increased 25% (non annualized). Therefore the company is well placed to take off into the next phase of its journey.
Trident has good future potential to become a multibagger!!
Disclosure: I own shares in Trident.
For commercial collaboration, consultation and JV ideas;
you can contact me via zorbayogi9@gmail.com
Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 3 - 4 years or more. Short term volatality is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict. Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.
Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own analysis and make your own decisions.
