Trident shares cooled off on Thursday, slipping 2%, after a sharp 16% rally in the previous session.
SEBI-registered analyst Jeet Bhayani identifies Trident as a potential accumulation opportunity, citing notable improvements in the company’s fundamentals.
Bhayani points to a notable rebound in March-quarter earnings, with net profit more than doubling year-on-year to ₹133.4 crore, aided by a substantial reduction in finance costs.
This comes after a dip in third-quarter sales, suggesting a positive turnaround in performance.
The company’s operating profit margin (OPM) has remained steady, indicating ongoing challenges in expanding margins. However, the reduction in long-term and short-term borrowings reflects a strengthened balance sheet and a strategic focus on debt repayment.
He highlights that over the past decade, cash flow from financing activities suggests a consistent effort to reduce debt within a year.
From a technical perspective, Bhayani notes that Trident has staged a sharp 43% recovery after a substantial 67% decline from its peak, and has recently broken above the 200-day Exponential Moving Average on the daily chart — a bullish signal.
He suggests that buying opportunities may arise either above ₹36, given resistance at ₹35.5, or on a retracement to the ₹31–31.5 zone, with targets of ₹45 and ₹50, and a stop-loss at ₹28 in both scenarios.
Beyond the charts, Trident’s diversified business model remains a key strength.
He highlights that the company is the world’s largest wheat straw-based paper manufacturer and leads North India’s branded copier segment.
It is also a major player in terry towels and home textiles, with the paper segment boasting the highest operating margin among key listed peers in India.
Trident is the second-largest exporter of home textile products from India and a prominent manufacturer of industrial and battery-grade sulphuric acid in the northern region.
Retail sentiment, however, remained ‘bearish’ on this counter amid ‘high’ message volumes.
Trident shares are down 2% year-to-date (YTD).
For updates and corrections, email newsroom[at]stocktwits[dot]com.