Secret Behind Trident’s Stunning Stock Rally: Walmart, Winter and Festivity

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Stuck for 1 year, the reason for the rise in Trident stock has been found

Trident Limited is a textile sector company that has been trading in the stock market for over three decades. The company manufactures and exports yarns, terry towels, paper and chemicals to more than 75 countries, including the US, Europe, Australia and New Zealand. However, the company’s stock price has been stuck at the same level for about a year, until recently when it registered a sudden boom. What is the reason behind this surge in Trident share price? Let’s find out.

Trident share company performance

Trident Share company has a market cap of 19,390.11 crores and a debt of 1,374.11 crores, leaving it with a free cash availability of 351.64 crores. The company’s promoter holding is 73.19%, which shows a strong commitment from the management. However, the company’s sales growth and profit growth have been negative in the last year, at -9.42% and -48.23% respectively.

The company’s 52-week high level was ₹41 and the 52-week low level was ₹25. Currently, the company is trading at ₹38 with more momentum. The company has given -5% CAGR returns in the last 1 year, 74% CAGR returns in the last 3 years and 40% CAGR returns in the last 5 years.

Reasons for Trident share price stagnation

The main reason for the lack of movement in Trident share price for a year was the poor HR management of the company, which led to frequent labor unrest and strikes at its plants. This affected the production and quality of its products, resulting in lower sales and profits.

Another reason was the impact of inflation and currency fluctuations in its export markets, which reduced the demand and profitability of its products. The company also faced stiff competition from other textile players in India and abroad, who offered better quality and prices.

Reasons for Trident share price rally

The recent rally in Trident share price was triggered by several positive factors that boosted the outlook of the company. One of them was the announcement by Walmart, the world’s largest retailer, that it would source more textile products from India, especially from sustainable and organic sources. This opened up a huge opportunity for Trident share company, which has a strong presence in the global textile market and has been investing in green initiatives.

Another factor was the onset of the winter season and festive season in its export markets, which increased the demand for its products such as terry towels, bed sheets, and blankets. The company also benefited from the recovery of the Indian economy after the pandemic, which improved its domestic sales and margins.

The company also announced some strategic initiatives to improve its operational efficiency and profitability, such as expanding its capacity, diversifying its product portfolio, reducing its debt and increasing its dividend payout.

Conclusion

Trident share company is a well-established textile player that has been facing some challenges in the past year due to internal and external factors. However, the company has shown resilience and adaptability to overcome these hurdles and capitalize on new opportunities. The recent surge in its stock price reflects its improved performance and prospects. The company is expected to continue its growth trajectory in the coming years and reward its shareholders with consistent returns.

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