Thread by @LnprCapital

Trident Ltd Analysis !!
#Trident

A detailed #Thread below 🪡🧵
#StockMarket #Investing

About -

In the early years of the great Indian economic liberalisation when India had stepped on the economic accelerator Padma Shri Rajinder Gupta, sowed the first seeds of industry on the fertile lands of Punjab. It was the birth of Trident Group.

Today Trident have become the largest manufacturer of terry towels & one of the largest integrated home textile mfg. in the world.
They have travelled far beyond being a home textile manufacturer, by successfully diversifying into paper, chemicals, energy & more.

Financial Summary -

Rev were at ₹1984 Cr ⬆️52%
PAT at ₹211 Cr ⬆️88%
EPS at ₹0.42 ⬆️ 91%

Revenue Breakup -

Trident earns
84% of it's revenue from Textile &
16% from Paper & Chemicals.

▪️Home textile:

Trident has acquired wide & varied global scale capabilities in terry towel & bedsheet production. Co has partnered with some of the global-best technology companies to strike a rare mix of quality with cost-efficiency in its products.

Home textile clientele👇

Some of the products in home textile are Comforters, Solid/ Printed Sheets, Decorative pillows, etc.

▪️Paper segment:

Trident is the world's largest manufacturer of wheat straw-based paper, also the first mill in the world to use ECF bleaching & oxygen
delignification on wheat straw. Products includes Branded copiers, Maplitho paper, Bible & offset printing paper

Clientele👇

▪️Chemicals:

Trident is one of the largest commercial and battery-grade sulphuric acid manufacturer in North India. It caters to the diverse
battery requirements & finds usage in the production of zinc sulphate, alum, detergent, dye & fertilizers.

Industry Overview -
(Textile)

Despite the slowdown due to the pandemic, sales in the
online textile & apparel industry witnessed a jump in
various cities and states of India.
The market is
expected to grow at 6% CAGR to reach $ 821.7 billion by 2025.

(Paper segment)

India ranks 15th among paper manufacturing nations in
the world.
Paper consumption
in India, approximately 15 million tons p.a., is
expected to touch 23.5 tons p.a. by 2025 & predicted to increase by 7.6% per year.

(Chemical)

India is the 6th largest producer of chemicals in the world.
The Indian chemicals industry stood at $178 billion in 2019 & expected to reach $304 billion by 2025 registering a CAGR of 9.3%.

Long Term Triggers -

• Leadership position in home textile which fuel growth.

• India has strengthened its position as an alternative to China in home textile industry.

• India's export of terry towel to the US has remained an oligopoly market over
the last decade, where Welspun India & Trident accounts to 80% of India's exports of terry towel to the US.

• Trident gets nod under PLI scheme for manufacturing of textiles products by the govt.

Risks -

• Raw Material Risk - Trident uses cotton and wheat straw,
respectively as raw materials. Production
may be impacted due to unavailability, limited
availability or price volatility of these raw
materials.

• Currency Risk - Having a strong international business, co is exposed to foreign currency
fluctuation risk.

• Competition Risk - Low-cost imports due to favorable govt
policies in other countries, may pose significant
risk to business and impact pricing strategy.

Conclusion -

Trident is to benefit from its diversified business streams, healthy demand prospects for home textiles & established business position across product segments. Operating profitability is also expected to remain healthy due to strong operating efficiencies.

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