Shares of Trident Go Up 20% in a Week Because of Capacity Expansion – What’s Next for the Textile Major?

Dhaneshwar Prasad

Recently, Trident Limited’s share has been going crazy. It has gone up 20% in the last week and hit a new 52-week high of ₹49 on Monday. The rise comes after a big news about expanding capacity, which seems to have gotten investors really excited.

But after the strong rise, the stock is now in overbought territory. Is there still some steam left or is a correction on the way? Let’s look more closely at what caused the rise and where Trident might go next.

What Propelled the Price Surge?

On December 29, Trident told the share market that a big project to increase its capacity worth ₹830 crore was finished. With these extra 189,696 spindles, the company’s spinning section can now handle a total of 589,248 spindles.

Trident’s long-term goal is to increase its presence in the fast-growing home textiles market while also taking advantage of possibilities in export markets.

The stock has gone up about 20% in the last week on heavy trading because of the positive prospects. Over 18 crore shares have been traded on NSE so far on Monday, making it a very busy day for dealing.

But Where Next for Investors?

Given that technical signs are very overbought, some profit taking is likely to happen in the near future. On Monday, both the Money Flow Index and the Relative Strength Index were above 75, which means that it’s time for a cooling off.

But there are a number of good reasons why Trident is a good long-term investment.

In the past year, the company has given 40% returns, while Nifty has only given 20% returns. The stock also moves above its 50-day and 200-day moving averages, which shows that the bullish trend is likely to continue.

Also, Trident is well-equipped to handle growth thanks to its strong cash flows, healthy balance sheet with low debt, large global presence in over 100 countries, and wide range of products, including linens, paper, and chemicals.

Trident Financials History for Last 4 Years


PeriodMar 2023Mar 2022Mar 2021Mar 2020
Total Revenue6,332.266,997.664,530.624,727.67
Selling/ General/ Admin Expenses Total1,122.731,236.65973.291,014.29
Depreciation/ Amortization312.77332.80342.02333.69
Other Operating Expenses Total23.9915.987.0518.02
Total Operating Expense5,698.805,835.054,077.714,229.49
Operating Income633.461,162.61452.91498.18
Net Income Before Taxes579.061,116.46398.44421.04
Net Income440.74833.75304.39339.70
Diluted Normalized EPS0.881.670.660.68
Data Credit: Livemint | *All figures in crores except per share values

Balance Sheet

PeriodMar 2023Mar 2022Mar 2021Mar 2020
Total Assets6,828.746,489.135,771.655,776.48
Total Liabilities2,636.112,644.452,443.332,755.08
Total Equity4,192.633,844.683,328.323,021.40
Tangible Book Valueper Share Common Eq8.157.476.445.98
Data Credit: Livemint | *All figures in crores except per share values


PeriodMar 2023Mar 2022Mar 2021Mar 2020
Cashfrom Operating Activities1,431.40902.58504.931,213.70
Cashfrom Investing Activities-1,165.34-343.31-154.92-42.68
Cashfrom Financing Activities-410.38-386.88-570.21-862.37
Net Changein Cash-144.32172.39-220.20308.77
Data Credit: Livemint | *All figures in crores except per share values
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Former Sony professional turned multi-business owner and stock investor, Dhaneshwar leverages his MBA to produce market, IPO and biz content and personal investments on
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