Trident shares down 9% after Q4 profit declines 28% YoY

Shares of textile fabric manufacturer Trident tumbled nearly 9% to Rs 31.6 in Thursday's trade on BSE after the firm reported a net profit of Rs 129.7 crore in Q4FY23, registering a decline of 28.4%, compared to Rs 181 crore in the corresponding quarter last year.

Its revenue from operations for the March quarter stood at Rs 1,573.2 crore, posted a drop of 15.9%, compared to Rs 1,869.8 crore in the year-ago period.

On the operating front, the company's EBITDA for the fourth quarter came in at Rs 268.4 crore, registering a decline of 20.5%, compared to Rs 337.6 crore in the year-ago period.


The board also recommended raising funds for Rs 500 crore by the issue of non-convertible debentures (NCDs), by way of a public or private offering, in one or more tranches, upon the approval of shareholders.

The company's board also declared the first interim dividend of Rs 0.36 per fully paid-up equity share of Re 1 each for the financial year 2023-24.

Trident operates in the segments of home textiles, yarns, papers, and energy. Revenue from its yarn segment fell 34%, while the towel and bedsheets businesses posted approximate declines of 3% and 4%, respectively. However, the company’s paper and chemicals arm rose by 22%.

At 12.20 pm, the scrip was trading 5.8% lower at Rs 31.7 on BSE. In the last year, the stock has declined 28%.

As per Trendlyne data, the average target price of Trident is Rs 40, which shows an upside potential of 26% from the current market prices. The consensus recommendation from two analysts for the stock is a Strong Buy.

Technically, the day RSI (14) is at 64.9. The RSI below 30 is considered oversold and above 70 is overbought, Trendlyne data showed. MACD is at 0.9, which is above its center and signal Line, a bullish indicator.

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