Trident Corporation is one of India’s leading textile companies, specializing in home textiles, yarn, wheat straw-based paper, and chemicals. The company has been in business for over two decades and has a presence in over 100 countries worldwide.
In this blog post, I will take a deep dive into Trident’s financial performance, analyze the industry trends and market conditions, and forecast the potential target price for Trident’s share target from 2023 to 2025.
What is the Target Price for Trident Shares by 2025
The current market price of Trident’s share is around Rs 30. with a market capitalization of over Rs 15, 405 crores. Based on our analysis, trident’s share price may return to its all-time high price level of Rs 60 by 2025.
To determine the potential target price for Trident shares by 2025, we need to conduct a thorough analysis of the company’s fundamental analysis, technical analysis financial performance, industry trends, and market conditions.
Fundamental Analysis of Trident Shares
The company’s growth prospects are promising, primarily driven by its home textiles segment, which accounts for over 60% of its revenue. Additionally, the company is focusing on expanding its product portfolio and strengthening its presence in key markets such as the US, Dubai, and Europe, which are expected to drive growth in the future.
According to experts, Trident’s net sales are expected to grow at a CAGR of 14.8% over FY23-25, driven by higher volumes and improved realizations. The report also mentions that Trident has a strong balance sheet with a net cash position of Rs 172 crore as of March 2022, which provides a cushion against any near-term volatility in the industry.
Trident’s growth prospects are promising. For instance, the company has delivered good profit growth of 19.9% CAGR over the last 5 years and maintained a healthy dividend payout of 45.0%.
The company has delivered a poor sales growth of 8.63% over the past five years against better profit growth.
To enhance your analysis, you can read our articles on Yes bank’s target share price, Tata Motor’s target share price, and IRCTC’s target share price by 2025 to find out quality choices if they fit your needs.
Technical Analysis of the Trident Stock
Trident’s share price has been trading in a range between INR 30-40 for about 1 year. The stock has formed a base around the INR 30-33 level and is expected to increase in the coming months.
The stock has also been trading below its 50-day and 200-day moving averages, indicating a bearish trend.
These indicators suggest that Trident’s stock price could continue to remain in the current price range in the near future. You can go through the best technical indicators for trading articles to understand important indicators to use in your technical analysis of a particular stock.
Industry Trends and Market Conditions that Could Impact Trident’s Share Price
The home textile industry is expected to grow at a CAGR of 6.2% during 2021-2026, driven by increasing demand for home decor and disposable incomes. The growth of e-commerce platforms and the rise of sustainable textiles are other factors driving the industry’s growth.
The paper industry is also witnessing growth due to increasing demand for packaging materials. The global market for paper packaging materials is expected to grow at a CAGR of 3.7% during 2021-2026.
Key factors that can impact Trident’s share price:
- Shift towards sustainable and eco-friendly products: There is a growing trend towards sustainable and eco-friendly products in the textile industry. Companies that are able to adapt to this trend and offer sustainable products could see increased demand and higher share prices.
- Increasing competition: The textile industry in India is highly competitive, with many established players and new entrants. Increased competition could pressure Trident’s sales and margins, leading to a decline in its share price.
- Economic conditions: The textile industry is closely linked to the broader economy, and any changes in economic conditions could impact Trident’s sales and profitability. For example, a slowdown in consumer spending could lead to lower demand for Trident’s products, while a strong economy could result in higher demand and a higher share price.
- Technological advancements: Advancements in technology, such as automation or artificial intelligence, could impact Trident’s operations and profitability. Companies that are able to adopt and utilize new technologies effectively could see higher margins and share prices.
- International trade policies: As a global exporter, changes in international trade policies could impact Trident’s sales and profitability. Any changes that result in lower demand or higher costs for the company could lead to a lower share price.
Trident Industries is a well-established textile company in India, with a strong presence in both the domestic and international markets. Based on our analysis, we believe that trident’s stock price may continue to grow in the coming years.
Price growth is not guaranteed, and you should carefully evaluate your investment goals and risk tolerance before making any decisions. We encourage readers to stay informed and engaged with Trident’s performance and market conditions to make informed investment decisions.
Frequently Asked Questions (FAQs)
Trident is one of the largest textile companies in India, with a strong market position and a diversified product portfolio. However, there are other large players in the industry, such as Welspun India, Raymond, and Arvind Limited.
Some of the growth prospects for Trident include expanding its product portfolio, increasing its presence in international markets, and investing in technology and sustainability initiatives.
Yes, Trident pays dividends to its shareholders on an annual basis.
As of the latest financial year 2021-22, Trident’s earnings per share (EPS) was INR 1.64
Some of the risks associated with investing in Trident shares include industry fluctuations, changes in economic conditions, competition, debt levels, and environmental or regulatory changes.
As of March 13, 2023, the market capitalization of Trident is approximately INR 15,405 crores.
The current dividend yield of Trident is 1.19%, which is the percentage of the company’s annual dividend compared to its current share price.
This is a decision that should be based on your individual investment goals, risk tolerance, and financial situation. We recommend you consult with a financial advisor before making investment decisions.
Based on our analysis of industry trends, market conditions, and Trident’s financial performance, we estimate that the potential target price for Trident’s share by 2025 is Rs 60 depending on market conditions.
The highest share price of Trident in the past years was Rs 70.35, recorded on January 18, 2022.
As of March 13, 2023, the current share price of Trident is Rs 30.2