KR Choksey's research report on Trident
Trident has been operating under two segments namely (i) Home textile (ii) Paper. Under home textile segment, it has been selling towel and bed linen. With increase in the demand outlook for bed linen, the company has increased capacity from 5.4mn meters in FY16 to 43.2mn meters in FY17. The utilization for the same has been at 29% in FY17.
Outlook
We believe, the valuations are attractive given the industry peers such as Indo count and Welspun trading at 12.5x & 10.8x FY19 estimates. Further, aforementioned rationales favor for the robust financial growth and hence assigning a p/e multiple of 11x on FY19, we have arrived a target price of INR 115, a potential upside of 39% from CMP 83. We recommend a BUY rating on the stock.
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