Buy Trident; target of Rs 81: Motilal Oswal

Motilal Oswal's research report on Trident

TRID's revenue increased 18.5% YoY to INR14.1b (our estimate: INR13.4b) in 4QFY19. EBITDA margin shrank 20bp YoY to 18.1% (our estimate: 18.1%). EBITDA adjusted for forex gain increased 17.2% YoY to INR2.5b (our estimate: INR2.4b). Adj. PAT was up 64.3% YoY to INR895m (our estimate: INR873m). For FY19, consol. revenue grew 15.1%, with the margin expanding 210bp to 20.1%. Consol. adj. PAT increased 71.2% in the year.

Outlook

We maintain our estimates for FY20/21 and value the stock at 8x FY21E EPS (in line with its one-year forward P/E over the last five years) to arrive at a target price of INR81 (+26% upside). Maintain Buy.