Trident, the Ludhiana headquartered manufacturer of home textile and wheat straw based paper has received a by rating by analysts at Motilal Oswal. The home textile business contributed nearly 82% of overall revenue. According to Niket Shah, an analyst working with Motilal Oswal, the copier paper is among the top selling brands in India and commands higher margins. Copier paper contributed 45% of paper sales volume in FY13, which increased to 60% in FY17.
Trident recently ventured into bed liner, with installed capacity of 43 m meters. In the first year of operations, bed linen had 29% utilization, and the company expects to ramp-up operations by adding new clients.
Shah suggests that TRID is set ot benefit from multiple factors, besides a projection of 9% sales CAGR and 24% PAT CAGR over FY17-20. It has been suggested a buy rating with a target price of Rs 114. Currently the scrip is trading at Rs 86.30 on the intraday in BSE.
