Promoter buys over 1.23 cr equity shares in Trident via block deal

Leading textile fabric manufacturer, Trident witnessed a sharp selloff on Monday due to large deals on NSE. Trident Limited Employees Welfare Trust has offloaded a whopping more than 1.23 crore equity shares in Trident through a block deal, aggregating to around ₹31.89 crore. Promoter Madhuraj Foundation bought these shares in the open market.

As per NSE data, in a block deal on March 27, Trident Limited Employees Welfare Trust sold 123,85,000 equity shares in Trident at a price of ₹25.75 per equity share --- amounting to ₹31.89 crore.

In the same block deal, Madhuraj Foundation purchased the same 123,85,000 equity shares at ₹25.75 apiece.

Madhuraj Foundation is among the promoters of Trident. As of December 31, 2022, as per Trident's shareholding pattern, Madhuraj held over 137.06 crore equity shares or 26.9% in Trident.

On NSE, Trident's share price closed at ₹25.35 apiece on Monday down by 6.5%. Earlier, in the day, the stock touched a fresh 52-week low of ₹25.05 apiece on the exchange.

The stock stood at ₹27.10 apiece last week on Friday.

Motilal Oswal has given a 'Buy' recommendation on Trident for a target price of ₹40.

Last month, in a report, JM Financial said that Trident continues to remain well placed as structural drivers of increased market share in the US, US ban on Xinjiang imports, duty reimbursement by GOI and market share gain on China+1 theme are likely to drive earnings going forward. Further, FTAs with UK/EU over time could likely increase the addressable market size, boding well for the company. Near term demand environment for textile segment is expected to remain muted given recessionary fears and inventory pile-up at retailer levels.

While maintaining Buy, JM Financial also set a target price of ₹40 for the company.

In February 2023, the company recorded 3,312 metric tons of bath linen, 2.77 million metres of bed linen, and 7,575 metric tons of yarn. In the paper and chemicals dividend, the company produced 11,949 metric tons of paper and 8,356 metric tons of chemicals.

During Q3 of FY23, the company posted a net profit of ₹1,420 million down by 32.1% YoY, while total income stood at ₹16,247 million declining by 17.2% YoY.

Trident is the flagship Company of Trident Group, an Indian business conglomerate and a global player. Headquartered in Ludhiana, Punjab, Trident is vertically integrated textile (Yarn, Towel & Bedsheets) and Paper (Wheat Straw-based) manufacturer.