Trident shares rise over 19%, rally 29% in seven days; here’s why
- Trident stock gained over 29% in the last seven trading sessions.
Trident share price rose 19.39% on Monday, surged to ₹49.05 per share, against previous close at ₹40.90 on Friday last week. The stock gained over 29% in the last seven trading sessions.
The surge in market enthusiasm ensued following the company's announcement to the stock exchanges regarding the expansion of its current yarn business capacity at the Budhni unit in Madhya Pradesh. This disclosure was made on December 29.
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The company augmented its capacity by 189,696 spindles, incurring an investment cost of ₹830 crore, financed through a combination of term loans and internal accruals, as stated in the filing. The company's updated capacity now stands at 589,248 spindles, 7464 rotors, and 160 Air Jets, with a utilization rate of 82%, according to the company filing.
The price movement was accompanied by robust trading activity, with over 18.16 crore shares being exchanged on the NSE around 10:50 am. On the BSE, the volume witnessed a surge of 6.91 times. At this juncture, the traded value of the shares amounted to ₹812.04 crore. The stock's 52-week low, recorded on March 27, 2023, is ₹25.05.
Originating from Punjab, the company has expanded its reach to encompass customers spanning 100 countries. Trident, with an annual revenue exceeding ₹6,200 crore, offers a diverse array of products across categories such as home textiles, stationery, paper, yarn, and chemicals.
Following today's price movement, the stock has entered the overbought territory. As per data disclosed by Trendlyne, the day's Money Flow Index (MFI) and Relative Strength Index (RSI) are approximately 76 and 82, respectively.
Trident shares have yielded impressive returns of nearly 40% in the past year, which is twice the returns offered by the Nifty 50 during the same period. Currently, the stock is trading above both its 50-day and 200-day Simple Moving Averages (SMAs), indicating stability. According to Trendlyne data, its 1-year beta is recorded at 0.6.
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