5 lakhs became 30 lakhs, this stock gave about 500 percent return in one year

Multibagger Stock: The shares of Trident Limited have given nearly 500 per cent returns to its shareholders in the last one year. The stock rose 5 per cent to hit a new 52-week high of Rs 45.2 on the Bombay Stock Exchange (BSE) on Thursday.

It has been rising for the last three trading sessions and has gained 16 per cent during this period. In the last one year, the share price has increased from Rs 7.56 to Rs 45.20, giving a return of around 497 per cent in this period. An amount of Rs 5 lakh invested in this multibagger stock a year ago would have turned into Rs 30 lakh today.

357 percent jump this year
Its stock has jumped about 357 per cent since the beginning of this year. With a market capitalization of over Rs 23,000 crore, the shares are trading above 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Trident Ltd. reported a net profit of Rs 234.59 crore for the quarter ended September 2021, as against a net profit of Rs 105.69 crore in the year-ago quarter. The company’s net sales grew 44 per cent to Rs 1,691.59 crore during the quarter.

Brokerage house Motilal Oswal said that after the lifting of lockdown restrictions related to COVID-19, there is a strong demand for Trident. The demand trend in home textiles is expected to continue, with freight costs gradually coming down and demand subdued in the US and Europe markets. The paper segment is expected to see a sharp recovery with the opening of offices and educational institutions.

Motilal Oswal said, “Management has taken several initiatives to reduce its debt, including prepayment of high cost loans, reduction in working capital through retention of cash accruals, other measures to reduce CTC cycle and Including building your cash reserves.”

Brokerage firm gives ‘Buy’ rating
Motilal Oswal said, “We maintain our FY22 earnings estimates. We increase our FY23E/FY24E earnings estimates by 11/22 per cent. At the same time we maintain our ‘Buy’ rating.”

According to Marketsmojo, the company has declared positive results for the last 4 consecutive quarters and has strong debt servicing ability as the company has a low EBITDA ratio of 1.08 times.

The stock is technically in a bullish range right now and many factors MACD, Bollinger Bands, KST and Dow are also bullish for the stock.

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