The rating agencies Credit Analysis & Research Ltd (CARE) and CRISIL upgraded the long-term and short term bank facilities of the Trident. On the upgradation Trident share price has rallied 6% to Rs 61.20 on NSE in intra-day trade, extending its Friday’s 6% gain.
CARE said in a release that the revision in ratings allocated to the bank facilities of Trident factors in the strong business performance that mirrored increasing profitability, healthy cash flows leading to adequate liquidity and improvement in its debts coverage parameters.
The upgrade mirrors CRISIL's conviction that Trident's business risk profile in the home textile business will get better over the medium term driven by increase in the utilization of the towels and newly established bed linen facility, as the risks related with project implementation have now subsided.
Meanwhile at 12:11 PM, Trident share price is trading at Rs. 59.20, up by over 3% aginst 0.67% decline in the Benchmark Index Nifty and 0.37% decline in BSE S&P Sensex
CRISIL believes that the home textile business growth together with stable contributions from the paper and yarn segments will lead to a strong revenue growth of over 20% in the financial year 2017 and at 1015% per annum over the medium term. The benefits of increasing the scale of operations, highly integrated manufacturing process in both home textiles and paper, and sustained access to low-cost raw material for paper division will guarantee healthy and sustained operating profitability at 1920% in the medium term.
The stock opened at Rs. 58 against its previous close price of Rs. 57.40. By 12:13 PM, Trident share price has traded on the intraday high of Rs. 61.25. The opening price of the scrip remained its intraday low. So far, almost 42 lakhs shares had changed hands over the NSE counter today. Trident is the top 500 stock pick of the quarter by Dynamic Levels. For the details on Trident, visit Trident share price history page of Dynamic Levels website.
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