Trident shares unbeaten rally extends to 29% in 7 sessions. Here’s why
Shares of Trident surged over 13% on Monday extending their gains to over 29% in a rally that has remained unbeaten over the last seven trading sessions.
The rally sparked after the company informed the exchanges that the company enhanced its existing capacity of the yarn business at the Budhni unit in Madhya Pradesh. The disclosure was made on December 29.
The company has extended the capacity by 189,696 spindles at an investment cost of Rs 830 crore which it did through term loan and internal accrual, the filing said.
The existing capacity of the company now is 589,248 spindles, 7464 rotors, and 160 Air Jet with capacity utilisation at 82%, the company filing said.
The price action was accompanied by strong volume action as more than 18.16 crore shares were trading on the NSE around 10:50 am. On the BSE, the volume saw a spurt of 6.91 times. The traded value of the share stood at Rs 812.04 crore around this time.
Its 52-week low stands at Rs 25.05 which it hit on March 27, 2023.
The company which started from Punjab now boasts of customers from across 100 countries. Trident has an annual revenue of over Rs 6,200 crore and offers a wide range of products in categories of home textiles, stationery, paper, yarn, and chemicals.
With today's price action, the stock is now trading in the overbought zone.
The day's MFI and RSI are hovering around 76 and 82 according to data revealed by Trendlyne.
Trident shares have given returns of nearly 40% in the last one year which is double the returns given by Nifty 50 during this period. The stock is currently trading above its 50-day and 200-day simple moving averages (SMAs) and has displayed stability.
