17 May 2021
4QFY21 Results Update | Sector: Textiles
Trident
Estimate change
TP change
Rating change
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Financials & Valuations (INR b)
Y/E Mar
2021
2022
Sales
45.3
57.2
EBITDA
8.2
11.1
PAT
3.3
5.3
EBITDA (%)
10.6
13.1
EPS (INR)
0.7
1.1
EPS Gr. (%)
3.2
60.9
BV/Sh. (INR)
6.7
7.6
Ratios
Net D/E
0.4
0.4
RoE (%)
10.4
14.9
RoCE (%)
7.7
11.5
Payout (%)
5.9
10.0
Valuations
P/E (x)
24.2
15.1
EV/EBITDA (x)
11.5
8.6
Div Yield (%)
0.2
0.7
FCF Yield (%)
1.0
0.3
TRID IN
4,978
82 / 1.1
19 / 4
13/102/170
243
CMP: INR16.1
TP: INR18.4 (+15%)
Buy
Growth momentum continues; order book visibility improves
Revenue in-line; EBITDA/PAT below estimates
Trident (TRID) reported a strong performance on the back of demand revival
in the Home Textiles and Paper segments. The demand trend in Home
Textiles is expected to continue in the upcoming quarters as well, led by
order book visibility for the next six months. However, demand revival in the
Paper segment has been impacted by the second COVID wave. Recovery is
expected in the coming quarters as offices and educational institutions start
to open up.
Although the performance was below our estimates, we maintain our
earnings estimates for FY22/FY23 on an improving demand outlook.
Maintain
Buy.
2023
64.8
12.6
6.6
13.6
1.3
23.3
8.8
0.2
16.0
12.7
10.0
12.2
7.2
0.8
12.1
Bath and Bed Linen revenue up 52% and 109% YoY, respectively
Shareholding pattern (%)
As On
Promoter
DII
FII
Others
Mar-21 Dec-20 Mar-20
73.0
73.0
71.1
0.9
0.9
1.0
3.6
3.6
2.1
22.4
22.5
25.9
TRID reported standalone revenue of INR13.5b (est. INR13.8b), up 36% YoY.
EBITDA margins expanded 330bp to 16.8% on operating leverage. EBITDA
margins expanded despite gross margin contraction of 155bp to 54.1%. 4Q
EBITDA, adjusted for forex gains, was up 69% YoY to INR2.3b (est. INR2.6b).
Consequently, adj. PAT grew 3.4x YoY to INR976m. On a QoQ basis,
revenue/PAT grew 5%/3%, whereas EBITDA declined 4%.
FY21 consolidated revenue/EBITDA de-grew 4%/2%, whereas adj PAT grew
3% YoY. The company generated CFO of INR5b in FY21 v/s INR12.1b last
year; higher inventory and trade receivables led to lower CFO.
Textiles revenue was up 46% YoY (+2% QoQ) to INR11.3b, with EBIT margins
expanding 700bp YoY (-300bp QoQ) to 9.8% (after forex adj). Capacity
utilization in 4QFY21 in Bath and Bed Linen stood at 61% (v/s 62% in
3QFY21) and 92% (v/s 101% in 3QFY21), respectively. On a QoQ basis,
overall segmental revenue grew 2%, while EBIT declined 21%.
Paper and Chemicals revenue grew 2% YoY (+20% QoQ) to INR2.2b, with the
EBIT margin expanding 80bp YoY (+650bp QoQ) to 27.8%. Capacity
utilization in the Paper segment stood at 92% (v/s 87% in 3QFY21). On a
QoQ basis, overall segmental revenue/EBIT was up 20%/56%.
Net debt stood at INR14.2b as of Mar’21 v/s INR16.1b as of Mar’20.
The Home Textiles segment has sustained the demand momentum in the
current quarter, with Bath and Bed Linen segments posting revenue growth
of 52% and 109% YoY, respectively. Exports had a robust 64% contribution
to the total revenue for the quarter.
The yarn project has been proposed at a total cost of INR11.4b, with the
implementation happening under three phases. However, the company has
decided to go ahead with the implementation of a single phase only, which
is near completion; it would review the capex in due course, in line with the
strategic plan to achieve ‘Vision 2025’.
Highlights from press release
Sumant Kumar - Research Analyst
(Sumant.Kumar@MotilalOswal.com)
Research Analyst: Darshit Shah
(Darshit.Shah@motilaloswal.com) /
Yusuf Inamdar
(yusuf.inamdar@motilaloswal.com)
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
Trident
Valuation and view
Work-from-home in most of the big cities across the world has contributed to
the demand revival of home textile products – with people spending more on
home improvement products, as homes have been converted into primary
workplaces. Demand revival has been further supported by government
stimulus, with the consumer focus largely on health and hygiene.
TRID saw strong demand for Home Textiles in 4QFY21, and the trend is expected
to continue in FY22, driven by strong demand from global retailers; the
company has order book visibility for the next six months.
Although the performance was below our estimates, we maintain our earnings
estimates for FY22/FY23 on an improving demand outlook.
We value the company at 14x FY23E EPS and arrive at TP of INR18.4. Maintain
Buy.
(INR m)
Var
(%)
-2
-13
Standalone - Quarterly Earnings Model
Y/E March
Net Sales
YoY Change (%)
Total Expenditure
EBITDA
Margins (%)
Depreciation
Interest
Other Income
PBT before EO expense
Extra-Ord expense
Forex (gain)/loss
PBT
Tax
Rate (%)
MI & P/L of Asso. Cos.
Reported PAT
Adj PAT
YoY Change (%)
Margins (%)
1Q
13,053
15.4
10,143
2,911
22.3
846
325
78
1,817
0
-18
1,835
603
32.8
0
1,232
1,215
107.6
9.3
FY20
2Q
3Q
13,219 10,817
-5.0 -16.2
10,692 9,416
2,527 1,401
19.1
12.9
849
822
271
234
37
97
1,445
441
0
0
-26
-39
1,470
480
99
61
6.8
12.8
0
0
1,371
419
1,345
380
24.1 -65.9
10.2
3.5
4Q
9,905
-29.5
8,562
1,343
13.6
815
278
68
317
0
-109
427
31
7.3
0
396
286
-69.1
2.9
1Q
7,079
-45.8
5,898
1,181
16.7
824
231
54
181
0
49
132
31
23.5
0
101
150
-87.7
2.1
FY21
FY20
FY21
FY21
2Q
3Q
4Q
4QE
11,714 12,899 13,500 46,995 45,193 13,789
-11.4
19.3
36.3 -10.0
-3.8
39.2
9,467 10,545 11,229 38,813 37,139 11,169
2,247 2,355 2,271 8,182 8,054 2,620
19.2
18.3
16.8
17.4
17.8
19.0
831
830
880 3,333 3,365
830
123
132
234 1,108
720
170
32
50
26
280
162
64
1,325 1,443 1,184 4,020 4,132 1,684
0
-570
304
0
-266
0
9
-27
-85
-192
-54
0
1,316 2,040
964 4,212 4,451 1,684
313
443
208
794
994
424
23.8
21.7
21.5
18.9
22.3
25.2
0
0
0
0
0
0
1,002 1,598
756 3,418 3,457 1,260
1,012 1,000
976 3,226 3,138 1,260
-24.8 163.5 240.8 -13.0
-2.7 218.6
8.6
7.8
7.2
6.9
6.9
9.1
-23
Key Performance Indicators
Y/E March
1Q
Segment Revenue Gr. (%)
Textiles
Paper
Cost Break-up
RM Cost (% of sales)
Staff Cost (% of sales)
Other Cost (% of sales)
Gross Margins (%)
EBITDA Margins (%)
EBIT Margins (%)
15.5
15.1
43.9
11.4
22.4
56.1
22.3
15.8
FY20
2Q
-4.3
-8.2
46.3
11.3
23.3
53.7
19.1
12.7
3Q
-17.7
-10.3
47.8
13.4
25.8
52.2
12.9
5.3
4Q
-31.4
-21.9
44.3
14.1
28.0
55.7
13.6
5.3
1Q
-44.6
-50.7
44.7
13.9
24.7
55.3
16.7
5.0
FY21
2Q
-9.4
-20.6
43.5
12.6
24.7
56.5
19.2
12.1
2020
3Q
30.4
-21.6
44.9
12.7
24.2
55.1
18.3
11.8
4Q
45.7
2.1
45.9
12.5
24.8
54.1
16.8
10.3
-10.5
-7.5
45.6
12.4
24.6
54.4
17.4
10.3
1.0
-23.7
44.8
12.8
24.6
55.2
17.8
10.4
FY21
17 May 2021
2
 Motilal Oswal Financial Services
Trident
Key exhibits
Exhibit 1: Revenue trend
Revenue (INRm)
18% 19% 15%
-5% -16%
-30%
-11%
-46%
Growth (%)
19%
36%
18.7% 18.1%
Exhibit 2: EBITDA margin trend
EBITDA (INRm)
22.3%
19.1%
12.9% 13.6%
16.7%
Margin (%)
19.2% 18.3%
16.8%
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 3: Adj. PAT trend
PAT (INRm)
87%
Growth (%)
164%
55%
21%
241%
-18%
1,345
-56%
380
-67%
286
-88%
150
-25%
855
877
1,215
1,012
1,000
976
Source: Company, MOFSL
Exhibit 4: Textiles – revenue trend
Textiles Revenue (INRm)
25%
19%
17%
15%
-4%
-18%
-9%
-31%
-45%
5,857
9,908
11,078 11,319
Growth (%)
30%
46%
11,433 10,323 11,315 10,574 10,941
8,494
7,767
Source: Company, MOFSL
17 May 2021
3
 Motilal Oswal Financial Services
Trident
Exhibit 5: Textiles – EBIT and EBIT margin trend
Textiles EBIT (INRm)
13.6%
7.9%
8.1%
13.2%
10.2%
1.1%
1,549
813
916
1,398
1,111
96
2.9%
222
3.1%
180
1,159
1,418
1,115
Margin (%)
11.7%
12.8%
9.8%
Source: Company, MOFSL
Exhibit 6: Paper – revenue trend
22%
16%
25%
Paper Revenue (INRm)
15%
-8%
-10%
-22%
-51%
2,484
2,592
2,740
2,481
2,279
2,325
2,140
1,223
1,809
1,824
2,184
-21%
-22%
Growth (%)
2%
Source: Company, MOFSL
Exhibit 7: Paper – EBIT and EBIT margin trend
Paper EBIT (INRm)
37.3%
38.1%
37.0%
39.7%
36.5%
Margin (%)
30.3%
27.0%
27.5%
27.0%
21.3%
27.8%
928
987
1,014
985
833
704
578
337
489
389
608
Source: Company, MOFSL
17 May 2021
4
 Motilal Oswal Financial Services
Trident
Press release highlights
Home Textiles
Paper
The global Home Textiles market was largely driven by demand from the US and
Europe – which constitute 60% of home textile imports. Domestic organized
players faced competition from countries such as China, Pakistan, Vietnam, etc.
COVID led to disruption in manufacturers’ operations and the slowing of
demand in both India and export markets.
Although orders/sales started to pick up by end-1QFY21, the Home Textiles
industry witnessed strong demand revival in 2QFY21. This was attributable to
high demand from major retailers (selling essentials) – that saw their inventory
pipelines run dry due to the huge demand buildup on account of COVID-19.
Work-from-home in most of the big cities across the world has contributed to
the demand revival of home textile products – with people spending more on
home improvement products, as homes have been converted into primary
workplaces.
India’s share in US cotton sheets increased in overall percentage terms to 60%
as of Mar’21. On the contrary, China and RoW have lost around 8% share since
CY20. In the Terry Towel segment, India’s share had edged up to 43% as of
Mar’21, against 42% in CY20.
Cotton
Currently, mills manufacturing writing printing paper are operating at 70–90% of
installed capacity.
60% of writing printing paper demand is directly/indirectly dependent on the
Education sector, which is expected to normalize in FY22. Another demand
driver is low consumption per capita – going forward, the domestic requirement
is expected to be 5.2mmt.
Pricing, vis-a-vis FY20 rates, is down approximately 22–25% (dependent on the
demand-supply scenario). Global consumption is low currently, and due to
various inter-related factors, major global manufacturers are still unable to
utilize their full capacity.
With the projected increase in consumption and import policy optimization,
volumes and realizations are expected to improve in the coming quarters –
barring the severe impact of COVID-19.
Cotton consumption in FY22 is likely to be impacted by the ongoing COVID
pandemic and resultant lockdowns in most states. Estimated consumption for
the current crop year, however, is now higher by 6.5m bales vis-à-vis the
previous year’s consumption estimate of 25m bales of 170kgs each.
Cotton imports:
The estimate for cotton imports to India has been retained at
1.1m bales of 170kgs each. Import estimates for the FY21 crop year are now
down by 0.45m bales of 170kgs each (from 1.55m bales of 170kgs each
estimated for the FY20 crop year).
Xinjiang cotton:
The US ban on products made from cotton obtained from
China’s Xinjiang region – given that one-fifth of the world’s cotton comes from
the region – would further impact cotton prices going forward. Other cotton-
supplying countries may also face additional pressures.
17 May 2021
5
 Motilal Oswal Financial Services
Trident
Capex
The yarn project has been proposed at a total cost of INR11.4b, with the
implementation happening under three phases. However, the company has
decided to go ahead with the implementation of a single phase only, which is
near completion; it would review the capex in due course, in line with the
strategic plan to achieve ‘Vision 2025’.
The company has decided not to go ahead with the paper upgrade project,
proposed at a total cost of INR2.22b, for the time being. A decision regarding its
implementation would be taken at a later stage when the market condition
improves.
Additionally, the management has approved the diversification of business
operations under the Chemical Segment for the production of Detergent
Powder (with a capacity of 10mt/day).
Vision 2025
The company has unveiled ‘Vision 2025’, under which its three BHAGs (Big,
Hairy, and Audacious Goals – pronounced Bee-Hags) have been formulated,
aimed at unlocking long-term sustainable value for its shareholders.
It aims to achieve revenue of INR250b by 2025, with a 12% PAT margin.
It aims to make brand Trident a national brand.
Digital Trident – By completing the journey of Industry 4.0
‘Vision 2025’ shall accelerate the growth momentum, thereby placing the
company in an upward trajectory and adding value/growth to shareholders and
business associates. The company has appointed business advisory and
consulting organizations to collaborate on this journey. TRID has frequent
discussions with its advisors and is exploring various options and strategies to
make this happen. The company has shortlisted the following imperatives to
achieve Vision 2025:
Growing the core business
– It would capitalize on the recent growing retail
trends in online and offline brands.
Expanding its presence in Digital & Industry 4.0
– This comprises focusing on
IOT, blockchain, and digitalization.
Developing robust processes and organization
– It aims to boost efficiency and
simplify and automate processes.
Building new businesses
– It intends to diversify, build, and grow new
businesses.
The company would prioritize these imperatives to achieve Vision 2025 and give
its investors timely updates.
Others
Currently, India enjoys status as a GSP beneficiary, whereas Pakistan has been
awarded the GSP+ status. Generally, EU reviews Pakistan’s GSP+ status once
every two years (due in 2022); however, the EU has recently passed a resolution
to move up the review date of Pakistan’s GSP+ status. That said, if the status is
withdrawn, exports from Pakistan would attract ~20% import duty on entering
the EU. This provides enormous potential for India’s home textile players.
The average negotiated rate for the current quarter is INR74.21 per USD. The
average forward hedged rate for FY22 is around INR75.81 per USD.
17 May 2021
6
 Motilal Oswal Financial Services
Trident
Valuation
Work-from-home in most of the big cities across the world has contributed to
the demand revival of home textile products – with people spending more on
home improvement products, as homes have been converted into primary
workplaces. Demand revival has been further supported by government
stimulus, with the consumer focus largely on health and hygiene.
TRID saw strong demand for Home Textiles in 4QFY21, and the trend is expected
to continue in FY22, driven by strong demand from global retailers; the
company has order book visibility for the next six months.
Additionally, it has unveiled the ‘Vision 2025’, wherein it aims to achieve
revenue of INR250b by 2025, with a 12% PAT margin. TRID has appointed
business advisory and consulting organizations for assistance. The company has
shortlisted the following imperatives to achieve Vision 2025: (i)
growing the
core business
– it would capitalize on the recent growing retail trends in online
and offline brands; (ii)
expanding its presence in Digital & Industry 4.0
– this
comprises focusing on IOT, blockchain, and digitalization; (iii)
developing robust
processes and organization
– it aims to boost efficiency and simplify and
automate processes; and (iv)
building new businesses
– it intends to diversify,
build, and grow new businesses. We await further clarity on how the company
plans to achieve the said vision.
Although the performance was below our estimates, we maintain our earnings
estimates for FY22/FY23 on an improving demand outlook.
We value the company at 14x FY23E EPS and arrive at TP of INR18.4. Maintain
Buy.
Exhibit 8: One-year forward P/E (x)
40
30
20
10
0
P/E (x)
Avg (x)
Max (x)
Min (x)
+1SD
-1SD
29.0
8.5
12.6
4.4
1.9
12.5
Source: MOFSL
Exhibit 9: Change in estimates
Earnings Change
(INR m)
Revenue
EBITDA
Adj. PAT
FY22E
56,589
10,788
5,218
Old
FY23E
64,023
12,673
6,737
FY22E
57,235
11,121
5,324
New
FY23E
64,754
12,643
6,563
FY22E
1%
3%
2%
Change
FY23E
1%
0%
-3%
Source: MOFSL
17 May 2021
7
 Motilal Oswal Financial Services
Trident
Financials and valuations
Consolidated – Income Statement
Y/E March
Total Income from Operations
Change (%)
Total Expenditure
% of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT after EO Exp.
Total Tax
Tax Rate (%)
Share of profit/(loss) of associates
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
FY16
36,657
-2.4
29,359
80.1
7,297
19.9
3,366
3,931
1,452
334
2,813
0
2,813
392
13.9
0
2,421
2,421
105.4
6.6
FY17
46,252
26.2
37,397
80.9
8,855
19.1
4,125
4,730
1,410
1,062
4,382
0
4,382
1,016
23.2
7
3,372
3,372
39.3
7.3
FY18
45,594
-1.4
37,402
82.0
8,192
18.0
4,041
4,151
1,182
621
3,590
-321
3,911
1,256
32.1
6
2,661
2,341
-30.6
5.1
FY19
52,486
15.1
41,931
79.9
10,555
20.1
3,640
6,915
1,185
434
6,165
666
5,499
1,784
32.4
2
3,718
4,383
87.3
8.4
FY20
47,277
-9.9
38,979
82.4
8,298
17.6
3,337
4,961
1,109
202
4,055
-192
4,246
813
19.2
-36
3,397
3,205
-26.9
6.8
FY21
45,306
-4.2
37,134
82.0
8,172
18.0
3,369
4,804
721
161
4,244
265
3,978
941
23.6
6
3,044
3,309
3.2
7.3
FY22E
57,235
26.3
46,114
80.6
11,121
19.4
3,599
7,522
865
458
7,115
0
7,115
1,791
25.2
0
5,324
5,324
60.9
9.3
(INR m)
FY23E
64,754
13.1
52,111
80.5
12,643
19.5
3,863
8,780
657
648
8,770
0
8,770
2,207
25.2
0
6,563
6,563
23.3
10.1
Consolidated – Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Total Loans
Deferred Tax Liabilities
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Current Investments
Total Investments
Curr. Assets, Loans&Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability & Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Appl. of Funds
FY16
5,094
19,267
24,361
34,427
1,582
60,369
70,389
23,415
46,974
571
1
723
17,025
9,065
2,513
819
4,627
4,924
2,237
2,539
148
12,101
60,369
FY17
4,979
20,416
25,395
28,498
2,952
56,844
69,188
27,540
41,648
1,232
49
1,054
16,107
7,747
3,751
1,326
3,282
3,196
1,730
1,259
207
12,911
56,844
FY18
4,978
22,284
27,262
28,192
3,401
58,855
70,603
31,581
39,022
1,766
109
1,152
19,693
9,226
4,604
1,666
4,197
2,777
1,690
947
139
16,916
58,855
FY19
4,981
24,749
29,730
24,360
4,079
58,169
72,387
35,221
37,166
1,318
669
1,982
21,095
10,121
6,577
257
4,141
3,392
1,866
1,333
193
17,703
58,169
FY20
4,979
25,235
30,214
19,518
3,366
53,098
74,677
38,558
36,119
1,408
0
1,276
18,960
9,164
2,754
3,379
3,664
4,666
2,023
2,430
213
14,294
53,098
FY21
5,096
28,187
33,283
15,355
3,203
51,842
79,297
41,927
37,370
571
0
14
19,761
10,230
4,487
1,186
3,859
5,875
2,985
2,667
223
13,886
51,842
FY22E
5,096
32,979
38,075
16,856
3,203
58,134
84,297
45,526
38,771
2,571
0
14
23,674
12,074
5,488
1,532
4,579
6,895
3,251
3,434
210
16,778
58,134
(INR m)
FY23E
5,096
38,885
43,981
11,856
3,203
59,041
91,297
49,389
41,908
-3,429
3,500
3,514
24,923
13,306
5,677
1,407
4,533
7,875
3,752
3,885
238
17,048
59,041
17 May 2021
8
 Motilal Oswal Financial Services
Trident
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
FCF per share
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Current Ratio
Interest Cover Ratio
Net Debt/Equity
FY16
0.5
1.2
4.9
0.1
22.6
33.1
13.9
3.3
3.1
15.6
0.6
-1.2
10.4
6.8
6.4
0.5
0.6
191
25
47
3.5
2.7
1.4
FY17
0.7
1.5
5.1
0.2
27.1
23.8
10.7
3.2
2.3
12.1
0.9
1.7
13.6
7.9
6.5
0.7
0.8
127
30
28
5.0
3.4
1.1
FY18
0.5
1.3
5.5
0.1
33.8
34.3
12.6
2.9
2.3
13.0
0.9
0.5
8.9
5.9
5.2
0.6
0.8
148
37
27
7.1
3.5
1.0
FY19
0.9
1.6
6.0
0.0
4.8
18.3
10.0
2.7
2.0
9.9
0.2
1.0
15.4
9.1
8.6
0.7
0.9
152
46
28
6.2
5.8
0.8
FY20
0.6
1.3
6.1
0.0
6.4
25.0
12.3
2.7
2.0
11.6
0.2
2.0
10.7
8.0
7.9
0.6
0.9
156
21
34
4.1
4.5
0.5
FY21
0.7
1.3
6.7
0.0
5.9
24.2
12.0
2.4
2.1
11.5
0.2
0.2
10.4
7.7
7.6
0.6
0.9
185
36
54
3.4
6.7
0.4
FY22E
1.1
1.8
7.6
0.1
10.0
15.1
9.0
2.1
1.7
8.6
0.7
0.0
14.9
11.5
10.8
0.7
1.0
171
35
46
3.4
8.7
0.4
FY23E
1.3
2.1
8.8
0.1
10.0
12.2
7.7
1.8
1.4
7.2
0.8
1.9
16.0
12.7
11.8
0.7
1.1
163
32
46
3.2
13.4
0.2
Consolidated – Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest & Finance Charges
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
Others
CF from Operating incl EO
(Inc)/Dec in FA
Free Cash Flow
(Pur)/Sale of Investments
Others
CF from Investments
Issue of Shares
Inc/(Dec) in Debt
Interest Paid
Dividend Paid
Others
CF from Fin. Activity
Inc/Dec of Cash
Opening Balance
Closing Balance
FY16
2,766
3,376
1,230
-600
-1,424
5,348
-60
5,288
-11,214
-5,926
-250
132
-11,332
611
7,809
-1,367
-360
0
6,694
649
170
819
FY17
4,388
4,125
1,300
-860
1,243
10,196
-200
9,996
-1,467
8,529
-193
-15
-1,675
87
-5,858
-1,398
-915
270
-7,814
507
819
1,326
FY18
3,590
4,041
1,095
-909
-3,017
4,799
-364
4,435
-2,019
2,416
-10
150
-1,879
0
-537
-1,224
-920
465
-2,217
339
1,326
1,666
FY19
5,499
3,640
1,185
-1,784
-2,195
6,345
0
6,345
-1,336
5,009
-831
0
-2,167
3
-3,832
-1,185
-180
-393
-5,586
-1,408
1,666
257
FY20
4,246
3,337
1,109
-813
4,258
12,137
0
12,137
-2,381
9,756
706
1,248
-427
-2
-4,842
-1,109
-218
-2,418
-8,588
3,122
257
3,379
FY21
3,978
3,369
721
-941
-2,546
4,581
0
4,581
-3,782
799
1,262
971
-1,549
117
-4,163
-721
-179
-278
-5,225
-2,193
3,379
1,186
FY22E
7,115
3,599
865
-1,791
-2,546
7,242
0
7,242
-7,000
242
0
0
-7,000
0
1,501
-865
-532
0
104
346
1,186
1,532
(INR m)
FY23E
8,770
3,863
657
-2,207
-394
10,689
0
10,689
-1,000
9,689
-3,500
0
-4,500
0
-5,000
-657
-656
0
-6,314
-125
1,532
1,407
17 May 2021
9
 Motilal Oswal Financial Services
Trident
NOTES
17 May 2021
10
 Motilal Oswal Financial Services
Trident
Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
Expected return (over 12-month)
>=15%
< - 10%
< - 10 % to 15%
Rating may undergo a change
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within following 30
days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the Regulations,
is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial products. MOFSL is a subsidiary
company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are available on www.motilaloswal.com. MOFSL
(erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading Member with National Stock Exchange of
India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and National Commodity & Derivatives Exchange Limited (NCDEX) for its
stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member
of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance
products.
Details
of
associate
entities
of
Motilal
Oswal
Financial
Services
Limited
are
available
on
the
website
at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and buy or sell
the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a
market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other potential conflict of
interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the specific recommendations made by the
analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even though there might exist an inherent conflict of interest in
some of the stocks mentioned in the research report
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report should be aware
that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant banking, investment
banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental research and
Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from MOFSL research activity
and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use
would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong Securities
and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst Regulations) 2014 Motilal
Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of research report in Hong Kong. This report
is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity to which this document relates is only available to
professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these securities, products and services in any jurisdiction where their offer
or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state
laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934
Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by
MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is intended for distribution only to "Major Institutional Investors" as
defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional investors"). This document must not be acted on or relied on
by persons who are not major institutional investors. Any investment or investment activity to which this document relates is only available to major institutional investors and will be engaged in
only with major institutional investors. In reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and
interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a
chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be
executed within the provisions of this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered
broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading
securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets services
license and an exempt financial adviser in Singapore.As per the approved agreement under Paragraph 9 of Third Schedule of Securities and Futures Act (CAP 289) and Paragraph 11 of First
Schedule of Financial Advisors Act (CAP 110) provided to MOCMSPL by Monetary Authority of Singapore. Persons in Singapore should contact MOCMSPL in respect of any matter arising
from, or in connection with this report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”, of which some of whom may consist of
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such an institutional investor, such Singapore Person must immediately discontinue any use of this Report and inform MOCMSPL.
Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
********************************************************************************************************************************
The associates of MOFSL may have:
-
financial interest in the subject company
-
actual/beneficial ownership of 1% or more securities in the subject company
-
received compensation/other benefits from the subject company in the past 12 months
17 May 2021
11
 Motilal Oswal Financial Services
Trident
other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the specific
recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even though there
might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
-
acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
-
be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies)
discussed herein or act as an advisor or lender/borrower to such company(ies)
-
received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not consider
demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from clients which are not
considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research
analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and may not be
altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of MOFSL. The report is
based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in nature. The information is obtained from
publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty, representation of warranty, express or implied, is made
as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The report is prepared solely for informational purpose and does not
constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments for the clients. Though disseminated to all the customers
simultaneously, not all customers may receive this report at the same time. MOFSL will not treat recipients as customers by virtue of their receiving this report.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or
in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose and may not be
used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this report constitutes investment, legal,
accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in this
report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This
may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this document should make such investigations as it deems necessary to arrive at
an independent evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved), and should consult its own advisors to
determine the merits and risks of such an investment. The investment discussed or views expressed may not be suitable for all investors. Certain transactions -including those involving futures,
options, another derivative products as well as non-investment grade securities - involve substantial risk and are not suitable for all investors. No representation or warranty, express or implied,
is made as to the accuracy, completeness or fairness of the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is
provided solely to enhance the transparency and should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The
Company reserves the right to make modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and
the employees may from time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform
or seek to perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a
separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that is
already available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the
views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or
published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any
locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject MOFSL to any registration or
licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose
possession this document may come are required to inform themselves of and to observe such restriction. Neither the Firm, not its directors, employees, agents or representatives shall be
liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the information.
The person accessing this information specifically agrees to exempt MOFSL or any of its affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not
to hold MOFSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOFSL or any of its affiliates or employees free and harmless from all losses,
costs, damages,
expenses that may be suffered by the person accessing this information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263; Website
www.motilaloswal.com.CIN no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad(West), Mumbai-
400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst: INH000000412. AMFI:
ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company Ltd. (MOAMC): PMS (Registration
No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.:
INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond,
NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. which is a group company of MOFSL. Private Equity is offered
through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL. Research & Advisory services is backed by proper research. Please read the Risk
Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no assurance or guarantee of the returns. Investment in securities market is subject to market risk,
read all the related documents carefully before investing. Details of Compliance Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National Company Law
Tribunal, Mumbai Bench.
-
17 May 2021
12