Penny Stock Trident rockets 8 per cent- What's the story behind its surge?
Nearly 60 per cent of the company's revenue comes from the bath and bed linen segment. Hence, the demand for home textiles in the USA will be a key monitorable
The Indian stock market has been witnessing an impressive rally, with the benchmark Nifty50 index extending its winning streak for the seventh straight session. On Tuesday, the index rose over half a per cent and the broader markets also advanced, keeping pace with the frontline index. However, amidst this upward momentum, there was one stock that surprised investors - Trident Limited.
Trident Limited is the flagship company of the Trident Group, an Indian business conglomerate that is also a global player. The company is headquartered in Ludhiana, Punjab and is vertically integrated into the textile (Yarn, Towel & Bedsheets) and paper (Wheat Straw-based) manufacturing businesses. It is one of the largest players in the home textile industry in India.
Trident Limited's stock opened at Rs 29.80 and went on to touch an intraday high of Rs 32.20, settling up by 8 per cent. Total trade volume for the day stood around 3.81 crore on NSE, which is the highest single-day volume since October last year. Furthermore, the volume for the day was above the 10 and 30-days average volume.
So, what was the key catalyst that led to the strong up-move in the stock? Trident Limited reported its monthly production numbers, which showed a strong MoM growth in various segments of its business. In their home textile business division, the bath linen saw growth of 7 per cent MoM, bed linen saw a growth of 13 per cent and yarn saw growth of 15 per cent. In their paper and chemical division, paper production was up one per cent on a MoM basis and chemical production was up 12 per cent MoM.
0in the upcoming earnings season. Therefore, investors should keep an eye on this stock as it has reclaimed its 20 and 50-DMA and the stock has formed a sizable bullish candle on Tuesday.
In conclusion, Trident Limited's strong monthly production numbers and the potential growth in the US home textile market make it an interesting stock to watch. With the stock showing a strong upward momentum, investors should keep a close eye on this company.