Trident is having a volatile day. The stock, which had closed on Thursday at Rs.25.50, opened with a positive bias at Rs.26.40, hitting a new high but profit booking at this level has since pushed the stock into the red at Rs.25.45 currently.
The market initially reacted positively to its business update wherein, it gave out its production details for August though there is no monthly comparable data given – we don’t know if the production was higher or lower.
It produced 4920 mt of Bath linen, 3.1 mt of bed linen, 11,103 mt of Yarn and in the paper division – 14,721 mt of paper and 8930 mt of chemicals.
The market was happier with the news of its expansion plans – it proposes to add capacity for yarn business with 98,496 Spindles and 3,600 Rotors, and 70,000 meters per day of sheeting.
It has also proposed a capacity addition of 16.3 MW for its cogen plant in the energy business.
Trident’s current capacity stands at 589,248 Spindles, 7,464 Rotors and 160 Air Jet for its yarn segment.
That of its sheeting is 120,000 metres per and cogen plant is at 49.4 MW.
The total cost of this expansion is at Rs.1377 crore which is to be funded with a mix of debt and equity.