What explains the valuation gap between Welspun & Trident? Both are close in terms of operations except that Trident is backward integrated into Yarn (which is at best 4-5% EBITDA business).
- Welspun’s EBITDA margin 15.5% vs 15.1% for Trident.
- Welspun has a higher B2C share vis-a-vis Trident which is more B2B
- Welspun has higher Bed Linen capacity vis-a-vis Trident and hence greater operating leverage in play
- Similar net debt levels (1540crs for Welspun vs 1450 for Trident). Infact, the debt ratios are better for Welspun due to higher absolute EBITDA (1114 crs for Welspun vs 766crs for Trident)
In terms of valuation
If anything its Trident that had an income tax raid recently. Can’t understand the gap.
What’s the logic?
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