Trent Ltd. share price target

TRENT reported strong standalone revenue growth of 53% (in line) in
4QFY24, led by 10% LFL and 37% YoY store additions. Robust revenue
growth, along with GM improvement and operating leverage, resulted in
2.3x/2.4x YoY growth in EBITDA/PAT (11%/31% beat).

Trent posted yet another stellar quarter in Q4FY2024 with revenues growing by 53% y-o-y to Rs. 3,187
crore, EBITDA margin rising sharply by 477 bps y-o-y to 15% and adjusted PAT growing by 2.75x y-o-y to Rs. 289 crore.

Recommendation With a 12% upside potential from the CMP, we maintain our BUY rating on the stock.

With a 13% upside potential from the CMP we maintain our BUY rating on the stock.

Trent delivered its best-ever performance in tough time. The result was an outlier in the overall sector. Zudio’s expansion- and execution-driven success is impressive. 10% SSSG is highest in the sector vs -1% to -18% SSSG for other apparel companies in 2Q.

Trent has outperformed yet again with strong beat in a difficult quarter in terms of demand and lower discretionary spending. Trent has registered a stellar consolidated revenue growth of 46% YoY to ? 2,628 Cr, a 25% EBITDA growth and 45% PAT growth on YoY basis.

Company Outlook & Guidance: We maintain our BUY recommendation as we increase our FY24/25 estimates marginally