Trent Ltd. share price target

We recommend a BUY rating on the stock with a near term TP of Rs 1,180, implying an upside of 10% from the CMP.

We revise our SOTP based TP to Rs 1,350 (Rs 1,200 earlier) on account of improving profitability and higher footfalls as we believe that FY23 should be a normal year. Maintain BUY.

Westside and Zudio have seen a better recovery and achieved budgeted sales, with a healthy growth in the last couple of months v/s pre-COVID levels. This could be attributed to: a) its sticky customer base and targeting of customers through its membership program, b) higher fashion quotient in store inventory, which balances increasing prices, and c) a relatively less impacted affluent and youth customer compared to the lower middle-income group, which seemed to have curbed spending in many smaller cities as per our channel checks. Revenue from Zudio has more than doubled to INR11b in FY22E from INR4.8b in...

We revise our SOTP based TP to Rs 1,200 (Rs 1180, earlier) on the back of improving profitability & higher footfalls. Maintain BUY.

The company is likely to continue its stellar revenue growth trend on the back of aggressive footprint addition and strong customer reception, reflecting in its industry-leading SSSG. We have revised our revenue/ EBITDA estimate by ~10%, driving strong 48%/38% CAGR in...

Westside' (75% of revenues) has proven to be one of the most profitable business models as it primarily focuses on selling private label brands (EBITDA margin: 11%, consistent SSSG: 8-9%) Zudio' (22% of sales), the value fashion brand, continues to be the next leg of growth for Trent (revenue CAGR: 50% FY18-21) Q3FY22 Results: The revenue trajectory continued to be robust with significant...

We recommend BUY with a TP of Rs 1,180/share.