Trent Ltd. share price target

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...

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...

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...

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

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

Zudio' (22% of sales), the value fashion brand, continues to be the next leg of growth for Trent (revenue CAGR: 50% FY18-21) Q2FY22 Results: Trent delivered a blockbuster quarterly performance with significant beat on our/consensus estimates across all fronts. While revenue recovery rate was expected to reach close to pre-Covid levels, Trent reported its...

TRENT saw a strong recovery in revenue (beating our estimate, up 2.3x YoY, and 25% above pre-COVID or 2QFY20 levels) on the back of a 46% addition in its store footprint. On a LTL basis, sales came in ~20% below pre-COVID levels. Westside/Zudio grew 3%/3x from its pre-COVID base. EBITDA/PAT saw a strong 67%/3.3x jump from pre-COVID levels. Despite revenue being below pre-COVID levels on a LTL basis, margin has been much better. Zudio has grown 3x in the last two years, despite the impact of the COVID-19 outbreak, and is expected to contribute over onethird by FY23E. We have largely maintained our FY23 estimate, factoring in...

On track to achieve rapid revenue recovery. consumer categories (400+ stores). Inherent strength of brands (Westside, Zudio, Star, Zara) and accelerated store additions has led Trent to be among the fastest...