Trent Ltd. share price target

Standalone revenues for Q4FY17, which includes Westside and Landmark formats, grew 19.7% YoY (up 5.6% QoQ) to | 454.1 crore (Idirect estimate: | 436.4 crore) Better inventory management has led to a 50 bps improvement in gross margins to 48.8% vs. 48.3% in Q4FY16. In addition to the same, a decline in other expenses to sales ratio (22.5% vs. 25.2% in Q4FY16) led to an expansion of 174 bps YoY in EBITDA margins to 3.1% (Idirect estimate: 2.4%). Subsequent to the steep improvement in EBITDA margins, absolute EBITDA nearly trebled to | 14 crore vs. | 5 crore in Q4FY16 (I-direct estimate: | 10.4 crore)...

BUY Trent Ltd between Rs. 235 - 266 for the target of Rs. 305 - 350

ICICI Securities Ltd | Retail Equity Research We recently met the management of Trent Ltd (Trent) to understand its business model and its future course of action. Trent's retail core business comprises West side and Landmark while it has JVs with Tesco and Inditex for Star Bazaar and Zara, respectively. Westside offers inhouse branded fashion apparels spread across 53 cities with 86 stores. Star Bazaar is Trent's hypermarket joint venture with British grocery & general merchandise retailer Tesco, which currently holds 50% in the JV. As on FY15, there are 18 Star Banner stores. Trent also has a JV with one...