Buy Trent, target price Rs 1550: Sharekhan by BNP Paribas

Sharekhan by BNP Paribas has buy call on Trent with a target price of Rs 1550. The current market price of Trent is Rs 1394.3.

Trent, incorporated in the year 1952, is a Large Cap company (having a market cap of Rs 49544.29 Crore) operating in Retail sector.

Trent key Products/Revenue Segments include Readymade Garments, Other Operating Revenue and Rent for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 2268.06 Crore, down -4.11 % from last quarter Total Income of Rs 2365.24 Crore and up 65.19 % from last year same quarter Total Income of Rs 1372.97 Crore. Company has reported net profit after tax of Rs 38.35 Crore in latest quarter.

The company’s top management includes Mr.S N Tata, Mr.H Ravichandar, Mr.R S Gill, Mr.S Given, Mr.J Merchant, Mr.H Bhat, Mr.B N Vakil, Mr.B Bhat, Mr.P Venkatesalu, Mr.N N Tata, Mr.J Holtzhausen. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-03-2023, the company has a total of 36 Crore shares outstanding.

Investment Rationale
With encouraging performance from new stores opened in the past 12 months and sustained double-digit like-for-like growth in Westside, revenue is expected to grow in double digits in the coming years. Stock currently trades at 25.4x/20.7x its FY2024E/25E EV/EBIDTA.

Promoter/FII Holdings
Promoters held 37.01 per cent stake in the company as of 31-Mar-2023, while FIIs owned 24.43 per cent, DIIs 16.03 per cent.