Sharekhan's research report on Trent
Q3FY2022 was a mixed bag with strong y-o-y revenue growth of 86% (growth of 54% over Q3FY2020 ) to Rs. 1,347.8 crore while margins declined y-o-y (gross margin down by 513 bps and OPM lower by 317 bps) due to input cost inflation. PAT came at Rs. 132.9 crore. Westside’s revenues crossed Rs. 1,000 crore with like-for-like growth of 9% and 49% against Q3FY2020 (pre-COVID) and Q3FY2021, respectively. Online channel registered 99% y-o-y growth. The company expects growth momentum to continue going ahead. The company operates 197 Westside stores and 177 Zudio stores (total 374 fashion stores) as on date and targets to have more than 425 fashion stores by March 2022.
Outlook
Trent is one of our preferred picks in the retail space due to its differentiated business model, strong store expansion plan and a healthy balance sheet. We maintain a Buy on the stock with an unchanged price target of Rs. 1,275
More Info on Trent
At 15:52 hrs Trent was quoting at Rs 1,059.90, down Rs 1.35, or 0.13 percent.
It has touched an intraday high of Rs 1,085.00 and an intraday low of Rs 1,052.80.
It was trading with volumes of 6,295 shares, compared to its thirty day average of 31,502 shares, a decrease of -80.02 percent.
In the previous trading session, the share closed down 1.90 percent or Rs 20.60 at Rs 1,061.25.
The share touched its 52-week high Rs 1,211.95 and 52-week low Rs 689.15 on 19 January, 2022 and 12 April, 2021, respectively.
Currently, it is trading 12.55 percent below its 52-week high and 53.8 percent above its 52-week low.
Market capitalisation stands at Rs 37,678.12 crore.
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