Buy Trent; target of Rs 1415: Sharekhan

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26 Aug, 2025 12:21

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Sharekhan's research report on Trent

Amongst the retail universe, Trent registered strong performance in the current fiscal with revenues and PAT clocking a CAGR of 11%/30% over FY2020-22 backed by strong store expansion plan. Despite capex of Rs. 255 crore (on store additions), the company managed to retain cash position of Rs. 520 crore. Higher inventory on books (led by strong store expansions) drove down operating cash flows to Rs. 227 crore vs. Rs. 325 crore in FY2021. The company ended the fiscal with 200 Westside stores and a strong recovery in revenue per sq. ft to Rs. 9,950 (93% of pre-COVID levels). Zudio posted revenue of Rs. ~1,100 crore in FY2022 and ended the year with 400 stores.

Outlook

We re-iterate a Buy rating on Trent with an unchanged PT of Rs. 1,415. Correction of 21% from highs offers a good entry opportunity in this quality retail play that has seen aggressive store expansions and has the best business model among peers. Stock trades at 28.6x/22.5x its FY2023E/24E EV/EBITDA.

More Info

At 11:43 hrs Trent was quoting at Rs 1,022.00, down Rs 27.65, or 2.63 percent.

It has touched an intraday high of Rs 1,050.00 and an intraday low of Rs 1,009.00.

It was trading with volumes of 11,915 shares, compared to its thirty day average of 29,707 shares, a decrease of -59.89 percent.

In the previous trading session, the share closed up 0.07 percent or Rs 0.70 at Rs 1,049.65.

The share touched its 52-week high Rs 1,347.10 and 52-week low Rs 831.60 on 07 April, 2022 and 21 June, 2021, respectively.

Currently, it is trading 24.13 percent below its 52-week high and 22.9 percent above its 52-week low.

Market capitalisation stands at Rs 36,330.82 crore.

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