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Buy Trent: target of Rs 1415: Sharekhan

Sharekhan is bullish on Trent has recommended buy rating on the stock with a target price of Rs 1415 in its research report dated April 28, 2022.

April 30, 2022 / 11:40 AM IST

"India’s specialty chemicals industry is a decadal growth opportunity and it is still not too late to participate in the value creation process. We prefer CRAMS/CSM players Navin Fluorine (Navin) and PI Industries (PI) as they provide long-term earnings visibility. We also like UPL due to robust growth outlook and reducing debt concerns and SRF due to rising contribution from the chemicals business," JM Financial research report.

 
 
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Sharekhan's research report on Trent


Q4FY2022 was a mixed bag with strong y-o-y revenue growth of 53% (63% growth over Q4FY2020) to Rs. 1,185.3 crore, while margins declined y-o-y (gross margins fell by 405 bps while EBITDA margins fell by 480 bps). PAT grew by 32% y-o-y to Rs. 75 crore. Like-for-like (LFL) sales grew by 21% y-o-y in Q4FY22 and 16% compared with Q4FY2020. Sales through online platform grew by 85% in Q4. The company operated 200 Westside stores and 235 Zudio stores (total 435 fashion stores) as on March 31, 2022. With strong liquidity, store additions are expected to be strong in the coming years. Strong momentum in LFL sales and store expansions will help Trent’s revenues and PAT to clock CAGR of 33% and 57% over FY2022-24E.



Outlook


We maintain a Buy on the stock with a revised price target of Rs. 1,415.

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first published: Apr 30, 2022 11:40 am
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