Motilal Oswal's research report on Trent
Continued momentum in footprint addition and robust LFL growth, led to a strong 78% YoY growth in revenue (2.2x over pre-COVID levels). However, lower gross margin, mainly attributed to a change in mix towards Zudio and higher OPEX (on account of aggressive store additions), resulted in an EBITDA margin contraction of 690bp YoY, 160bp below pre-COVID levels.
We expect a consolidated revenue/EBITDA CAGR of 52%/72% over FY22- 24, backed by a strong footprint addition and robust LFL growth across segments. We retain our Buy rating with a TP of INR1,700, given the strong growth opportunity for TRENT.
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