Trent maintained its strong growth momentum in Q1FY2024 with y-o-y revenue growth of 54% (35% CAGR over FY20-24) versus low single-digit apparel industry growth affected by weak consumer demand. Like-for-like (LFL) growth stood at 12%, well ahead of peers who saw a decline or flat LFL. Well-defined strategies with value offerings will help Trent in maintaining double-digit LFL in the coming quarters. We expect Trent’s revenue and PAT to grow at a 33% and 61% CAGR, respectively, over FY23-25E led by strong store expansion, sustained double-digit like-for-like growth in Westside, a scale-up in emerging categories and improved contribution from Zudio.
OutlookStock currently trades at 28.9x/22.6x its FY2024E/25E EV/EBIDTA. We maintain our Buy rating on Trent with a revised PT of Rs. 2,150.
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