Buy Trent; target of Rs 2750: Motilal Oswal

Motilal Oswal's research report on Trent

TRENT’s standalone EBITDA/PAT reported a strong growth of 72.3%/55.9% YoY (a big beat), driven by robust revenue growth of 59.4% YoY, which was driven by aggressive store additions in Zudio and 10% LFL growth in 2QFY24. Led by strong revenue productivity, aggressive store additions, and margin tailwinds from operating leverage, we have raised our revenue/EBITDA estimates by ~10%/18% for FY24 building in 46%/51% CAGR over FY23-25. Continued momentum within Star and improving store metrics offer further upside potential.

Outlook

We reiterate our BUY rating with a revised TP of INR2,750, given the strong growth opportunity for TRENT.