Buy Trent; target of Rs 2750 Sharekhan

Sharekhan's research report on Trent

Trent maintained its strong growth momentum in Q2FY2024 with 59% y-o-y revenue growth (37% CAGR over FY2020-FY2024) versus low single-digit apparel industry’s growth affected by weak consumer demand. Like-for-like (LFL) growth stood at 10%, well ahead of peers who saw subdued LFL during Q2. Focus on providing consistent value to customers will help in maintaining double-digit LFL going ahead. Strong earnings growth visibility with double-digit growth in the core Westside brand and strong scale-up in Zudio in the coming years.

Outlook

The stock currently trades at 39.3x/29.9x/24.1x its FY2024E/FY2025E/FY2026E EV/EBIDTA. We maintain Buy with a revised PT of Rs. 2,750.

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