Sharekhan's research report on Trent
Trent’s management indicated that its share in India’s fashion and lifestyle retail industry is currently in low-single digits. It is targeting a higher market share from micro markets and aspires to achieve a 25% revenue CAGR over the long term. LFL growth is likely to be muted in the near term but improve in the long term driven by a strong product portfolio and store fundamentals. The company is continuously focusing on removing inefficiencies and optimising store operations, which will lead to better margins and capital efficiency resulting in a better return profile at store level.
Outlook
We maintain a Buy rating with a revised SOTP-based PT of Rs. 6,781. Stock trades at 51x/42x its FY26E/FY27E EV/EBITDA, respectively.
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