ICICI Direct has given Buy recommendation for Trent with a target price of Rs. 1470 in its research report issued on Jun 13, 2022
ICICI Direct’s research report on Trent
Trent is India’s leading retailer with a presence across various consumer categories (550+ stores). Inherent strength of brands (Westside, Zudio, Star, Zara) and accelerated store additions have led Trent to be among the fastest growing companies in our retail coverage universe. ‘Westside’ (72% of revenues) has proven to be one of the most profitable business models as it primarily focuses on selling private label brands (EBITDA margin: 11%, consistent SSSG: 10+%) • ‘Zudio’ (28% of sales), the value fashion brand, continues to provide the next leg of growth for Trent (revenue CAGR: 72% FY19-22).
Robust performance during challenging times and industry leading performance will continue to warrant premium valuations for Trent. Hence, we maintain our BUY rating on the stock. We value Trent at Rs 1470 based on SOTP valuation.
At 14:18 hrs Trent was quoting at Rs 1,074.50, down Rs 12.10, or 1.11 percent.
It has touched an intraday high of Rs 1,092.75 and an intraday low of Rs 1,073.20.
It was trading with volumes of 36,394 shares, compared to its thirty day average of 36,252 shares, an increase of 0.39 percent.
In the previous trading session, the share closed down 2.43 percent or Rs 27.05 at Rs 1,086.60.
The share touched its 52-week high Rs 1,347.10 and 52-week low Rs 830.05 on 07 April, 2022 and 17 June, 2021, respectively.
Currently, it is trading 20.24 percent below its 52-week high and 29.45 percent above its 52-week low.
Market capitalisation stands at Rs 38,197.13 crore.