Sharekhan has given Buy recommendation for Trent with a target price of Rs. 1015 in its research report issued on Mar 02, 2021
Sharekhan’s research report on Trent
India’s branded apparel industry is expected clock a CAGR of 10% over FY2020-25 driven by better urban and rural demographics and a significant shift to branded products. With strong contribution from private labels, higher sales per sq.ft (versus peers) and a strong balance sheet, Trent is expected to be key beneficiary of growing apparel demand in the coming years. Trent will continue to add 80-100 stores every year (including 25-30 Westside stores and 40-50 Zudio stores). This along with steady same-store-sales growth of 8-9% per annum will help revenues record a CAGR of 9% over FY2020-23E (to grow by 40% over FY21-23). We have increased our estimates for FY2023E by 5% to factor in strong revenue growth of FY2023.
We maintain a Buy on the stock with a revised PT of Rs. 1,015.