Buy Trent, target price Rs 1101: Edelweiss

Edelweiss has buy call on Trent with a target price of Rs 1101. The current market price of Trent Ltd. is Rs 883.7.
Time period given by analyst is one year when Trent Ltd. price can reach defined target.

Trent Ltd., incorporated in the year 1952, is a Large Cap company (having a market cap of Rs 31229.57 Crore) operating in Retail sector.


Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 544.79 Crore, down -44.01 % from last quarter Total Income of Rs 972.99 Crore and up 79.77 % from last year same quarter Total Income of Rs 303.05 Crore. Company reported net profit after tax of Rs -116.56 Crore in latest quarter.

Investment Rationale
At the AGM, management mentioned it is targeting addition of 35 Westside and 75 Zudio stores in FY22. Factoring the same, the brokerage raises FY23E EBITDA 3%, leading to revised TP of INR1,101 (INR1,056 earlier). It maintains ‘BUY/SO’. It believes Trent has established viability of Zudio and expect it to drive next leg of growth.

Promoter/FII Holdings
Promoters held 37 per cent stake in the company as of Dec 30, 2020, while FIIs held 29.4 per cent, DIIs 10 per cent and public and others 23.6 per cent.