Buy Trent, target price Rs 1180: Axis Securities

Axis Securities has buy call on Trent with a target price of Rs 1180. The current market price of Trent is Rs 1049.15.
Time period given by analyst is 9 months 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 36871.16 Crore) operating in Retail sector.


Trent Ltd. key Products/Revenue Segments include Readymade Garments, Other Operating Revenue and Rent for the year ending 31-Mar-2021.


Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 1225.52 Crore, up 124.95 % from last quarter Total Income of Rs 544.79 Crore and up 96.85 % from last year same quarter Total Income of Rs 622.58 Crore. Company reported net profit after tax of Rs 69.98 Crore in latest quarter.

Investment Rationale
Management continues to focus on reduction in rental and other related charges and expenses by engaging with property partners. Further, it is looking to variabalize certain expenditure with that to revenues including lease payments thus mitigating the downside pressure on margins. Cost saving initiatives and increasing scale of operations, Trent could report significant improvement in margins in Q3FY22 and Q4FY22.

Promoter/FII Holdings
Promoters held 37.01 per cent stake in the company as of 30-Sep-2021, while FIIs owned 30.13 per cent, DIIs 11.16 per cent.