Buy Trent, target price Rs 1650: Axis Securities

Axis Securities has buy call on Trent with a target price of Rs 1650. The current market price of Trent Ltd. is Rs 1321.75.

Trent, incorporated in the year 1952, is a Large Cap company (having a market cap of Rs 47320.71 Crore) operating in Retail sector.

Trent key Products/Revenue Segments include Readymade Garments, Other Operating Revenue and Rent for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 2022.66 Crore, up 9.51 % from last quarter Total Income of Rs 1846.98 Crore and up 65.04 % from last year same quarter Total Income of Rs 1225.52 Crore. Company has reported net profit after tax of Rs 64.98 Crore in latest quarter.

The company’s top management includes Mr.S N Tata, Mr.H Ravichandar, Mr.R S Gill, Mr.S Given, Mr.J Merchant, Mr.H Bhat, Mr.B N Vakil, Mr.B Bhat, Mr.P Venkatesalu, Mr.N N Tata, Mr.J Holtzhausen. Company has Deloitte Haskins & Sells LLP as its auditors. As on 30-09-2022, the company has a total of 36 Crore shares outstanding.

Investment Rationale
Superior store metrics, supply chain optimization, diligent focus on cost rationalization, aggressive store expansion, higher contribution from private brands, and innovative offerings in the value space would be key growth drivers in the long run. The brokerage recommends a BUY rating on the stock with a TP of Rs 1,650/share, implying an upside of 23% from the current levels.

Promoter/FII Holdings
Promoters held 37.01 per cent stake in the company as of 30-Sep-2022, while FIIs owned 26.82 per cent, DIIs 15.09 per cent.