Buy Trent, target price Rs 1730 : ICICI Direct

ICICI Direct has buy call on Trent with a target price of Rs 1730. The current market price of Trent is Rs 1222.45.

Trent, incorporated in the year 1952, is a Large Cap company (having a market cap of Rs 43360.58 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
Among apparel players, Trent, over the last few quarters has been reporting industry best revenue growth driven by healthy store additions and recovery in SSSG. The brokerage expects Trent to report 40% YoY revenue growth (three-year CAGR: 29%).

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.