Buy Trent, target price Rs 1835: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on Trent with a target price of Rs 1835. The current market price of Trent is Rs 1600.1.

Trent, incorporated in the year 1952, is a Large Cap company (having a market cap of Rs 56810.45 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 31-03-2023, the company has reported a Consolidated Total Income of Rs 2268.06 Crore, down -4.11 % from last quarter Total Income of Rs 2365.24 Crore and up 65.19 % from last year same quarter Total Income of Rs 1372.97 Crore. Company has reported net profit after tax of Rs 38.35 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 31-03-2023, the company has a total of 36 Crore shares outstanding.

Investment Rationale
At 29.9x EV/EBITDA and P/E of 54.5x on FY25E consolidated basis, the valuation is rich, but the high multiple is justified by strong growth. Star’s improving store metrics offer a further opportunity.

Promoter/FII Holdings
Promoters held 37.01 per cent stake in the company as of 31-Mar-2023, while FIIs owned 24.43 per cent, DIIs 16.03 per cent.