Equal Weight on Trent, target price Rs 6,570: Axis Securities

Axis Securities has an equal weight call on Trent with a target price of Rs 6,570. The current market price of Trent Ltd. is Rs 4817.1. Trent, incorporated in 1952, is a Large Cap company with a market cap of Rs 170905.93 crore, operating in the Retail sector.

Trent's key products/revenue segments include Readymade Garments, Other Operating Revenue and Rent for the year ending 31-Mar-2024.

Financials

For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 4715.64 crore, up 12.15% from last quarter Total Income of Rs 4204.65 crore and up 32.95% from last year same quarter Total Income of Rs 3546.95 crore. The company has reported net profit after tax of Rs 470.31 crore in the latest quarter.

The company's top management includes Mr.S N Tata, Mr.S Given, Mr.J Merchant, Mr.H Bhat, Mr.B Bhat, Mr.J Holtzhausen, Mr.H Ravichandar, Mr.R S Gill, Mr.P Venkatesalu, Mr.N N Tata, Mr.Kiran Mazumdar Shaw. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-12-2024, the company has a total of 36 crore shares outstanding.

Investment Rationale
Axis Securities expects strong sales growth to continue in the coming quarters, driven by Trent's rapid store expansion and ongoing assortment renewal, which should boost overall footfall. The improving earnings profile across all formats, reduction in losses at Star Bazaar, and increasing traction at the Inditex JV are positive indicators. Trent?s adoption of the Trent playbook for the Star business, led by private labels, is yielding positive results and is expected to be a key growth driver. Additionally, its geographical expansion in the UAE, the launch of Zudio Beauty, and its recent entry into the fast-growing LGD jewellery segment will be significant long-term growth catalysts. Given these factors, we remain positive on Trent from a mid to long-term perspective.

Promoter/FII Holdings
Promoters held 37.01 per cent stake in the company as of 31-Dec-2024, while FIIs owned 21.68 per cent, DIIs 15.25 per cent.