Trent Share Price Target: Motilal Oswal Recommends Buy Amid Strong Growth Opportunity

Leading brokerage firm Motilal Oswal has recommended buy call to Tata group company Trent Ltd shares for target price of Rs 7040 per share. Current market price of Trent Ltd shares on BSE is Rs 6377.60 per share with gain of 1.60% in trade today. Trent shares hit fresh 52-week high on August 12, 2024. Trent shares offered 238% return in last 1-year and 113% year-to-date. The company's market capitalisation stood at Rs 2,26,623.26 crore. The Board of Trent on April 29 recommended 320% dividend and shares traded ex-dividend on May 22, 2024. Check key details below:

Trent Share Performance: The 52-week high price of Trent share on BSE is Rs 6436.00 per share (as on 12/08/2024) and 52-week low price is Rs 1858.05 per share (as on 14/08/2023), respectively. Trent shares offered 19% return in last 1-week, gained 67% in last 6-months, offered return of 361% in last 2-years, and rose 611% in last 3-years. In last 5-years, Trent stock gained 1330%.

Motilal Oswal Recommends Buy: According to the brokerage firm, "based on strong revenue productivity, aggressive store additions, margin tailwinds from moderating RM, and operating leverage, we estimate a CAGR of 41%/52% in revenue/PAT over FY24-26. The continued momentum in Star and improving store metrics offer further upside potential. We reiterate our BUY rating with a revised TP of INR7,040, given TRENT's strong growth opportunity going forward."

Trent Latest Financials: Trent declared consolidated net profit at Rs 392.6 crore for Q1FY25, up 126% as against the net profit of Rs 173.48 crore declared in the corresponding quarter of last year. Its revenue from operations zoomed 56% to Rs 4,104.4 crore for Q1FY25 as against 2,628.37 crore in the similar quarter of last year, according to the exchange filing. Trent declared its EBITDA at Rs 612.6 crore as EBITDA margin soared 14.91% for the quarter under review from 13.93% declared in the year ago period.

The business as of June 30, 2024 in store portfolio has 228 Westside, 559 Zudio, and 36 stores across other lifestyle concepts. During the quarter the company opened 6 Westside and 16 Zudio stores across 12 cities. The gross margin profile of Westside and Zudio remains consistent with earlier trends. Overall, the operating EBIT margin for Q1FY25 was 10.6 percent as compared to 7.8 percent for Q1FY24, according to Trent's press release.

Trent Dividend: As per the BSE filing dated April 29, "The Board of Directors of the Company have recommended a Dividend of 320% i.e., Rs. 3.20/- per Equity Share of Re. 1/- each, subject to the approval of shareholders.
Trent Stock Split History: Trent split the face value of its shares once since September 12, 2016. Trent split the face value of its shares from Rs 10 to Re 1 in 2016. It fixed ex-date as September 12, 2016.

Trent Shareholding: Sbi life insurance co ltd has 2.31% stake in Trent with 8,193,990 shares of the company. FII/FPI have increased holdings from 26.81% to 27.87% in June 2024 quarter. Number of FII/FPI investors increased from 869 to 1014 in June 2024 quarter. Mutual Funds have decreased holdings from 8.72% to 8.50% in June 2024 quarter. Number of MF schemes increased from 38 to 41 in June 2024 quarter. Institutional Investors have increased holdings from 40.71% to 41.06% in June 2024 quarter, according to Trendlyne.

Trent About: Trent Limited is part of the Tata Group and operates a portfolio of retail concepts. The primary customer propositions of Trent include Westside, one of India's leading chains of fashion retail stores, Zudio, a one stop destination for great fashion at great value and Star, which operates in the competitive food, grocery and daily needs segment. Westside stores have a footprint of predominantly between 20,000-30,000 sq. ft. across 86 cities. Westside stocks a broad range of products ranging from apparel, footwear, accessories to cosmetics and perfumes to home accessories and gifts amongst others.

Disclaimer:

The stock highlights the Q1 results and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.