3 weeks ago
Brokerages split on Trent stock, targets range Rs 2,950-4,455
Trent is a company that owns clothing stores called Zudio and Westside.
After the company shared news about how it did recently, money experts disagreed about its shares.
Some experts think the shares are a good deal and say people should buy them.
One expert thinks the shares cost too much and says people should sell them.
The experts think the share price could go anywhere from Rs 2,950 to Rs 4,455.
The company made good profits even when the cost of materials went up.
It is trying to grow by opening more Zudio stores and getting more customers.
The people who like the stock say the company's growth makes the high price worth it.
The article just gives experts' opinions, not a guarantee of what will happen.
Brokerage target prices on Trent range from Rs 2,950 (Citi) to Rs 4,455 (Antique Stock Broking).
Citi holds the only 'Sell' call on the stock among 14 brokerages.
Trent posted strong margin expansion in the quarter despite raw material inflation and supply chain risks, according to MOFSL.
Nuvama said cost efficiency rescued muted Q1 sales and maintained 'Buy' with a target of Rs 3,591.
Trent prioritised cluster-level revenue growth and market share gains, deepening Zudio penetration and ramping Westside store additions.
- Who
- Trent Ltd and analysts at brokerages including Citi, Antique Stock Broking, MOFSL, Nuvama, Goldman Sachs, IIFL and Ambit Capital.
- What
- Brokerages issued mixed ratings and target prices for Trent's stock after its quarterly results, ranging from Rs 2,950 to Rs 4,455.
- Where
- India.
- When
- Following Trent's recent quarterly (Q1) results; the articles give no specific date.
- Why
- Analysts weighed Trent's margin expansion and store-growth strategy against demanding valuations and rising input costs.
Bullish View
Bearish/Cautious View
Stock rating
Bullish View
MOFSL, Nuvama, IIFL and Ambit Capital are constructive, with Nuvama citing consistent margin surprises and MOFSL citing sustained store expansion and market share gains.
Bearish/Cautious View
Citi is the only brokerage with a 'Sell' call, while Goldman Sachs is 'Neutral', pointing to limited upside.
Valuation
Bullish View
Even at demanding multiples like 62x FY28 EPS, growth, margin upside and scaling emerging categories keep bulls constructive.
Bearish/Cautious View
Valuations are demanding, with Citi's Rs 2,950 target implying meaningful downside from current levels.
Business performance
Bullish View
Strong margin expansion and cost efficiency cushioned the business despite muted Q1 sales.
Bearish/Cautious View
Q1 sales were muted and rising input costs and supply chain risks remain concerns that management is still working to mitigate.
Key facts
- Company
- Trent Ltd (owns Zudio and Westside)
- Highest target price
- Rs 4,455 (Antique Stock Broking)
- Lowest target price
- Rs 2,950 (Citi)
- Sell rating
- Citi - the only 'Sell' among 14 brokerages
- MOFSL
- Buy, target Rs 3,775; stock at 62x FY28 EPS
- Nuvama
- Buy, target Rs 3,591 (raised from Rs 3,219); stock at 72x/58x FY27E/28E EPS
- Goldman Sachs
- Neutral, target Rs 3,000
- IIFL and Ambit Capital
- IIFL 'Add' at Rs 3,140; Ambit Capital target Rs 3,536
Quotes
Analyst at Antique Stock Broking
Equities research analyst
“"While valuations remain demanding at 62 times FY28 EPS, sustained execution on store expansion, driving market share gains with potential upside on margins, and the scaling of emerging categories keep us constructive,"”
businesstoday.in
Sources
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