'Sell' Trent Shares Maintains HDFC Securities — Here's Why

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

HDFC Securities Institutional Equities

Revenue growth of ~40% YoY and a 110 bps YoY margin expansion YoY (to 12.8%) in FY25—for a portfolio where two-thirds of sales come from value fashion.

Unheard of! We concur: Trent Ltd. is by far the most efficient fashion and lifestyle play in India. Now that this fact is out of our system and in the price, we prefer focusing on assessing whether it is nearing peak operating performance across its portfolio.

We suspect

1. Westside is showing signs of customer fatigue,

2. Zudio’s efficiency is optimal,

3. success in Star is not a cinch.

We’ll double-click on each in a bit. We build in 23% revenue and PBT CAGR over FY25-27 (8-10% lower than consensus).

We maintain Sell on Trent with an SOTP-based target price of Rs 4,300/share (including 60 times adjusted price/earnings for the standalone operations).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.