News

Motilal Oswal's research report on Trent

Trent’s 4QFY25 revenue growth moderated to ~29% YoY (vs. 37% YoY in 3Q), as SSSG came down to a mid-single digit in 4Q (vs. high-single digit in 3Q and double digits in 2Q). However, store additions remained robust, with net store additions of 13/130 in WestSide/Zudio (up ~29% YoY). Gross margin contracted ~265bp YoY, likely due to higher discounts and rising salience of Zudio in the revenue mix. Despite weaker gross margin, Trent delivered ~11% EBITDA beat, driven by superior cost controls (employee/occupancy costs up 3%/7% YoY). Star growth also moderated with a modest ~2% LFL. Our FY26-27 estimates are broadly unchanged. We build in FY25-27E CAGR of ~25-26% in standalone revenue/EBITDA/PAT, driven by continuation of robust area additions in Zudio.

Outlook

We assign 55x Mar’27E EV/EBITDA to the standalone business (Westside and Zudio; a premium over our Retail Universe, given TRENT’s superlative growth), 2.5x FY27E EV/sales to Star JV, and ~7x EV/EBITDA to Zara JV to arrive at our TP of INR 6,900. Adjusting the value of Star and Zara, the stock is trading at 73x FY27E PE for the standalone business (vs. ~90x LT average 1-year forward PE). We reiterate our BUY rating.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Trent - 01052025 - May

Discover the latest Business News, Budget 2025 News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Stock Market Holiday Jammu Kashmir News Live Waves Summit 2025 Live Heatwave in India Q4 Results 2025 Live Hit 3 Review JKBOSE 10th Result 2025 Kolkata News Retro Movie Review IPL Points Table 2025

Business Markets Stocks India News City News Economy Mutual Funds Personal Finance IPO News Startups

Home Currencies Commodities Pre-Market IPO Global Market Bonds

Home Loans up to 50 Lakhs Credit Cards Lifetime Free Finance TrackerNew Fixed Deposits Fixed Deposit Comparison Fixed Income

Home MC 30 Top Ranked Funds ETFs Mutual Fund Screener

Income Tax Calculator EMI Calculator Retirement Planning Gratuity Calculator

Stock Markets

News18 Firstpost CNBC TV18 News18 Hindi Cricketnext Overdrive Topper Learning

About Us Contact Us Advisory Alert Advertise with Us SupportDisclaimer Privacy Policy Cookie Policy Terms & Conditions Financial Terms (Glossary) Sitemap Investors

You are already a Moneycontrol Pro user.