Check Before You Invest : Trent Ltd

BSE: 500251 NSE: TRENT ISIN: INE849A01020

| Sector: Retail | Industry: Retailing

Snapshot

Q.1 Which industry/sub-sector does Trent Ltd belong to?

Trent Ltd belongs to the Retail sector, operating specifically within the Retailing segment.

Q.2 Is Trent Ltd a good quality company?

Trent Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Trent Ltd undervalued or overvalued?

Trent Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Trent Ltd a good buy now?

Trent Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Trent Ltd?

Trent Ltd revenue growth is 39.8% for FY-2025, which is above its 5-year CAGR of 39.3%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Trent Ltd?

Trent Ltd Return on capital employed is 40% for FY-2025, which is above its 5-year historical median of 32.49%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.3 Return on Asset of Trent Ltd?

Trent Ltd Return on Asset is 18.58%, which is above its 5-year historical median of 6.99%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Trent Ltd?

Trent Ltd Return on equity is 30.59% for FY-2025, which is above its 5-year historical median of 19.12%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Trent Ltd?

Trent Ltd Cash conversion cycle is 15 days, below its 5-year historical median of 26 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	2.1	1.05
ROE	30.59	19.12
ROCE	40	32.49
Cash Conversion Cycle	15 days	26 days

Q.6 Gross Profit margin of Trent Ltd?

Trent Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.5% for FY-2025, which is above its 5-year median of 14.8%, indicating increasing margins.

Q.7 Operating Profit Margin of Trent Ltd?

Trent Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.87% for FY-2025, which is in line with its 5-year median of 16.54% indicating stable margins.

Q.8 Net Profit Margin of Trent Ltd?

Trent Ltd Net Profit Margin is 9.51% for FY-2025, is above with its 5-year median of 7.19%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	16.5	14.8
Operating Profit Margin	16.87	16.54
Net Profit Margin	9.51	7.19

Q.9 Debt to Equity ratio of Trent Ltd?

Trent Ltd Debt-to-Equity ratio is 0.08, which is lower with the industry average of 0.12, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Trent Ltd?

Trent Ltd Debt to cash flow from operations is 0.3, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Trent Ltd?

Promoters hold 37.01% of the Trent Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Trent Ltd vs industry peers?

Trent Ltd revenue CAGR is 39.30%, compared to the industry median CAGR of 28.93%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	39.8	28.9
Gross Profit Growth	49.7	30.5
Operating Profit Growth	42.5	26.9
Net Profit Growth	10.4	38

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	2.1	1.89
ROE	30.59	16.63
ROCE	40	25.74
Cash Conversion Cycle (days)	14.85	23

Valuation & price assessment

Q.1 Stock return of Trent Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 37.7% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	37.7%	39.1%	43.2%	-22.7%

Q.3 Valuation ratios of Trent Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	75.1	122.30	37.16
Price to Book	19.18	20.24	2.93
Price to Sales	7.5	11.27	1.30
EV to EBITDA	36.84	51.18	14.03

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