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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 quality company, based on a 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 neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 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.3 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 above its 5 year median of 16.54% indicating increasing margins.
Q.4 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 Historic Median
Gross Profit Margin 16.5 14.8
Operating Profit Margin 16.87 16.54
Net Profit Margin 9.51 7.19
Q.5 Return on Asset of Trent Ltd?
Trent Ltd Return on Asset is 18.58(x), which is above its 5 year historical median of 6.99(x), indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Trent Ltd?
Trent Ltd Return on equity is 30.59% for FY-2025 , which is above its historical median of 19.12%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Trent Ltd?
Trent Ltd Return on capital employed is 40% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Trent Ltd?
Trent Ltd Cash conversion cycle is 15 , below its historical median of 26 , indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 2.1 1.05
ROE 30.59 19.12
ROCE 40 32.49
Cash Conversion Cycle 15 26
Q.9 Debt to Equity ratio of Trent Ltd?
Trent Ltd Debt-to-Equity ratio is 0.08 , which is above with the industry average of 0 , indicating higher 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, indicating the business is able to service its debt comfortably.

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 9.28% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 16,668.1 3,857.6
Gross Profit 2,750.2 543.9
Operating Profit 2,812 577.5
Net Profit 1,585 277.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 2.1 0.53
ROE 30.59 7.07
ROCE 40 9.5
Cash Conversion Cycle 14.85 10

Valuation & price assessment

Q.1 Stock return of Trent Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 36.8% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 36.8% 39.6% 41.7% -18.9%
Q.3 Valuation ratios of Trent Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 74.77 0.00 69.86
Price to Book 19.2 9.80 3.21
Price to Sales 7.38 9.22 1.29
EV to EBITDA 36.83 52.08 13.01

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