Trent Ltd - Stock Valuation and Financial Performance

BSE: 500251 | NSE: TRENT | Retailing | Large Cap

Trent Share Price

5,647.95 8.70 0.15%
as on 12-Jul'24 16:01

DeciZen - make an informed investing decision on Trent

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Trent stock performance -

mw4me loader
P/E Ratio (SA):
139.83
Market Cap:
2,00,777.6 Cr.
52-wk low:
1,657.3
52-wk high:
5,664.9

Is Trent Ltd an attractive stock to invest in?

1. Is Trent Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Trent Ltd is a good quality company.

2. Is Trent Ltd undervalued or overvalued?

The key valuation ratios of Trent Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Trent Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Trent Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of Trent:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Trent Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 0.7%7%6.3%7.9%7.8%13%4.3%15.1%21.5%27.8%-
Value Creation
Index
-1.0-0.5-0.5-0.4-0.40.2-0.60.30.91.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,3581,4921,7172,0662,5323,1782,0483,8817,71511,92711,927
Sales YoY Gr.-9.9%15.1%20.4%22.5%25.5%-35.6%89.5%98.8%54.6%-
Adj EPS 02.62.63.83.94.1-1.56.712.826.440.4
YoY Gr.-NA0%45.4%3.2%5.9%-135.6%NA90.4%105.7%-
BVPS (₹) 41.343.146.448.751.170.370.876.586.6125.1125.1
Adj Net
Profit
-0.186.386.3126130147-52.32404569381,436
Cash Flow from Ops. 25.910864.210328.23693241496631,348-
Debt/CF from Ops. 8.73.76.13.817.50.80.93.30.80.4-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 27.3%36.3%79.9%54.6%
Adj EPS NA46.6%NA105.7%
BVPS13.1%19.6%20.9%44.4%
Share Price 47% 65.6% 82.7% 238.8%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
-06.25.887.87-2.19.215.724.932.3
Op. Profit
Mgn %
5.17.28.111.110.318.210.516.81516.516.2
Net Profit
Mgn %
-05.856.15.14.6-2.66.25.97.912
Debt to
Equity
0.20.30.30.20.30.10.10.20.20.10.1
Working Cap
Days
13811010396999815194746640
Cash Conv.
Cycle
1715151118243026271920

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 32.30%

Sales growth is growing at healthy rate in last 3 years 79.93%

Sales growth is good in last 4 quarters at 54.70%

Net Profit has been subdued in last 3 years 0.00%

Latest Financials - Trent Ltd.

Standalone Consolidated
TTM EPS (₹) 40.4 41.8
TTM Sales (₹ Cr.) 11,927 12,375
BVPS (₹.) 125.1 114.4
Reserves (₹ Cr.) 4,412 4,032
P/BV 45.15 49.36
PE 139.83 135.04
From the Market
52 Week Low / High (₹) 1657.25 / 5664.85
All Time Low / High (₹) 5.14 / 5664.85
Market Cap (₹ Cr.) 2,00,778
Equity (₹ Cr.) 35.6
Face Value (₹) 1
Industry PE 113.1

Management X-Ray of Trent:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Trent

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales1,3581,4921,7172,0662,5323,1782,0483,8817,71511,927
Operating Expenses 1,2931,3901,5831,8522,2822,6031,8353,2316,5609,954
Manufacturing Costs228180183191204184157225396553
Material Costs6817218069591,2321,6041,0301,9014,2166,541
Employee Cost 124132166203252313255338580938
Other Costs 2603564285005935033937681,3681,923
Operating Profit 651021342142495742136501,1551,973
Operating Profit Margin (%) 4.8%6.9%7.8%10.4%9.8%18.1%10.4%16.7%15.0%16.5%
Other Income 7489594337157204279412351
Interest 1747454350254247310393355
Depreciation 4035384246231236283463639
Exceptional Items 56025000-6-130543
Profit Before Tax 139109135172189246-723237111,873
Tax 392328556291-2173156438
Profit After Tax 10087107117127155-512505551,436
PAT Margin (%) 7.4%5.8%6.2%5.6%5.0%4.9%-2.5%6.4%7.2%12.0%
Adjusted EPS (₹)3.02.63.23.53.84.4-1.47.015.640.4
Dividend Payout Ratio (%)33%35%31%33%34%23%-42%24%14%8%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 1,3721,4331,5411,6171,6972,4992,5162,7203,0804,447
Share Capital 33333333333636363636
Reserves 1,3391,4001,5081,5841,6642,4632,4802,6843,0444,412
Minority Interest0000000000
Debt75962913913943000497498499
Long Term Debt75961001003003000497498499
Short Term Debt001912929500000
Trade Payables143149156195229256220314644752
Others Liabilities 3693961891082342,2332,8644,1583,9461,705
Total Liabilities 1,9582,0742,1772,3122,5535,2885,5997,6908,1677,403

Fixed Assets

Gross Block5565906537628363,0233,5175,3255,5163,290
Accumulated Depreciation1641741962182424336208431,176915
Net Fixed Assets3924164565455952,5892,8974,4824,3402,374
CWIP 46545108523344542161
Investments 1,0371,0861,1131,0529411,6071,7291,7241,6481,902
Inventories2502702983394895873958221,3371,565
Trade Receivables22313141321163179
Cash Equivalents 292532305144677479286
Others Assets2012212703233784254575266901,035
Total Assets 1,9582,0742,1772,3122,5535,2885,5997,6908,1677,403

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 2610864103283693241496631,348
PBT 82109110172190246-663367111,330
Adjustment -43-10194752315277293410585
Changes in Working Capital -1928-34-67-136-111113-402-271-272
Tax Paid 5-19-31-49-78-810-78-187-294
Cash Flow From Investing Activity 4-89-11-30-46-757-39-6-143-499
Capex -112-134-68-130-186-105-81-198-214-382
Net Investments -40-71888223-524972337-91
Others 156523911-83-128-56-4164-25
Cash Flow From Financing Activity -34-21-47-7438382-262-136-515-642
Net Proceeds from Shares 0300100009500000
Net Proceeds from Borrowing 0000299-1000-30000
Interest Paid -7-20-33-32-22-244-173-235-356-308
Dividend Paid -27-75-1-40-46-52-36-43-39-78
Others 0-226-114-2-193-173-54442-120-257
Net Cash Flow -4-26-121-72375207
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)7.446.177.197.397.697.37-2.039.5419.1238.15
ROCE (%)9.939.139.5710.911.3920.036.2320.9732.4952.29
Asset Turnover Ratio0.750.790.8611.140.880.410.631.051.65
PAT to CFO Conversion(x)0.261.240.60.880.222.38N/A0.61.190.94
Working Capital Days
Receivable Days1011213212
Inventory Days65605752555781534741
Payable Days82746967635584513434

Trent Ltd Stock News

Trent Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Trent on 12-Jul-2024 16:01 is ₹5,648.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 12-Jul-2024 16:01 the market cap of Trent stood at ₹2,00,777.6.
The latest P/E ratio of Trent as of 12-Jul-2024 16:01 is 139.8.
The latest P/B ratio of Trent as of 12-Jul-2024 16:01 is 45.15.
The 52-week high of Trent is ₹5,664.9 and the 52-week low is ₹1,657.3.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Trent is ₹11,927 ( Cr.) .

About Trent Ltd

Trent Ltd. was established in 1998 and part of the Tata group. Trent is headquartered in Mumbai but has pan-India operations. Trent is one of the leading players in the branded retail industry in India. The Company's segments include Retailing and Others. It primarily operates stores across three formats: Westside, Star, Landmark and Zudio.

Trent’s value fashion concept - Zudio offers fashion at irresistible prices for women, men and children. Exclusive fashion is curated in-house and made available at very sharp price points.  Zudio  has  evolved  into  a  growing  standalone  concept  along  with  improved  quality of presence within select Star stores. Hypermarket and supermarket store chain - operating under ‘Star Market’ concept offers an assortment of products, including staples, beverages, health & beauty products along with a comprehensive fresh offering (vegetables, fruits, dairy, non vegetarian products). The offering is also supported by a compelling range of own brands at attractive prices. Star witnessed encouraging traction during the year and the Star Market format is increasingly viewed as a differentiated & sustainable model affording further expansion with better returns and throughput.

A family entertainment concept - Landmark offers a curated range of toys, front list books, stationery and sports merchandise. Backend operations relating to the concept are significantly integrated with Westside to realize synergies and contain overhead costs. Trent’s latest concept – Utsa is a modern Indian lifestyle destination which offers ethnic apparel, beauty products and accessories. The merchandise includes a selection of Westside’s Indianwear offer along with additional exclusive styles housed in an appealing space between 2,000 - 3,000 sq ft. Backend operations are integrated with Trent’s other concepts to realize synergies. The concept is operational through stores launched during the year in Pune and Vadodara.

Business area of the company

The company is engaged in the retail sale of readymade garments. Trent’s flagship concept- Westside offers branded fashion apparel, footwear and accessories for women, men and children, along with a range of home furnishings & decor. This offer is presented through a differentiated portfolio of exclusive brands that are in tune with latest fashion trends appealing to a wide spectrum of style conscious consumers across defined customer segments. This differentiated approach also aids in competing effectively in the face of disintermediation risks posed by diverse competition.

Awards

Trent

  • Trent’s retail brand Westside received Most Admired Large Format Retail Chain of the Year at Lycra Images Fashion Awards 2005.
  • Trent was honoured with NDTV Profit Business Leadership Awards 2006 - Retail Category.  
  • Trent has received following awards during FY20:

Westside

  • Best Departmental Store of the year at MAPIC India Retail Awardsb.   
  • Best Customer Relationship Management at MAPIC India Retail Awards.

Star

  • Supermarket of the Year Award at Annapoorna Food Retail Awards.
  • Special Category Award - Persons with Disabilities at Retail Awards 2020 - National   Winner is a Sales Associate at Star.
  • Energy Conservation Award-STAR hosted by The Tata Power Company Limited.
  • IMAGES Most Admired Brand Retail Partnership of the Year: Cadbury Dairy Milk and Star.
  • IMAGES Most Admired Marketing Campaign of the Year: Customer Chain Coupons by Star.

Milestones

  • 2004 - The company ventured in hypermarket business with Star Bazaar. This outlet is currently located in 3 cities namely Ahmedabad, Mumbai and Bangalore. It offers wide range of products affordable prices such as at staple foods, beverages, health and beauty products, vegetables, fruits, dairy products, consumer electronics and household items.
  • 2008 - Trent announced an association with Tesco Plc, the UK’s leading retailer and one of the world’s top three leading international retailers. This arrangement will allow Trent access to Tesco’s extensive retail expertise and technical capability including world class IT systems, processes and best practices in functions like marketing, stock management, retail information systems, cold-chain infrastructure and front-end services to drive the growth of Trent’s hypermarket business, which is operated under the name Star Bazaar.
  • 2009 - Trent announced a joint venture with Inditex Group to develop and promote Zara stores in India. Inditex is one of the world’s biggest fashion retailers from Spain.In the MoU signed, Inditex would hold 51 per cent while Trent would hold a 49 per cent stake in the joint venture company.
  • 2013 - The Board of Directors of the Company approved a Scheme of Amalgamation and Arrangement (‘The Scheme’) between Landmark Limited, Fiora Link Road Properties Limited and Trexa ADMC Private Limited with the Company.
  • 2014 - Trent's westside opens stores at 'Sun City' Jodhpur, 5th Store at Bengaluru, 9th store in Borivali and 5th Store in Chennai during the year.
  • 2014 - One of India’s largest and fastest growing chain of retail stores,Trent's Westside announced the launch of private label teen fashion brand ‘Y&F ' Young and Free’.
  • 2017 - Trent had acquired value fashion apparel business ‘Zudio’ from Trent Hypermarket Private Limited (THPL).
  • 2019 - The company has acquired 51% of the share capital of Booker India Limited (BIL) thereby making it a subsidiary of the Company with effect from 28th September 2019.
  • 2020 - Trent has entered into a definitive agreement to acquire 100% of the share capital of Common Wealth Developers.
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