Trent Ltd Stock Analysis

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

BSE Share Price 23-Sep-2022 18:01
1430.90 -57.90 (-3.89%)

DeciZen - Make an Informed Decision on Trent

Overall Rating

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Semi Strong

Trent Price Chart

P/E Ratio (SA) :
116.67
Market Cap :
50,866.7 Cr.
52-wk low :
971
52-wk high :
1,522.8
Bole Toh?

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 Somewhat overvalued zone.

3. Is Trent Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Trent Ltd is likely to Rise-somewhat 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'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 3.2%2.3%1.3%7%6.3%7.9%7.9%12.2%4.5%15.4%-
Value Creation Index -0.8-0.8-0.9-0.5-0.5-0.4-0.40.1-0.60.4-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 9911,3171,4401,5831,8262,0662,5323,1782,0483,8815,206
YoY Gr. Rt. %-32.8%9.3%9.9%15.3%13.2%22.5%25.5%-35.6%89.5%-
Adj EPS 1.30.80.32.62.63.83.93.6-1.3712.3
YoY Gr. Rt. %--38%-65%828.6%0%45.4%3.4%-8.4%-136.9%NA-
BVPS (₹) 46.139.641.343.146.448.751.170.370.876.579.4
Adj Net Profit 4326.69.286.386.3126130127-46.8249436
Cash Flow from Ops. 40.9-825.910864.210328.2369324149-
Debt/CF from Ops. 5.5-28.28.73.76.13.817.50.80.93.3-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 16.4%16.3%15.3%89.5%
Adj EPS 20.7%21.9%21.4%NA
BVPS 5.810.514.48.1
Share Price 28.8% 38% 40.4% 44.6%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 31.90.76.25.887.86.1-1.99.515.7
Op. Profit Mgn % 5.83.14.96.87.611.110.318.210.516.818.6
Net Profit Mgn % 4.320.65.54.76.15.14-2.36.48.4
Debt to Equity 0.20.20.20.30.30.20.30.10.10.2-
Working Cap Days 216167138110103969998152950
Cash Conv. Cycle 151415161811182430260

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 15.70%

Sales growth is growing at healthy rate in last 3 years 15.30%

Net Profit is growing at healthy rate in last 3 years 21.42%

Sales growth is good in last 4 quarters at 167.43%

No data to display

Latest Financials - Trent Ltd.

Standalone Consolidated
TTM EPS (₹) 12.3 10.2
TTM Sales (₹ Cr.) 5,206 5,809
BVPS (₹.) 79.4 68.8
Reserves (₹ Cr.) 2,787 2,409
P/BV 18.02 20.81
PE 116.67 140.15
From the Market
52 Week Low / High (₹) 971.00 / 1522.80
All Time Low / High (₹) 5.14 / 1522.80
Market Cap (₹ Cr.) 50,867
Equity (₹ Cr.) 35.6
Face Value (₹) 1
Industry PE 115

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 (%)

News

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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