Citi has initiated a ‘Buy’ call on Trent, with a price target of ₹9,250/share, offering an upside potential of 21.5% from the current market price of ₹7,615/share. The brokerage highlighted the company’s impressive transformation from a single-format retailer (Westside) to a multi-format, multi-category player that includes brands such as Zudio, Star, Samoh, Utsa, and Misbu.
This diversification strategy has helped Trent achieve a remarkable revenue CAGR of 36% between FY19-FY24, positioning it as an industry leader. Citi is forecasting even stronger growth for FY24-27, modeling revenue/EBITDA/PAT CAGRs of 41%, 44%, and 56%, respectively.
Citi also noted Trent’s strong supply chain capabilities and how the company is leveraging its operational expertise from Westside and Zudio to turn around its Star business and scale up newer ventures like Misbu, Samoh, and the MAS JV.
With this potential, Citi has included Trent in its Pan-Asia high-conviction Focus List, underlining its confidence in the company’s growth trajectory in the coming years.
