
Shares of Trent Limited, a Tata Group company, rose by nearly 5% in early trade on January 15 after Elara Capital initiated coverage on the stock with a ‘Buy’ rating. The brokerage set a target price of ₹8,500, indicating a potential upside of 38%.
Trent shares were trading at ₹6,438.95, up 4.51% or ₹277.80 from the previous close of ₹6,161.15. The stock’s intraday range was ₹6,164.70 to ₹6,519.00. With a market capitalization of ₹2.28 trillion, the stock is trading close to its 52-week high of ₹8,345. The average volume for the day stood at 769.60K shares.
Trent Share Price history
Day | Open | Close | Change % |
---|---|---|---|
Tue, Jan 14 2025
|
₹6,237.40
|
₹6,161.15
|
-1.02%
|
Mon, Jan 13 2025
|
₹6,462.65
|
₹6,224.40
|
-5.46%
|
Fri, Jan 10 2025
|
₹6,601.00
|
₹6,584.10
|
-0.57%
|
Thu, Jan 9 2025
|
₹6,719.00
|
₹6,621.70
|
-1.16%
|
Wed, Jan 8 2025
|
₹6,869.55
|
₹6,699.10
|
-2.55%
|
Tue, Jan 7 2025
|
₹7,010.20
|
₹6,874.30
|
-1.77%
|
Mon, Jan 6 2025
|
₹7,307.70
|
₹6,998.35
|
-4.23%
|
Fri, Jan 3 2025
|
₹7,350.00
|
₹7,307.70
|
-0.18%
|
Key Highlights:
- Zudio’s Leadership in Fast Fashion:
- Zudio, one of Trent’s leading brands, is expected to maintain dominance in the fast fashion space.
- The brand benefits from:
- A successful private label strategy.
- Differentiated fashion offerings driving robust traction.
- A focus on product quality at reasonable price points, along with strong organic growth.
- Impressive Growth Projections:
- The fast fashion segment, led by Zudio, is forecasted to grow at a CAGR of 31% through FY27E. By FY27E, fast fashion is expected to account for 14% of the apparel industry, up from 10% in FY24.
- Financial Outlook:
- Elara anticipates Trent’s consolidated financials to grow at:
- Revenue CAGR: 27%
- EBITDA CAGR: 29%
- Adjusted PAT CAGR: 38%
- This is significantly higher than the 16% CAGR estimated for the overall apparel industry during FY24-28E.
- Elara anticipates Trent’s consolidated financials to grow at:
- Valuation and Strategic Positioning:
- The standalone business is valued at 57x EV/EBITDA (Sep ’27E).
- Star Bazaar is valued at 4x EV/sales, while Zara and Massimo Dutti partnerships are pegged at 30x EV/EBITDA.
- Trent’s unique store formats and strong brand recall give it an edge over competitors.
Disclaimer: This article is based on analysis and projections by Elara Capital and is for informational purposes only. It should not be considered as financial or investment advice. Always consult a financial expert before making investment decisions.