Explore the strategic analysis of Trent share price targets for 2024, 2025, 2030, 2040, and 2050, unlocking insights into its long-term growth potential and investment prospects.
About Trent Ltd.
Trent Limited, founded in 1952, is an Indian company specializing in retailing and trading merchandise such as apparel, footwear, accessories, toys, and more.
It operates several retail formats including Westside, Zudio, Utsa, StarHypermarket, Landmark, Misbu / Xcite, Booker Wholesale, and ZARA. Westside, its flagship brand, offers apparel, footwear, home furnishings, and decor for all ages.
Landmark focuses on family entertainment with toys, books, and sports merchandise. Zudio is a value retail format providing apparel and footwear, while Utsa offers ethnic wear and beauty products.
Additionally, Trent operates hypermarkets and supermarkets under the Star Market concept, offering a wide range of products including staples, beverages, and health and beauty items.
Company Profile
| Company type | Public |
| Traded as | NSE: TRENT, BSE: 500251 |
| Industry | Retail |
| Founded | 1998 (26 years ago) |
| Headquarters | Mumbai, Maharashtra, India |
| Revenue | ₹8,213 crore (US$1.0 billion) (FY23) |
| Net income | ₹554 crore (US$69 million) (FY23) |
| Parent | Tata Group |
| Subsidiaries | Westside, Zudio, Landmark Bookstores, Zara (India) |
| Website | trentlimited.com, westside.com |
Before predict it’s future price projections, let’s take a look of it’s Fundamentals, Technical and Past Performance Analysis.
Trent Ltd. Fundamental Analysis
| Market Cap | ₹ 1,37,664.30 Cr. |
| Enterprise Value | ₹ 1,38,083.39 Cr. |
| No. of Shares | 35.55 Cr. |
| P/E | 195.53 |
| P/B | 40 |
| Face Value | ₹ 1 |
| Div. Yield | 0.06 % |
| Book Value (TTM) | ₹ 96.81 |
| Cash | ₹ 78.86 Cr. |
| Debt | ₹ 497.95 Cr. |
| Promoter Holding | 37.01 % |
| EPS (TTM) | ₹ 19.80 |
| Sales Growth | 98.81 % |
| ROE | 19.12 % |
| ROCE | 32.49 % |
| Profit Growth | 122.16 % |
Trent Ltd. Profit & Loss – Last 3 Years Report
| Profit & Loss | MAR 2021 (In CR.) | MAR 2022 (In CR.) | MAR 2023 (In CR.) |
|---|---|---|---|
| Net Sales (Cr.) | 2,047.53 | 3,880.73 | 7,715.19 |
| Total Expenditure (Cr.) | 1,834.58 | 3,230.95 | 6,559.84 |
| Operating Profit (Cr.) | 212.95 | 649.78 | 1,155.35 |
| Other Income (Cr.) | 204.24 | 278.97 | 411.70 |
| Interest (Cr.) | 247.12 | 309.51 | 393.33 |
| Depreciation (Cr.) | 235.87 | 283.08 | 463.21 |
| Exceptional Items (Cr.) | -6.34 | -13.16 | 0 |
| Profit Before Tax (Cr.) | -72.14 | 323 | 710.51 |
| Tax (Cr.) | -21.12 | 73.37 | 155.94 |
| Net Profit (Cr.) | -51.02 | 249.63 | 554.57 |
| Adjusted EPS (Rs.) | -1.44 | 7.02 | 15.60 |
Trent Ltd. Balance Sheet – Last 3 Years Report
| Balance Sheet | MAR 2021 (In CR.) | MAR 2022 (In CR.) | MAR 2023 (In CR.) |
|---|---|---|---|
| Equity and Liabilities | |||
| Share Capital (Cr.) | 35.55 | 35.55 | 35.55 |
| Total Reserves (Cr.) | 2,480.31 | 2,684.49 | 3,044.39 |
| Borrowings (Cr.) | 0 | 497.38 | 497.95 |
| Other N/C liabilities (Cr.) | 2,409.47 | 3,911.36 | 3,544.59 |
| Current liabilities (Cr.) | 673.73 | 560.84 | 1,044.61 |
| Total Liabilities (Cr.) | 5,599.06 | 7,689.62 | 8,167.09 |
| Assets | |||
| Net Block (Cr.) | 2,895.14 | 4,480.45 | 4,338.76 |
| Capital WIP (Cr.) | 34.03 | 44.82 | 41.54 |
| Intangible WIP (Cr.) | 0 | 0 | 0 |
| Investments (Cr.) | 1,114.61 | 1,282.19 | 1,191.79 |
| Loans & Advances (Cr.) | 165.90 | 201.41 | 296.73 |
| Other N/C Assets (Cr.) | 82.29 | 82.47 | 81.21 |
| Current Assets (Cr.) | 1,307.09 | 1,598.28 | 2,217.06 |
| Total Assets (Cr.) | 5,599.06 | 7,689.62 | 8,167.09 |
Trent Ltd. Cash Flows – Last 3 Years Report
| Cash Flows | MAR 2021 (In CR.) | MAR 2022 (In CR.) | MAR 2023 (In CR.) |
|---|---|---|---|
| Profit from Operations (Cr.) | -65.80 | 336.16 | 710.51 |
| Adjustment (Cr.) | 277.28 | 293.25 | 409.91 |
| Changes in Assets & Liabilities (Cr.) | 113.12 | -402.03 | -270.73 |
| Tax Paid (Cr.) | -0.14 | -78.17 | -186.85 |
| Operating Cash Flow (Cr.) | 324.46 | 149.21 | 662.84 |
| Investing Cash Flow (Cr.) | -39.27 | -5.86 | -143 |
| Financing Cash Flow (Cr.) | -262.34 | -135.91 | -515.20 |
| Net Cash Flow (Cr.) | 22.85 | 7.44 | 4.64 |
The retail sector, encompassing food, apparel, consumer goods, finance, and leisure, thrives on India’s economic growth.
The evolving consumer market demands constant innovation for relevance.
With a shift to fashion, style, and fitness, the industry holds global export potential. Trent, a retail sector stock, exhibits promising financials:
- Sales Growth: Trent’s current sales are Rs 7,715.19 Cr, with a 3-year compounded growth of 34.40%.
- Operating Margin: Trent’s operational efficiency, reflected in the current year’s 14.98% operating margin, is noteworthy.
- Current Ratio: A healthy current ratio of 2.12 indicates Trent’s ability to generate ample cash for working capital needs.
- Return Ratios: Trent boasts a 6.99% Return on Assets (ROA) and a 19.12% Return on Equity (ROE) for the current year, with a 3-year average ROE of 8.87%.
- Dividend Yield: The current dividend of Rs 2.20 yields 0.06%, providing insight into the return relative to the stock price.
- Share Price: Trent’s current share price of Rs 3,607.50 invites evaluation for potential undervaluation or overvaluation using valuation calculators.
Trent Ltd. Strengths & Weakness
Strengths
- Over the past 3 years, the company has achieved a robust profit growth of 53.09% and a solid revenue growth of 34.40%.
- Demonstrating efficient operations, the company maintains a Cash Conversion Cycle of 14.47 days.
- With a current ratio of 2.12, the company boasts a healthy liquidity position.
- Effective cash flow management is evident with a CFO/PAT ratio of 1.48.
Weakness
- The company is currently trading at a high P/E ratio of 195.53, indicating potentially elevated market expectations.
- Similarly, the company is trading at a high EV/EBITDA ratio of 72.92, suggesting a relatively high valuation compared to its earnings before interest, taxes, depreciation, and amortization.
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Past Performance:
- Growth Trajectory: Trent has seen consistent revenue and profit growth over the past five years, reflecting its strong brand presence and operational efficiency. In FY23, revenue reached ₹8,213 crore, and net income stood at ₹554 crore.
- Stock Price Fluctuations: While the overall trend has been positive, the stock hasn’t been immune to market volatility. In the past year, it has seen highs of ₹4,200 and lows of ₹2,800.
Market Factors:
- Rising Retail Demand: India’s growing population and increasing disposable income bode well for the retail sector. E-commerce expansion also presents an opportunity for Trent’s online presence.
- Competition: The retail landscape is fiercely competitive, with established players and emerging online rivals vying for market share.
- Economic Environment: Global economic uncertainties and inflation can impact consumer spending patterns, influencing Trent’s performance.
Expert Opinions:
- Analysts’ Targets: Several analysts have issued price targets for Trent, ranging from ₹3,070 in 2024 to ₹4,689.95 in 2027, indicating bullish sentiment.
- Industry Experts: Industry experts highlight Trent’s strong brand portfolio, focus on innovation, and efficient operations as key strengths for future growth.
Our Opinon:
- Focus: Consolidation and expansion. Expect continued store openings for both Westside and Landmark, potentially in new cities or premium locations. This could see online sales gaining traction too.
- Market Factors: Continued economic recovery post-pandemic is crucial. Rising disposable incomes and increasing retail demand will be key drivers.
- Price Target: Analysts predict a bullish scenario with a target of ₹4,453.94. This assumes positive market sentiment and successful execution of expansion plans.
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- Focus: Brand positioning and differentiation. Maintaining Westside’s fashion relevance and exploring new store formats for Landmark will be crucial.
- Market Factors: E-commerce competition will likely intensify. Adapting to changing consumer preferences and leveraging online presence effectively will be important.
- Price Target: A target around ₹4,450 – ₹6,010 is possible if brand strategies resonate with consumers, and the company navigates the competitive landscape effectively.
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- Focus: Long-term sustainability and market leadership. Expanding across India and exploring international markets could be on the cards.
- Market Factors: Technological advancements and changing consumer demographics will significantly impact the retail landscape. Adapting to these changes will be vital.
- Price Target: Assuming sustained growth and economic stability, a range of ₹9,000- ₹13,000 seems feasible. This would require consistent brand evolution, successful market expansion, and navigating potential economic challenges.
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- Scenario 1: Slow and Steady Growth: ₹15,000 – ₹22,000
- This assumes Trent maintains its current market share, expands moderately, and adapts to some major trends like AI and sustainability.
- Scenario 2: Disruptive Innovation: ₹25,000 – ₹40,000
- This assumes Trent becomes a leader in AI-driven retail, explores metaverse opportunities, and achieves significant brand differentiation.
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- Scenario 1: Continued Adaptation: ₹45,000 – ₹70,000
- This assumes Trent successfully navigates major disruptions like advanced technologies and ethical considerations, maintaining its market position.
- Scenario 2: Market Leader: ₹70,000 – ₹100,000
- This highly optimistic scenario assumes Trent becomes a global leader in innovative retail, potentially expanding into space-based markets or becoming a key player in the metaverse.
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FAQs
Q. Does Trent Ltd. pays dividends?
Yes, Trent Ltd. does pay dividends to its shareholders.
Dividend History:
In the past year (FY2023), Trent Ltd. paid a dividend of ₹2.20 per share.
In the previous financial year (FY2022-2023), they declared a dividend of ₹1.10 per share.
Their dividend yield, based on the current share price (as of February 7, 2024), is approximately 0.07%.
As per company strong financials and steady growth represent a positive indicators for hiting the target price range in upcoming year 2025.
As per Experts, Trent Ltd. estimated to reach at ₹9,000 to ₹13,000.
