Trent market cap edges toward ₹2 lakh crore amid unbroken 7-month surge in stock price

Remarkably, Trent crossed the ₹1 lakh crore marketplace headdress people successful December past year, adding different ₹95,000 crore successful little than 7 months.

This awesome show reflects Trent's sustained upward trajectory since December, consistently closing each period with gains. As a result, the banal has appreciated by 95% during this period.

Looking adjacent back, the banal has been maintaining a beardown upward inclination since January 2023, resulting successful a singular summation of 358% to date.

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Despite this awesome show implicit a comparatively abbreviated period, analysts support a affirmative outlook connected the stock's valuations. They judge that the company's robust maturation justifies its premium valuation successful the market.

The institution operates a portfolio of retail concepts. The superior lawsuit propositions of Trent see Westside, 1 of India's starring chains of manner retail stores, Zudio, a one-stop destination for large manner astatine large worth and Trent Hypermarket, which operates successful the competitory food, grocery, and regular needs conception nether the Star banner.

Analysts expect continued momentum

Trent continues to outperform the discretionary class with exceptional resilience, according to Motilal Oswal's caller report. Despite wide muted request successful the sector, Trent has achieved industry-leading like-for-like (LFL) maturation of +10%, importantly enhancing its marketplace stock successful the apparel segment, peculiarly successful the worth format.

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The company's beardown show is attributed to robust same-store income maturation (SSSG), businesslike store operations, and the palmy positioning of Zudio arsenic a compelling worth proposition.

Motilal Oswal highlights Trent's prudent enlargement strategy, which includes assertive store additions without compromising its fiscal wellness oregon operational efficiency. The brokerage forecasts a important maturation trajectory implicit the adjacent 3 to 5 years, estimating a CAGR of 36% successful standalone gross and 34% successful EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) from FY24 to FY26.

This maturation outlook supports the premium valuation of the stock, with Motilal Oswal assigning a people terms of ₹5,800 based connected 57x FY26E EPS for the standalone business, alongside abstracted valuations for Star Bazaar and Zara.

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Phillip Capital besides maintains an optimistic presumption connected Trent, emphasising the company's beardown fiscal fundamentals, including steadfast currency flows, a thin equilibrium sheet, robust instrumentality ratios, and coagulated profitability.

Despite the premium valuations, Phillip Capital underscores Trent's resilience and strategical strengths, reaffirming a ‘buy' standing with a people terms of ₹5,811 based connected September 2026 projections.

However, the brokerage acknowledges imaginable risks specified arsenic anemic request successful Tier 2–3 cities and the gradual turnaround of Star Bazaar.

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Disclaimer: The views and recommendations fixed successful this nonfiction are those of idiosyncratic analysts. These bash not correspond the views of Mint. We counsel investors to cheque with certified experts earlier taking immoderate concern decisions.

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Published: 28 Jun 2024, 01:00 PM IST