StocksMarket.in

Buy Trent; target of Rs 500: Motilal Oswal

July 11
14:25 2019

Motilal Oswal ‘s research report on Trent

Trent (TRENT) appears well positioned to capitalize on India’s high-growth retail apparel market, given its ability to execute well in a fast-changing operating environment. The company is embarking on an accelerated growth strategy, particularly at Westside (with its thrust on women-centric fashion and private labels) and Zudio (margin-accretive apparel line-up), both of which hold a strong brand promise. In this note, we provide the rationale behind our positive stance on the company.

Outlook

We raise our SOTP-based TP to INR500 (v/s INR440 earlier), valuing Westside and Zara at 26x EV/EBITDA and Star at 1x EV/sales on Sep’21E. Westside and Zara are valued at a 30% premium to industry average. The implied TP is at par with the three-year average. Maintain Buy.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Related Articles

Archives