Trent stock price: Trent stock surged 23% in two sessions on strong third-quarter results. Should I just do it at my current level?
The stock extended its gains by as much as 23% over two sessions.
Fashion and lifestyle company Trent reported consolidated net profit of ₹374.36 billion for the quarter ended December 30, up 124% year-on-year. Its profit in the corresponding quarter of the last fiscal stood at Rs 167 million. The company reported revenue of Rs 3,686 crore, up 50% year-on-year, from the Rs 2,460 crore reported by the company in the third quarter of 2023.
Read More: Trent Q3 Results: Cons PAT surges 124% year-on-year to Rs 374 crore, inventory up 15%
The brokerage firm’s recommendations are as follows:
Morgan Stanley: Equal Weight | Target: Rs 3,675
Morgan Stanley maintained its ‘equal weight’ stance on Trent stock and raised its target price to Rs 3,675 from Rs 2,307. The company’s third quarter was a strong one, surpassing Morgan’s estimates. The fashion sector reported a strong topline with positive margins. Morgan Stanley raised its FY 2024-26 EBITDA forecast by 14-17%, reflecting better-than-expected third quarter earnings. It said the risk-reward ratio remains balanced at current levels.
Jeffries: Hold | Target: 3,500
Jefferies reiterated its ‘hold’ view on Trent and raised its price target to Rs 3,500 from Rs 3,050. Trent continues to surprise on the positive side, adding that overall revenue growth has been impressive at normal levels. Ebitda margins hit an eight-quarter high, driven in part by improved gross margins. “Of course, we underestimated Zudio’s growth and management execution,” Jefferies said.
Nubama: Buy | Target: Rs 4,304
Trent delivered another stellar performance in the third quarter of 2024, with EBITDA/PAT beating Nuvama’s estimates by 21%/34%. Amid surging sales, gross margin improved compared to the same period last year, and despite aggressive store additions due to strong growth, EBITDA margin recorded 19% (+86% YoY), the securities firm said.
“Strong performance resets margin expectations, accelerating EPS by 20%/24% for FY24E/25E. Valuing Trent’s standalone business at 80x FY26 PE and giving separate valuation to subsidiaries/JVs yields revised target of Rs. Nuvama maintained ‘buy’ and said the stock rose to 4,304 from its previous target of Rs Rs 3,530.
(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own and do not represent the views of The Economic Times.)
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