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As part of the Tata Group, Trent primarily operates stores across five key concepts: Westside, Zudio, Star, Landmark, and Utsav. Its flagship concept, Westside, offers branded fashion apparel, footwear, accessories for women, men, and children, and a diverse range of home furnishings and décor. Zudio, the company’s value fashion concept, provides trendy fashion for men, women, and children at highly competitive price points, with exclusive in-house curated collections. Other formats include Star Bazaar, a chain of hypermarkets and supermarkets; Landmark, which features a curated selection of toys, frontlist books, stationery, and sports merchandise; and subsidiaries like Zara and Booker stores, which Trent operates in India

Investment Rationale

* Trent: Leading with Distinction: Trent reported strong Q2FY25 results, with revenue increasing 40% YoY to Rs 4,036 Cr and EBITDA growing 39% YoY, maintaining stable EBITDA margins of 16%. The strong performance is expected to sustain in Q3FY25 despite a challenging environment. The company’s differentiated business model, emphasis on private labels, efficient store economics, and rapid inventory turnover continues to outperform peers. Consistent leadership in key metrics such as revenue per store and margins positions Trent well for sustained growth, supported by its high-quality offerings and strategic expansion initiatives.

*. Zudio: Fast fashion revolutionised- Zudio has emerged as the key growth driver for Trent in recent years, driven by its fast fashion proposition targeting college students with affordable yet trendy apparel. This strategy has successfully attracted high footfall, while its cluster-based approach enables significant economies of scale. The brand’s distinct appeal and value-driven offerings continue to strengthen its dominance in the fast fashion segment.

*. Extensive retail network- Trent operates an extensive store network comprising 226 Westside stores, 577 Zudio stores, and 74 Star stores as of Sep’24, demonstrating the company’s commitment to reaching a broad customer base across diverse retail segments.

*. Outlook: Trent’s revenue performance remains impressive. Strong results are expected in the coming quarters, supported by the festive season. With its ongoing focus on store expansion and product assortment enhancement, Trent is well-positioned for growth across all its formats.

*. Recommandation: We recommend a BUY with a near-term TP of Rs 6,050, implying an upside of 10% from the CMP.

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