Trent, a big name in fashion and lifestyle, showed impressive results on Friday. They announced a 33% year-on-year growth in their net profit for the third quarter of the fiscal year 2025, reaching Rs 497 crore, up from Rs 374 crore last year. Their total sales also saw a big jump: Rs 4,657 crore this quarter is 34% higher than the Rs 3,467 crore from the same time last year. But, the profit after tax (PAT) was a little lower than what experts expected, who predicted Rs 520 crore.
Compared to the previous quarter (Q2 FY25), their profit rose by 47% from Rs 339 crore, while sales grew by 12%. Trent is actively opening new stores and now has over 850 large stores, with new ones in 201 cities. They launched 14 Westside and 62 Zudio stores in this quarter alone, including their first in Dubai.
In a statement, CEO Noel N. Tata expressed confidence in the company’s growth and the quality of their stores. He believes that Trent’s popular ‘Star’ business will continue to grow and provide great value for customers and shareholders.
What Analysts Are Saying About Trent’s Stock:
– Jefferies: They have a ‘Hold’ rating for Trent and lowered their target price from Rs 5,900 to Rs 5,800. They think earnings are consistent but revenues were slightly lower than expected.
– Bernstein: They kept an ‘Outperform’ rating but reduced their target price from Rs 8,100 to Rs 6,900. They see positives in the store openings but are concerned about slower same-store sales growth (SSSG).
– Morgan Stanley: They maintained an ‘Overweight’ rating with a target price of Rs 8,032. They noted that while sales were lower than expected, the overall earnings performance was strong, especially with a 25% increase in revenue from the Star business.
(Disclaimer: The opinions and views mentioned here are those of the analysts and do not reflect the views of NiftyStat.)
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