Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500251 | NSE: TRENT

Trent Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:19 pm

Market Cap 2,29,913 Cr.
Current Price 6,460
High / Low8,346/2,630
Stock P/E169
Book Value 132
Dividend Yield0.05 %
ROCE23.8 %
ROE27.2 %
Face Value 1.00
PEG Ratio1.39

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Trent Ltd

Competitors of Trent Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Go Fashion (India) Ltd 5,740 Cr. 1,0641,408/93367.0 1210.00 %15.7 %14.6 % 10.0
7NR Retail Ltd 14.7 Cr. 5.2410.7/4.72 9.870.00 %3.31 %4.00 % 10.0
Vaibhav Global Ltd 4,475 Cr. 269543/26334.7 77.92.23 %14.0 %10.8 % 2.00
V2 Retail Ltd 4,251 Cr. 1,2261,484/222102 83.50.00 %10.8 %10.6 % 10.0
Trent Ltd 2,29,913 Cr. 6,4608,346/2,630169 1320.05 %23.8 %27.2 % 1.00
Industry Average46,513.83 Cr1,416.4679.1883.800.37%14.12%16.07%7.57

All Competitor Stocks of Trent Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales4921,1781,4991,3291,8031,9532,3032,1832,6282,9823,4673,2984,104
Expenses5579681,2261,2041,5121,6971,9801,9802,2612,5262,8382,8283,492
Operating Profit-65210273125292256323203367457629470613
OPM %-13%18%18%9%16%13%14%9%14%15%18%14%15%
Other Income415742447884918979105110695102
Interest71757781959191929295993332
Depreciation69738089127112118137141152165213181
Profit before tax-164119157-114713720464212314475919501
Tax %-16%33%28%1,530%22%42%24%30%21%27%22%23%22%
Net Profit-13880114-211157915545167228371712391
EPS in Rs-3.562.603.930.003.672.624.701.524.886.6010.5319.8111.04

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales2,1322,3332,2841,6861,8122,1572,6303,4862,5934,4988,24212,37513,851
Expenses2,1282,3432,1961,5961,6791,9492,3902,9572,4793,9037,12810,40411,684
Operating Profit5-1088901342082415291145951,1141,9712,167
OPM %0%-0%4%5%7%10%9%15%4%13%14%16%16%
Other Income5891208868127301471991523419891,012
Interest29262248464451263261325409368258
Depreciation45547539414652247257311494671711
Profit before tax-10120090128147168165-2051115521,9212,210
Tax %262%1,357%35%39%34%41%44%36%-12%69%29%23%
Net Profit-27-1912955858795106-181353941,4771,702
EPS in Rs-0.81-0.563.891.662.552.622.923.46-4.112.9812.5141.8247.98
Dividend Payout %-87%-125%26%54%39%44%45%29%-15%57%18%8%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)29.63%778.95%-57.36%54.55%2.35%9.20%11.58%-270.75%119.34%1025.71%274.87%
Change in YoY Net Profit Growth (%)0.00%749.32%-836.31%111.91%-52.19%6.84%2.38%-282.33%390.09%906.38%-750.84%

Trent Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:18%
5 Years:36%
3 Years:68%
TTM:49%
Compounded Profit Growth
10 Years:59%
5 Years:57%
3 Years:101%
TTM:128%
Stock Price CAGR
10 Years:46%
5 Years:67%
3 Years:80%
1 Year:146%
Return on Equity
10 Years:8%
5 Years:9%
3 Years:15%
Last Year:27%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 6:40 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital33333333333333363636363636
Reserves1,1989581,3891,4311,5141,5621,6132,3522,2772,3282,5604,0324,644
Borrowings3433322674003923914943003004,7254,4641,7531,842
Other Liabilities6356145182922833494182,8193,1116371,0221,3411,752
Total Liabilities2,2091,9362,2072,1572,2222,3362,5595,5075,7247,7268,0827,1628,274
Fixed Assets8437206684775496136622,7383,0544,6874,5272,4502,804
CWIP10613892555108723108105102224219
Investments3173007401,0671,0801,0238831,5151,4871,2841,1101,4161,517
Other Assets9437787065585886919271,2301,0751,6512,3433,0723,735
Total Assets2,2091,9362,2072,1572,2222,3362,5595,5075,7247,7268,0827,1628,274

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +31-46-101091027721361285585951,349
Cash from Investing Activity +-276-48-306-98-44-4-37-8091856-103-508
Cash from Financing Activity +147-50310-13-51-7437452-283-108-491-629
Net Cash Flow-97-145-6-27-12152061211

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-338.00-342.00-179.00-310.00-258.00-183.00-253.00229.00-186.00591.00-3.000.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days433313223122
Inventory Days86909112812612213811810212810583
Days Payable938361767074685865565141
Cash Conversion Cycle-3933555851726240745545
Working Capital Days2322-14-253641373939503828
ROCE %-0%1%4%7%9%10%11%17%2%9%12%24%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters37.01%37.01%37.01%37.01%37.01%37.01%37.01%37.01%37.01%37.01%37.01%37.01%
FIIs30.13%28.94%28.32%26.82%25.92%24.76%24.43%25.01%26.17%25.91%26.81%27.87%
DIIs11.15%12.47%13.43%14.58%15.16%16.11%16.10%15.81%14.89%14.82%13.89%13.18%
Public21.71%21.58%21.24%21.59%21.90%22.12%22.45%22.17%21.92%22.26%22.29%21.95%
No. of Shareholders92,5161,06,8101,12,4601,24,2981,37,1231,32,7701,36,1681,30,4711,49,0101,75,2412,15,7152,46,571

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Axis Midcap Fund1,928,7883.511056.95600,0002024-11-20221.46%
Canara Robeco Emerging Equities1,754,2034.161024.28600,0002024-11-20192.37%
UTI Flexi Cap Fund1,125,3452.4616.67600,0002024-11-2087.56%
Nippon India Growth Fund850,0001.51496.32600,0002024-11-2041.67%
Axis Flexi Cap Fund805,3993.47441.35600,0002024-11-2034.23%
Motilal Oswal Flexi Cap Fund750,0003.82437.93600,0002024-11-2025%
Sundaram Mid Cap Fund654,1273.03358.45600,0002024-11-209.02%
Sundaram Mid Cap Fund - Institutional Plan654,1273.03358.45600,0002024-11-209.02%
UTI Nifty200 Momentum 30 Index Fund647,0915.09354.6600,0002024-11-207.85%
Nippon India Multi Cap Fund600,0000.94350.34600,0002024-11-200%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)41.8212.512.98-4.113.53
Diluted EPS (Rs.)41.8212.512.98-4.113.53
Cash EPS (Rs.)56.9622.619.574.1510.79
Book Value[Excl.RevalReserv]/Share (Rs.)115.4074.9167.7966.3269.43
Book Value[Incl.RevalReserv]/Share (Rs.)115.4074.9167.7966.3269.43
Revenue From Operations / Share (Rs.)348.10231.84126.5372.9498.06
PBDIT / Share (Rs.)62.2137.5421.0710.5119.37
PBIT / Share (Rs.)43.3323.6512.333.2712.41
PBT / Share (Rs.)50.5613.182.98-3.755.50
Net Profit / Share (Rs.)38.088.730.82-3.093.84
NP After MI And SOA / Share (Rs.)41.8212.512.98-4.113.45
PBDIT Margin (%)17.8616.1916.6514.4019.74
PBIT Margin (%)12.4410.209.744.4812.65
PBT Margin (%)14.525.682.35-5.145.60
Net Profit Margin (%)10.943.760.65-4.233.91
NP After MI And SOA Margin (%)12.015.392.35-5.633.52
Return on Networth / Equity (%)36.5517.134.47-6.315.14
Return on Capital Employeed (%)27.4012.036.192.338.79
Return On Assets (%)20.765.501.36-2.552.22
Long Term Debt / Equity (X)0.120.190.210.000.12
Total Debt / Equity (X)0.120.190.210.000.12
Asset Turnover Ratio (%)1.621.040.570.360.79
Current Ratio (X)2.022.172.731.873.50
Quick Ratio (X)0.990.921.401.302.25
Dividend Payout Ratio (NP) (%)5.268.7940.30-24.3242.41
Dividend Payout Ratio (CP) (%)3.624.1610.2331.9814.07
Earning Retention Ratio (%)94.7491.2159.70124.3257.59
Cash Earning Retention Ratio (%)96.3895.8489.7768.0285.93
Interest Coverage Ratio (X)6.933.612.461.502.80
Interest Coverage Ratio (Post Tax) (X)3.441.851.190.561.55
Enterprise Value (Cr.)140603.2549363.9445832.9726678.8517354.15
EV / Net Operating Revenue (X)11.365.9910.1910.294.98
EV / EBITDA (X)63.5836.9961.1971.4325.21
MarketCap / Net Operating Revenue (X)11.345.9310.0910.304.89
Retention Ratios (%)94.7391.2059.69124.3257.58
Price / BV (X)34.5118.8319.1911.557.13
Price / Net Operating Revenue (X)11.345.9310.0910.304.89
EarningsYield0.010.010.00-0.010.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Trent Ltd as of November 21, 2024 is: 6,070.81

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Trent Ltd is Overvalued by 6.02% compared to the current share price 6,460.00

Intrinsic Value of Trent Ltd as of November 21, 2024 is: 13,435.36

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Trent Ltd is Undervalued by 107.98% compared to the current share price 6,460.00

Last 5 Year EPS CAGR: 121.31%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 26.17, which is a positive sign.
  2. The company has higher reserves (2,142.92 cr) compared to borrowings (1,231.00 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (4.15 cr) and profit (103.85 cr) over the years.
  1. The stock has a low average ROCE of 8.83%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 45.92, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Trent Ltd:
    1. Net Profit Margin: 10.94%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 27.4% (Industry Average ROCE: 14.12%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 36.55% (Industry Average ROE: 16.07%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 3.44
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.99
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 169 (Industry average Stock P/E: 79.18)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.12
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Trent Ltd. is a Public Limited Listed company incorporated on 05/12/1952 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24240MH1952PLC008951 and registration number is 008951. Currently Company is involved in the business activities of Retail sale of readymade garments, hosiery goods, other articles of clothing and clothing accessories such as gloves, ties, braces etc.. Company’s Total Operating Revenue is Rs. 3880.73 Cr. and Equity Capital is Rs. 35.55 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Retail - Apparel/AccessoriesBombay House, Mumbai Maharashtra 400001investor.relations@trent-tata.com
http://www.trentlimited.com
Management
NamePosition Held
Mr. S N TataChairman Emeritus
Mr. N N TataChairman
Mr. P VenkatesaluExecutive Director & CEO
Mr. R S GillDirector
Mr. H RavichandarDirector
Mr. J HoltzhausenDirector
Mr. B BhatDirector
Mr. H BhatDirector
Mr. J MerchantDirector
Mr. S GivenDirector
Mr. Kiran Mazumdar ShawDirector

FAQ

What is the latest intrinsic value of Trent Ltd?

The latest intrinsic value of Trent Ltd as on 21 November 2024 is ₹6070.81, which is 6.02% lower than the current market price of ₹6,460.00.

What is the Market Cap of Trent Ltd?

The Market Cap of Trent Ltd is 2,29,913 Cr..

What is the current Stock Price of Trent Ltd as on 21 November 2024?

The current stock price of Trent Ltd as on 21 November 2024 is ₹6,460.

What is the High / Low of Trent Ltd stocks in FY 2024?

In FY 2024, the High / Low of Trent Ltd stocks is 8,346/2,630.

What is the Stock P/E of Trent Ltd?

The Stock P/E of Trent Ltd is 169.

What is the Book Value of Trent Ltd?

The Book Value of Trent Ltd is 132.

What is the Dividend Yield of Trent Ltd?

The Dividend Yield of Trent Ltd is 0.05 %.

What is the ROCE of Trent Ltd?

The ROCE of Trent Ltd is 23.8 %.

What is the ROE of Trent Ltd?

The ROE of Trent Ltd is 27.2 %.

What is the Face Value of Trent Ltd?

The Face Value of Trent Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Trent Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE