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Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Trent Ltd

Basic Stock Data

Last Updated: May 30, 2024, 6:15 am

Market Cap 1,63,673 Cr.
Current Price 4,601
High / Low4,799/1,525
Stock P/E181
Book Value 114
Dividend Yield0.07 %
ROCE23.8 %
ROE27.2 %
Face Value 1.00
PEG Ratio2.80

Competitors of Trent Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Vaibhav Global Ltd 5,842 Cr. 353543/29944.2 75.91.74 %14.0 %10.8 % 2.00
Kewal Kiran Clothing Ltd 4,196 Cr. 681827/47828.2 1060.73 %26.2 %21.8 % 10.0
V2 Retail Ltd 1,830 Cr. 529546/80.8112 71.60.00 %3.77 %5.10 % 10.0
7NR Retail Ltd 15.4 Cr. 5.4910.7/4.40 10.20.00 %3.12 %3.79 % 10.0
Aditya Birla Fashion & Retail Ltd 24,112 Cr. 237266/184 31.00.00 %5.03 %2.20 % 10.0
Industry Average7,199.08 Cr361.1036.8858.940.49%10.42%8.74%8.40

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales9064921,1781,4991,3291,8031,9532,3032,1832,6282,9823,4673,298
Expenses8015579681,2261,2041,5121,6971,9801,9802,2612,5262,8382,828
Operating Profit105-65210273125292256323203367457629470
OPM %12%-13%18%18%9%16%13%14%9%14%15%18%14%
Other Income67415742447884918979105110695
Interest64717577819591919292959933
Depreciation6869738089127112118137141152165213
Profit before tax40-164119157-114713720464212314475919
Tax %56%16%33%28%-1,530%22%42%24%30%21%27%22%23%
Net Profit17-13880114-211157915545167228371712
EPS in Rs0.82-3.562.603.930.003.672.624.701.524.886.6010.5319.81

Last Updated: May 11, 2024, 2:28 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 27, 2024, 6:14 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales2,1322,3332,2841,6861,8122,1572,6303,4862,5934,4988,24212,375
Expenses2,1282,3432,1961,5961,6791,9492,3902,9572,4793,9037,12810,404
Operating Profit5-1088901342082415291145951,1141,971
OPM %0%-0%4%5%7%10%9%15%4%13%14%16%
Other Income589120886812730147199152341989
Interest29262248464451263261325409368
Depreciation45547539414652247257311494671
Profit before tax-10120090128147168165-2051115521,921
Tax %-262%1,357%35%39%34%41%44%36%12%69%29%23%
Net Profit-27-1912955858795106-181353941,477
EPS in Rs-0.81-0.563.891.662.552.622.923.46-4.112.9812.5141.82
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%

Growth

Compounded Sales Growth
10 Years:18%
5 Years:36%
3 Years:68%
TTM:50%
Compounded Profit Growth
10 Years:59%
5 Years:57%
3 Years:101%
TTM:206%
Stock Price CAGR
10 Years:46%
5 Years:66%
3 Years:79%
1 Year:208%
Return on Equity
10 Years:8%
5 Years:9%
3 Years:15%
Last Year:27%

Last Updated: May 25, 2024, 8:22 am

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital27333333333333333636363636
Reserves1,1251,1989581,3891,4311,5141,5621,6132,3522,2772,3282,5602,878
Preference Capital1170000000000
Borrowings3013363322674003923914943003004,7254,4644,839
Other Liabilities5616426145182922833494182,8193,1116371,0221,186
Total Liabilities2,0142,2091,9362,2072,1572,2222,3362,5595,5075,7247,7268,0828,939
Fixed Assets7468437206684775496136622,7383,0544,6874,5274,986
CWIP7310613892555108723108105102166
Investments2253173007401,0671,0801,0238831,5151,4871,2841,1101,225
Other Assets9709437787065585886919271,2301,0751,6512,3432,562
Total Assets2,0142,2091,9362,2072,1572,2222,3362,5595,5075,7247,7268,0828,939

Reserves and Borrowings Chart

Trent Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -9031-46-10109102772136128558595
Cash from Investing Activity -137-276-48-306-98-44-4-37-8091856-103
Cash from Financing Activity 207147-50310-13-51-7437452-283-108-491
Net Cash Flow-20-97-145-6-27-12152061

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-2.00-10.0088.0090.00134.00208.00241.00529.00114.00595.001.001.00

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 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days443331322312
Inventory Days104869091128126122138118102128105
Days Payable869383617670746858655651
Cash Conversion Cycle22-39335558517262407455
Working Capital Days322322-14-2536413739395038
ROCE %-3%-0%1%4%7%9%10%11%17%2%9%12%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 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%
FIIs30.28%30.13%28.94%28.32%26.82%25.92%24.76%24.43%25.01%26.17%25.91%26.81%
DIIs10.68%11.15%12.47%13.43%14.58%15.16%16.11%16.10%15.81%14.89%14.82%13.89%
Public22.03%21.71%21.58%21.24%21.59%21.90%22.12%22.45%22.17%21.92%22.26%22.29%
No. of Shareholders88,52892,5161,06,8101,12,4601,24,2981,37,1231,32,7701,36,1681,30,4711,49,0101,75,2412,15,715

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Axis Midcap Fund3,634,5554.571121.97
Canara Robeco Emerging Equities1,796,4402.79554.55
Nippon India Growth Fund1,160,0001.47358.09
UTI Flexi Cap Fund1,102,9251.35340.47
Sundaram Mid Cap Fund877,7842.68270.97
Sundaram Mid Cap Fund - Institutional Plan877,7842.68270.97
Franklin India Prima Fund808,9372.48249.71
Axis Flexi Cap Fund805,3992.19248.62
Nippon India Multi Cap Fund800,0000.96246.96
Motilal Oswal Flexi Cap Fund750,0002.54231.52

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)12.512.98-4.113.532.92
Diluted EPS (Rs.)12.512.98-4.113.532.92
Cash EPS (Rs.)22.619.574.1510.794.76
Book Value[Excl.RevalReserv]/Share (Rs.)74.9167.7966.3269.4349.46
Book Value[Incl.RevalReserv]/Share (Rs.)74.9167.7966.3269.4349.46
Revenue From Operations / Share (Rs.)231.84126.5372.9498.0679.15
PBDIT / Share (Rs.)37.5421.0710.5119.378.08
PBIT / Share (Rs.)23.6512.333.2712.416.53
PBT / Share (Rs.)13.182.98-3.755.505.42
Net Profit / Share (Rs.)8.730.82-3.093.843.20
NP After MI And SOA / Share (Rs.)12.512.98-4.113.452.92
PBDIT Margin (%)16.1916.6514.4019.7410.20
PBIT Margin (%)10.209.744.4812.658.24
PBT Margin (%)5.682.35-5.145.606.84
Net Profit Margin (%)3.760.65-4.233.914.04
NP After MI And SOA Margin (%)5.392.35-5.633.523.68
Return on Networth / Equity (%)17.134.47-6.315.145.88
Return on Capital Employeed (%)12.036.192.338.7910.92
Return On Assets (%)5.501.36-2.552.223.78
Long Term Debt / Equity (X)0.190.210.000.120.18
Total Debt / Equity (X)0.190.210.000.120.23
Asset Turnover Ratio (%)0.960.570.360.791.03
Current Ratio (X)2.172.731.873.501.53
Quick Ratio (X)0.921.401.302.250.66
Dividend Payout Ratio (NP) (%)8.7940.30-24.3242.4147.51
Dividend Payout Ratio (CP) (%)4.1610.2331.9814.0730.99
Earning Retention Ratio (%)91.2159.70124.3257.5952.49
Cash Earning Retention Ratio (%)95.8489.7768.0285.9369.01
Interest Coverage Ratio (X)3.612.461.502.807.31
Interest Coverage Ratio (Post Tax) (X)1.851.190.561.553.90
Enterprise Value (Cr.)49363.9445832.9726678.8517354.1512294.87
EV / Net Operating Revenue (X)5.9910.1910.294.984.67
EV / EBITDA (X)36.9961.1971.4325.2145.78
MarketCap / Net Operating Revenue (X)5.9310.0910.304.894.55
Retention Ratios (%)91.2059.69124.3257.5852.48
Price / BV (X)18.8319.1911.557.137.26
Price / Net Operating Revenue (X)5.9310.0910.304.894.55
EarningsYield0.010.00-0.010.010.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: ₹5,616.38

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.

Undervalued: 22.07% compared to the current price ₹4601

Intrinsic Value: ₹9,245.23

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 100.94% compared to the current price ₹4601

Last 5 Year EPS CAGR: 64.61%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 26.50, which is a positive sign.
  2. The company has higher reserves (1,934.50 cr) compared to borrowings (0.58 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (3.42 cr) and profit (112.33 cr) over the years.
  1. The stock has a low average ROCE of 6.58%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 44.00, 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: 3.76%
      • 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: 12.03% (Industry Average ROCE: 10.42%)
      • 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%: 17.13% (Industry Average ROE: 8.74%)
      • 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): 1.85
      • 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: 0.92
      • 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: 181 (Industry average Stock P/E: 36.88)
      • 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: 0.19
      • 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

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 fair value of Trent Ltd?

The latest fair value of Trent Ltd is ₹5616.38.

What is the Market Cap of Trent Ltd?

The Market Cap of Trent Ltd is 1,63,673 Cr..

What is the current Stock Price of Trent Ltd as on 30 May 2024?

The current stock price of Trent Ltd as on 30 May 2024 is ₹4,601.

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

In FY 2024, the High / Low of Trent Ltd stocks is 4,799/1,525.

What is the Stock P/E of Trent Ltd?

The Stock P/E of Trent Ltd is 181.

What is the Book Value of Trent Ltd?

The Book Value of Trent Ltd is 114.

What is the Dividend Yield of Trent Ltd?

The Dividend Yield of Trent Ltd is 0.07 %.

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