NSEI:TRENT

Stock Analysis Report

Executive Summary

Trent Limited, together with its subsidiaries, operates a chain of retail stores primarily under the Westside brand in India.


Snowflake Analysis

High growth potential with proven track record.


Similar Companies

Share Price & News

How has Trent's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TRENT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.8%

TRENT

-0.4%

IN Multiline Retail

-1.2%

IN Market


1 Year Return

123.5%

TRENT

22.5%

IN Multiline Retail

6.4%

IN Market

Return vs Industry: TRENT exceeded the Indian Multiline Retail industry which returned 22.5% over the past year.

Return vs Market: TRENT exceeded the Indian Market which returned 6.4% over the past year.


Shareholder returns

TRENTIndustryMarket
7 Day-4.8%-0.4%-1.2%
30 Day28.9%14.5%-3.6%
90 Day43.2%25.7%-0.5%
1 Year124.2%123.5%22.6%22.5%8.4%6.4%
3 Year202.9%199.9%98.7%97.9%20.9%14.3%
5 Year419.5%406.8%-12.8%-21.3%29.8%18.0%

Price Volatility Vs. Market

How volatile is Trent's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Trent undervalued compared to its fair value and its price relative to the market?

238.65x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TRENT (₹738) is trading above our estimate of fair value (₹67.19)

Significantly Below Fair Value: TRENT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TRENT is poor value based on its PE Ratio (238.6x) compared to the Multiline Retail industry average (17.2x).

PE vs Market: TRENT is poor value based on its PE Ratio (238.6x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: TRENT is poor value based on its PEG Ratio (4.8x)


Price to Book Ratio

PB vs Industry: TRENT is overvalued based on its PB Ratio (10.9x) compared to the IN Multiline Retail industry average (9.9x).


Next Steps

Future Growth

How is Trent forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

49.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRENT's forecast earnings growth (49.9% per year) is above the savings rate (6.5%).

Earnings vs Market: TRENT's earnings (49.9% per year) are forecast to grow faster than the Indian market (20.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TRENT's revenue (22.6% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: TRENT's revenue (22.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TRENT's Return on Equity is forecast to be low in 3 years time (13.8%).


Next Steps

Past Performance

How has Trent performed over the past 5 years?

1.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRENT has high quality earnings.

Growing Profit Margin: TRENT's current net profit margins (3.2%) are lower than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: TRENT's earnings have grown by 1.6% per year over the past 5 years.

Accelerating Growth: TRENT's earnings growth over the past year (11.8%) exceeds its 5-year average (1.6% per year).

Earnings vs Industry: TRENT earnings growth over the past year (11.8%) exceeded the Multiline Retail industry 0.7%.


Return on Equity

High ROE: TRENT's Return on Equity (4.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Trent's financial position?


Financial Position Analysis

Short Term Liabilities: TRENT's short term assets (₹17.6B) exceed its short term liabilities (₹6.7B).

Long Term Liabilities: TRENT's short term assets (₹17.6B) do not cover its long term liabilities (₹24.2B).


Debt to Equity History and Analysis

Debt Level: TRENT's debt to equity ratio (21.1%) is considered satisfactory.

Reducing Debt: TRENT's debt to equity ratio has reduced from 21.4% to 21.1% over the past 5 years.

Debt Coverage: TRENT's debt is well covered by operating cash flow (27.9%).

Interest Coverage: TRENT's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet

Inventory Level: TRENT has a high level of physical assets or inventory.

Debt Coverage by Assets: TRENT's debt is covered by short term assets (assets are 3.6x debt).


Next Steps

Dividend

What is Trent's current dividend yield, its reliability and sustainability?

0.18%

Current Dividend Yield


Dividend Yield vs Market

company0.2%marketbottom25%0.6%markettop25%2.6%industryaverage2.6%forecastin3Years0.3%

Current dividend yield vs market & industry

Notable Dividend: TRENT's dividend (0.18%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: TRENT's dividend (0.18%) is low compared to the top 25% of dividend payers in the Indian market (2.63%).


Stability and Growth of Payments

Stable Dividend: TRENT is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: TRENT is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: TRENT is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TRENT's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.9yrs

Average management tenure


CEO

Philip Auld 0

5.3yrs

Tenure

₹68,916,000

Compensation

Mr. Philip N. Auld has been the Managing Director of Trent Limited since November 4, 2014. Mr. Auld served as the Chief Executive Officer of Trent Ltd. from April 2011 to November 3, 2014 and was its Manag ...


CEO Compensation Analysis

Compensation vs Market: Philip's total compensation ($USD959.52K) is about average for companies of similar size in the Indian market ($USD754.76K).

Compensation vs Earnings: Philip's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Philip Auld
MD & Non-Independent Executive Director5.3yrs₹68.92mno data
P. Venkatesalu
Executive Director of Finance4.7yrs₹24.69mno data
Mehernosh Surti
Company Secretary & Compliance Officer10.9yrs₹7.03m0.0020% 5.5m
P. Anand
Senior Vice-President of Operations0yrsno datano data
S. Kamat
General Manager of Finance & Accounts0yrs₹4.17mno data
S. Jain
Head of Human Resources0yrs₹2.75mno data
Rastogi Sanjay
Head of Corporate Human Resources0yrs₹3.56mno data
Solkar Shailesh
Head of Merchandising & Supply Chain0yrs₹2.68mno data
Damani Madhulika
Head of Indian Wear4.9yrs₹2.63mno data
Venu Nair
Chief Commercial Officer2.8yrsno datano data

4.9yrs

Average Tenure

65yo

Average Age

Experienced Management: TRENT's management team is considered experienced (4.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Philip Auld
MD & Non-Independent Executive Director5.3yrs₹68.92mno data
P. Venkatesalu
Executive Director of Finance4.7yrs₹24.69mno data
Simon Susman
Independent Non-Executive Director8.8yrs₹1.01mno data
Bhaskar Bhat
Non Independent Non-Executive Director9.4yrs₹870.00kno data
Abhijit Sen
Non-Executive Independent Director4.8yrs₹3.82mno data
Zubin Dubash
Independent Non-Executive Director9.8yrs₹3.10mno data
Noel Tata
Chairman5.9yrs₹1.92m0.25% 677.6m
Harish Bhat
Non-Executive Non-Independent Director5.8yrs₹645.00kno data
Simone Tata
Chairman Emeritus0yrs₹828.00kno data
Bahram Vakil
Independent Non-Executive Director7.7yrs₹2.80mno data

6.8yrs

Average Tenure

63yo

Average Age

Experienced Board: TRENT's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.9%.


Top Shareholders

Company Information

Trent Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Trent Limited
  • Ticker: TRENT
  • Exchange: NSEI
  • Founded: 1952
  • Industry: Department Stores
  • Sector: Retail
  • Market Cap: ₹271.575b
  • Shares outstanding: 355.49m
  • Website: https://www.mywestside.com

Number of Employees


Location

  • Trent Limited
  • Trent House, G-Block
  • Plot No. C-60, Beside Citi Bank
  • Mumbai
  • Maharashtra
  • 400051
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500251BSE (Mumbai Stock Exchange)INR1ININRNo data
500251BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 1994
TRENTNSEI (National Stock Exchange of India)YesEquity SharesININRJul 1994
600251BSE (Mumbai Stock Exchange)INR1 (FOREIGN PREMIUM)ININRApr 2017

Biography

Trent Limited, together with its subsidiaries, operates a chain of retail stores primarily under the Westside brand in India. The company’s Westside departmental stores provide women’s wear, men’s wear, kids’ wear, footwear, lingerie, cosmetics, perfumes and handbags, household furniture, and accessories. It also operates a hypermarket and convenience store chain under the Star Market brand, which offer food and groceries, staple foods, beverages, health and beauty products, consumer electronics, home care products, apparel, home décor, vegetables, fruits, and dairy products. In addition, the company operates books and music retail chain under the Landmark name that provides toys, adult and young adult books, sports-related merchandise, tech accessories, and gaming and stationery products. Further, it operates fashion apparel stores for women, men, and children under the Zudio brand. As of March 31, 2019, the company operated 150 Westside stores; 5 Landmark stores; 32 Star Market and 12 Hypermarket stores; and 40 standalone Zudio stores and 16 Star locations. Trent Limited was incorporated in 1952 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 12:55
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.