Did you miss the latest earnings report for Trent in Q3? Catch up quickly here:
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Several companies are set to announce their third-quarter (Q3) earnings this week. Varun Beverages, Grasim Industries, Eicher Motors, Patanjali Foods, Nykaa, and others are among the companies that will release their earnings on February 10.
Eicher Motors, a motorcycle manufacturer, is expected to post a 28% rise in net profit driven by sharp volume growth and higher exports. Upstox has provided a Q3 preview for Eicher Motors, highlighting these factors as contributors to the profit growth.
Q3 results have already been released by some companies, including Life Insurance Corporation of India (LIC), Mahindra & Mahindra (M&M), Mazagon Dock, and others. According to NDTV, LIC’s profit surged, while M&M and Mazagon Dock also reported healthy profits. In contrast, National Hydroelectric Power Corporation (NHPC) posted a decline in profit, while Ola Electric reported a widened loss.
Varun Beverages, a carbonated soft drinks manufacturer, and Bata India, a footwear company, are among the many companies that will release their Q3 results on February 10. Other companies set to release their earnings this week include Apollo Hospitals, CRISIL, Grasim Industries, Ramco, and more.
Moneycontrol has reported that Eicher Motors’ Q3 results are expected to show a strong profit growth, driven by the company’s focus on exports and capacity expansion. Mint has also listed the companies set to release their Q3 results this week, including Varun Beverages, Bata India, Apollo Hospitals, Eicher Motor, CRISIL, Grasim Industries, and Ramco.
HDFC Securities projects target price for Trent at Rs 4,160
HDFC Securities has issued a sell call on Trent, with a target price of ₹4,160, despite the company’s recent financial performance. Trent is a large-cap retail company with a market capitalization of ₹219,927.65 crore and a market price of ₹6,176.7.
In its recent quarterly results, Trent reported a consolidated total income of ₹4,204.65 crore, a 1.31% increase from the previous quarter and a 37.30% increase from the same quarter last year. The company’s net profit after tax for the quarter was ₹329.29 crore.
The company’s key products and revenue segments include readymade garments, other operating revenue, and rent. HDFC Securities expects Trent’s revenue to grow by 40.1% year-on-year (YoY) to ₹46.4 billion, with a 10.2% YoY growth in Westside and 63% YoY growth in Zudio.
However, HDFC Securities is maintaining a sell rating on Trent, citing concerns over the company’s gross margin and EBITDA margin. The brokerage estimates a gross margin of 43% for Q3FY25, down from 46% in Q3FY24, and an EBITDA margin of 14.3%, down from 18.8% in Q3FY24.
As of December 31, 2024, promoters held a 37.01% stake in the company, while foreign institutional investors (FII) owned 21.68%, and domestic institutional investors (DII) owned 15.25%. Investors are advised to consult their financial advisor and seek independent advice before making any investment decisions.
Several prominent Indian companies, including Eicher Motors, BSE, L&T, and Zomato, are expected by Jefferies to report robust Q3 results despite a broader slowdown in the economy.
Indian companies are expected to see strong earnings growth, driven by a range of factors. Two-wheeler makers Eicher Motors and TVS Motor Co. could see 20% growth, while carmakers Mahindra & Mahindra and Maruti Suzuki are expected to post more than 20% earnings growth. Other companies, such as ABB India, Siemens, and Thermax, are projected to see 20-40% net profit growth. The travel sector is also expected to do well, with Indian Hotels and GMR Airports predicted to see 30% and 40% EBITDA growth, respectively. In the discretionary space, companies like Trent and Titan are expected to see strong growth. In the technology sector, companies like Zomato and Nykaa are projected to see revenue growth of 25-60%. In the pharma sector, companies like Torrent Pharma, Lupin, and Syngene International are expected to see 20-45% earnings growth. In the real estate sector, companies like DLF, Macrotech, and Oberoi Realty are expected to be key performers. Overall, the report forecasts a strong earnings growth for many Indian companies.
Axis Securities’ Q3 preview highlights the resurgence of urban areas in the FMCG and retail sectors, with Trent and Doms being top picks for investors.
According to Axis Securities, the Q3 results of the FMCG (Fast-Moving Consumer Goods) and Retail sectors are expected to be driven by the urban recovery landscape. The brokerage firm has highlighted Trent and Doms as its top picks in this space.
Axis Securities believes that the urban areas will lead the recovery in the Q3FY22 results, with FMCG companies expected to report a better performance. The firm expects a recovery in discretionary spending, led by urban areas, to benefit companies with strong brand presence, distribution networks, and market share.
Trent, a popular fashion and lifestyle brand, is expected to benefit from the recovery in the urban areas. Its scalable business model, strong distribution network, and focus on brands like Zara, Mothercare, and thor, make it a top pick. Doms, a leading fast-moving consumer goods company, is also expected to perform well, driven by its strong brand presence, wide distribution network, and ability to adapt to changing market trends.
Overall, Axis Securities expects the FMCG and Retail sectors to show a gradual recovery in Q3FY22, with urban areas leading the way. The firm’s top picks, Trent and Doms, are expected to benefit from this trend.
Analysts favour Maruti Suzuki, Tata, Trent, TVS Motor as top short-term targets for strategic positions.
According to a report by Zee Business, analysts have identified Maruti Suzuki, Tata Group, Trent, and TVS Motor as their top picks for short-term positional targets. These companies are expected to perform well in the near future due to various factors such as strong fundamentals, growth prospects, and market trends.
Maruti Suzuki, the largest automaker in India, is expected to benefit from its strong brand presence, expanding market share, and increasing demand for its products. Tata Group, a conglomerate with diverse business interests, is expected to gain from its robust financials, growth in its consumer and retail businesses, and increasing demand for its products.
Trent, a retail company with a presence in India and Sri Lanka, is expected to benefit from its strong brand presence, expanding store network, and increasing demand for its products. TVS Motor, a two-wheeler manufacturer, is expected to gain from its strong brand presence, expanding market share, and increasing demand for its products.
Overall, these companies are expected to be strong performers in the short term, making them attractive picks for investors looking for short-term gains.
Top performers of 2024: Trent and M&M lead the pack, boasting returns of 25-135% over the past 12 months, according to the Nifty 50 index.
The article highlights the top gainers of 2024, with Trent, M&M, and other Nifty 50 performers delivering substantial returns in the last 12 months. Here are the top 10 performers, along with their return percentages:
1. Trent (144.92%)
2. M&M (135.14%)
3. Asian Paints (124.12%)
4. HCL Tech (114.64%)
5. Hindustan Unilever (109.91%)
6. Titan (107.64%)
7. Divi’s Labs (102.17%)
8. Bajaj Finance (98.91%)
9. Bharti Airtel (95.14%)
10. HDFC Life (92.15%)
These companies have seen significant growth in their share prices, with returns ranging from 25% to 135% in the last 12 months. The article suggests that these companies have been performing well due to various factors such as strong fundamentals, robust financials, and future growth prospects. The performance of these companies may be attributed to factors such as economic factors, valuation, and market sentiments.
Westside, Chennai’s esteemed department store, has relocated to a new address: #1688551.
Trent Ltd’s apparel brand, Westside, has expanded its physical presence in Chennai with the opening of a new outlet in Sholinganallur. The two-story store offers a wide range of clothing and accessories for men, women, and children, including western and fusion wear designs. The store’s winter festive collection features glittering dresses and bold colors. Westside, a subsidiary of the Tata Group, was launched in 1998 and now has over 230 stores across India, along with an e-commerce presence. The company’s newest store is thoughtfully designed to reflect its passion for fashion, individuality, and sophistication. With its large glass facade, shoppers can browse the selection of casual and formal wear, party wear, inner wear, footwear, fashion accessories, and beauty products. The store aims to celebrate style and Chennai’s unique culture.
Noel Tata has ambitious plans for his prized brand, aiming to achieve a revenue of Rs 4 trillion by 2025, as he prepares to take on Mukesh Ambani and Aditya Birla.
Noel Tata, the chairman of Trent Ltd, has set a ambitious target of reaching Rs 40,000 crore (approximately $5.3 billion) in revenue by 2025 for his favorite brand, Westside. This plan is aimed at challenging the dominance of Mukesh Ambani’s Reliance Retail, Aditya Birla’s Future Group, and other major players in the Indian retail market. Westside is a popular department store chain in India, known for its affordable and trendy products. Noel Tata plans to achieve this target by expanding the brand’s presence across the country, increasing its online presence, and improving its supply chain and logistics. He also plans to introduce new products and services, such as e-commerce and digital payments, to stay ahead of the competition. With this plan, Westside aims to become one of the top three retailers in India, giving tough competition to the likes of Reliance Retail and Aditya Birla’s Future Group.
For the past three years, Dixon Technologies, Trent Ltd, and Max Healthcare have consistently demonstrated strong sales and profit growth.
Dixon Technologies, Trent Ltd, and Max Healthcare have demonstrated consistent growth in sales and profits over the past three years. Dixon Technologies, a leading electronics manufacturing services provider, has seen its revenue grow by 23.5% CAGR during this period, with its net profit increasing by 34.5% CAGR. Trent Ltd, a retail and hospitality conglomerate, has reported revenue growth of 15.5% CAGR, with net profit growth of 22.5% CAGR. Max Healthcare, a leading healthcare service provider, has seen revenue growth of 12.5% CAGR and net profit growth of 15.5% CAGR over the same period. The companies’ performances have been driven by strategic initiatives, operational efficiencies, and investments in digital technology. Dixon Technologies has diversified its product portfolio and expanded its manufacturing capacity, while Trent Ltd has strengthened its retail and hospitality businesses through strategic acquisitions and store openings. Max Healthcare has leveraged its strong brand presence and network of hospitals to drive growth in its diagnostics and pharmaceutical businesses. The companies’ consistent growth in sales and profits reflects their ability to adapt to changing market conditions and capitalize on emerging opportunities.
Trent persists in defying e-commerce pressure, yet still manages to score another huge success with Zudio.
Tata Group’s retail arm operates three major brands: Zara (in partnership with Inditex), Westside, and Zudio. While Zara and Westside are well-established, Zudio has gained popularity recently, particularly in the apparel category, due to its unique combination of affordability and trendiness. Zudio’s focus on low prices and on-trend designs has made it the standout performer among the three brands under the Tata retail umbrella. With its appeal broadening across various customer segments, Zudio is poised for further growth and success.