Trent Ltd, a Tata group company established in 1998, operates the brand Zudio, which serves as a mass-market destination offering value-based fashion products. Zudio stores cater to a diverse range of customer shopping needs through various departments, including apparel for men, women, and children, footwear segment.
The first Zudio store, a private label covering 8,000 sq. ft, was launched in September 2016 at Commercial Street in Bangalore. The brand’s core focus lies in offering a collection of exclusive branded products, thoughtfully curated in-house, and aligned with the latest fashion trends, all while maintaining affordable pricing.
The brand continuously updates its offerings, ensuring that customers discover new and up-to-date merchandise with each visit. Their products are also available online at TataCliq.
As per the company’s latest annual report, the brand is selling 40 T-shirts, 10 Denims, and 7 deodorants every minute.
In FY23, the brand expanded its portfolio by incorporating 125 new stores with an average store size of approximately 8,000 sq. ft. It also entered 28 new cities and added more presence in 38 cities in the same period. The investment required for setting up a new store is typically under Rs 3 Crore, covering capital expenditure, deposits, and inventory costs.
As of March 2023, it had established a network of 352 stores spread across 119 cities, which also includes stores co-located with Star outlets.
Trent Limited, an India-based company, specializes in the retailing and trading of various merchandise. Its business operations encompass apparel, footwear, accessories, toys, and games, among other products. The company operates under several retail formats, including Westside, Landmark, Zudio, Utsa, Star Market, and Booker Wholesale.
Financial Performance
If we check the company’s financials, annual revenue experienced a substantial increase of 83%, rising from Rs 4,498 Crore to Rs 8,242 Crore. The operating profit of the company stands at Rs 1,114 Crore, accompanied by an operating profit margin of 14%. Furthermore, the net profit of the company amounts to Rs 384 Crore against Rs 35 Crore in FY22. The company's return on capital employed (ROCE) and return on equity (ROE) are reported as 11.6% and 11.9%, respectively.
Upon examining their balance sheet for debt, it is evident that the debt amount reached Rs 4,464 Crore, resulting in a debt-to-equity ratio of 1.72 times. This ratio is on the higher side, which is less favourable.
Share Performance
Today, the shares of Trent Limited commenced trading at Rs 1715, representing a flat opening from the previous day's closing price of Rs 1708.60 on the BSE. The stock's 52-week highs and lows are Rs 1791.60 and Rs 1155.10 respectively. Currently, its market capitalization stands at Rs 60,697.71 Crore. At the time of writing the article company's shares are trading at Rs 1707 each on the BSE.
Over the past three months, the stock has delivered an impressive return of 24%, while in the last three years, it has achieved a remarkable multibagger return of around 196%.
In terms of ownership, the promoters hold 37.01% of the company's shares, while foreign institutional investors (FIIs) and domestic institutional investors (DIIs) hold 25.01% and 15.81%, respectively. The remaining portion accounts for 22.17% held by public investors.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.