Kotak double downgrades Trent to 'sell', says 'may be time to book profits'

V-Mart Retail

17/01/2025 07:15

** Kotak double downgrades apparel retailer Trent  TREN.NS 
to "sell" from "add"
    ** After stock more than doubled in value in 2023 and 2024,
TREN down ~13% so far in Jan
    ** Says future growth priced in and "may be time to book
profits"
    ** Kotak's analysis of top 10 cities by store count for co's
Zudio chain reveals stores are in similar locations and could
cannibalize each other
    ** Adds, while co may still close year with ~180 store
additions, incremental rev per store growth may be slow
    ** Trims FY2025-27E rev by 1%-2% and EPS by 9%-14%
    ** Lowers stock's fair value to 5,850 rupees from 6,800
rupees, 5.8% below last close
    ** Trent up 0.7% at 6,255 rupees on Friday
    ** Stock rated "buy" on avg, peer Aditya Birla Fashion and
Retail  ADIA.NS  "sell", V-Mart Retail  VMAR.NS  "buy" - LSEG
data

 (Reporting by Ananta Agarwal in Bengaluru)
 ((Ananta.Agarwal@thomsonreuters.com))