Latest news with #Trent
Time of India
3 hours ago
- Business
- Time of India
HSBC starts coverage on Trent with buy, sees 19% upside on Zudio growth
HSBC Global Research has initiated coverage on Trent Ltd with a 'buy' rating and a target price of Rs 6,700, implying a nearly 19% upside from Friday's close of Rs 5,951.85. The brokerage cited strong growth prospects led by Zudio's rapid scale-up, a robust execution track record, and compelling optionalities across the company's retail portfolio. Shares of Trent closed 4% on Friday. HSBC said Trent, part of the Tata Group, has emerged as one of the most dynamic plays in Indian retail, led by the 'strong growth on the back of Zudio scale-up.' While Westside continues to cater to mid-to-premium segments with a strong focus on women's wear, the brokerage noted that 'Zudio offers fast fashion at affordable prices' and is now 'the largest contributor to Trent's revenues.' Valuing Trent on a sum-of-the-parts basis, HSBC has assigned the standalone business, including Zudio, Westside, and other smaller formats like Utsa, Samoh and Misbu, an industry-leading price-to-earnings multiple of 75x on June FY27 estimated earnings. 'While this looks expensive, on a PEG basis, it comes to c.2.4x (vs 3x for Vishal Mega Mart and 4.7x for Page Industries) in spite of Trent's higher growth, profitability and RoCE profile,' the brokerage said, adding that this is the highest multiple among discretionary stocks under its coverage, excluding Nykaa. The valuation also incorporates Trent's 50:50 joint venture with Tesco for its hypermarket chain Star, which has been valued at 4x EV/sales, a 20% discount to DMart's historical five-year average. Zara India, run through a joint venture with Inditex, is valued based on the August 2024 share buyback by the Spanish parent. Other businesses have been valued at 2x EV/sales. HSBC said the blended valuation reflects both the company's near-term growth potential — it expects about 25% revenue CAGR over FY25–28, and the longer-term opportunity to gain scale in underpenetrated segments. HSBC flagged emerging optionalities such as the Zudio Beauty vertical as further levers for growth, stating, 'we like the optionalities at play in Trent,' and noted that Trent's improving profitability since FY23 makes historical PE ratios less relevant for current valuations. Live Events However, the brokerage also highlighted risks, including rising competition in the value fast fashion space that could disrupt network rollout and pressure margins. Weak consumer spending could weigh on growth at Westside and Zudio, while newer formats may fail to scale. 'Inability to drive or identify latest fashion trends' was also flagged as a downside risk. Trent shares have gained 13.8% in the past month but are still down 16% over six months. Over the last year, the stock is up 11%. Technically, it remains below most key moving averages, including the 5-day, 10-day, 20-day, 50-day, and 200-day lines, with an RSI at 56 suggesting neutral momentum. Also read | HDB Financial IPO shocker: Price band 42% below unlisted market value
Economic Times
3 hours ago
- Business
- Economic Times
HSBC starts coverage on Trent with buy, sees 19% upside on Zudio growth
HSBC Global Research initiated coverage on Trent Ltd with a 'buy' rating and ₹6,700 target, citing Zudio's strong growth, robust execution, and a premium retail portfolio. The brokerage forecasts a 25% revenue CAGR over FY25–28 and values Trent on a SOTP basis. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads HSBC Global Research has initiated coverage on Trent Ltd with a 'buy' rating and a target price of Rs 6,700, implying a nearly 19% upside from Friday's close of Rs 5,951.85. The brokerage cited strong growth prospects led by Zudio's rapid scale-up, a robust execution track record, and compelling optionalities across the company's retail portfolio. Shares of Trent closed 4% on said Trent, part of the Tata Group, has emerged as one of the most dynamic plays in Indian retail, led by the 'strong growth on the back of Zudio scale-up.' While Westside continues to cater to mid-to-premium segments with a strong focus on women's wear, the brokerage noted that 'Zudio offers fast fashion at affordable prices' and is now 'the largest contributor to Trent's revenues.'Valuing Trent on a sum-of-the-parts basis, HSBC has assigned the standalone business, including Zudio, Westside, and other smaller formats like Utsa, Samoh and Misbu, an industry-leading price-to-earnings multiple of 75x on June FY27 estimated earnings. 'While this looks expensive, on a PEG basis, it comes to c.2.4x (vs 3x for Vishal Mega Mart and 4.7x for Page Industries) in spite of Trent's higher growth, profitability and RoCE profile,' the brokerage said, adding that this is the highest multiple among discretionary stocks under its coverage, excluding valuation also incorporates Trent's 50:50 joint venture with Tesco for its hypermarket chain Star, which has been valued at 4x EV/sales, a 20% discount to DMart's historical five-year average. Zara India, run through a joint venture with Inditex, is valued based on the August 2024 share buyback by the Spanish parent. Other businesses have been valued at 2x EV/sales. HSBC said the blended valuation reflects both the company's near-term growth potential — it expects about 25% revenue CAGR over FY25–28, and the longer-term opportunity to gain scale in underpenetrated flagged emerging optionalities such as the Zudio Beauty vertical as further levers for growth, stating, 'we like the optionalities at play in Trent,' and noted that Trent's improving profitability since FY23 makes historical PE ratios less relevant for current the brokerage also highlighted risks, including rising competition in the value fast fashion space that could disrupt network rollout and pressure margins. Weak consumer spending could weigh on growth at Westside and Zudio, while newer formats may fail to scale. 'Inability to drive or identify latest fashion trends' was also flagged as a downside shares have gained 13.8% in the past month but are still down 16% over six months. Over the last year, the stock is up 11%. Technically, it remains below most key moving averages, including the 5-day, 10-day, 20-day, 50-day, and 200-day lines, with an RSI at 56 suggesting neutral read | HDB Financial IPO shocker: Price band 42% below unlisted market value (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Business Upturn
5 hours ago
- Business
- Business Upturn
Nifty 50 top gainers today, June 20: Trent, Jio Financial Services, Mahindra & Mahindra, Bharti Airtel and more
Indian stock markets ended sharply higher on June 20, with benchmark indices hitting high levels. The Nifty 50 closed above the 25,000 mark, settling at 25,112.40, up 319.15 points (1.29%). Meanwhile, the Sensex jumped 1,046.30 points (1.29%) to finish the session at 82,408.17. Among the Nifty 50 stocks, several companies recorded significant gains, led by Trent, Jio Financial Services and Mahindra & Mahindra. Below is a detailed look at the top gainers of the Nifty 50 (as per Trendline) for the day. Nifty 50 Top Gainers on June 20 Trent Ltd : Topped the charts with a 4.0% gain, closing at ₹5,950 . Jio Financial Services : Rose 3.3% , ending the day at ₹293.5 . Mahindra & Mahindra : Continued its strong run, gaining 3.1% to settle at ₹3,189.9 . Bharti Airtel : Moved up 3.0% and closed at ₹1,934 . Nestle India : Gained 2.8% , finishing at ₹2,383.1 . Power Grid Corporation : Added 2.2% to close at ₹292.7 . Reliance Industries : Also up 2.2% , ending the session at ₹1,464.1 . Bharat Electronics Ltd (BEL) : Rose 2.1% to ₹407.1 . HDFC Life Insurance : Increased 2.1% , closing at ₹778 . Shriram Finance: Ended 1.8% higher at ₹664. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Ahmedabad Plane Crash Bharti AirtelJio Financial ServicesMahindra & MahindraStock MarketTrent Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
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Business Standard
9 hours ago
- Business
- Business Standard
Trent, BEL to see $700 million inflows on Sensex rejig; VMM tops FTSE flows
Trent and BEL's entry into the BSE Sensex may drive $708 million in passive inflows, while Nestle and IndusInd Bank face outflows following their exclusion, per Nuvama estimates Sai Aravindh Mumbai The inclusion of Tata Group-owned Trent Ltd and Bharat Electronics Ltd (BEL) in the benchmark 30-stock BSE Sensex index will likely result in an inflow of $708 million. Trent is expected to see an inflow of $330 million, while the aerospace and defence electronics company BEL could see $378 million in inflows, according to Nuvama Alternative estimates. However, Nestle and IndusInd Bank are likely to see outflows of $230 million and $145 million, given that they were excluded from the Sensex gauge in the latest index rebalancing. Friday promises to be an action-packed day with two major semi-annual index rebalances lined up, Sensex and FTSE, Nuvama said in a note. "Historically, Sensex inclusions tend to see intraday upmoves, supported by stronger volumes, and a similar trend could play out this time as well." Catch Stock Market LIVE Updates Today During the day, the Sensex index rose as much as 1.01 per cent, or 824.5 points, to 82,186, while the Nifty50 index rose 1 per cent, or 247 points, to 25,040. Further, UltraTech Cement is expected to see an inflow of $4 million after its weights were increased, while HDFC Bank, Bharti Airtel, Reliance Industries, ICICI Bank, Infosys, Sun Pharmaceuticals, Larsen & Toubro, ITC, TCS, Axis Bank, Kotak Mahindra Bank and State Bank of India are likely to see outflows after their weights were reduced. These changes will take effect from the start of trading on June 23, 2025. 'Index rejigs are a key event for the market because they help the market participants gauge the direction in which the funds are moving,' the BSE noted earlier. These periodic updates help ensure the index continues to represent India's evolving market trends. FTSE rejig The changes in the London-based Financial Times Stock Exchange index are likely to result in an inflow of $150 million into the domestic market, as per Nuvama's 'best-effort' estimates. The inflows are largely driven by the inclusion of Vishal Mega Mart, which is expected to see about $115 million, as per the brokerage. In addition to that, Hyundai Motor, Waaree Energies, Swiggy, NTPC Green Energy, Onesource Specialty Pharma, Afcons Infrastructure, Sai Life Science, and Inventurus Knowledge Solutions are expected to see inflows given their additions to the FTSE key index. Siemens Energy to exit from MSCI Global Standard Index Nuvama also noted that the shares of Siemens Energy will be deleted from the MSCI Global Standard Index after it was demerged from Siemens India. The estimated passive outflow is approximately $210 million, translating to around 7 million shares, the brokerage said. Siemens demerged on April 7, 2025 and Siemens ex-Energy price opened at ₹2,450 and implied ₹2,478 share value for the Siemens Energy India entity.
France 24
10 hours ago
- Politics
- France 24
Iran strike hospital could be a 'game-changer'
FRANCE 24's Senior Reporter Catherine Norris Trent, reporting from Tel Aviv, Israel, said the diplomatic impact of an Iranian missile strike against Soroka hospital in the Beersheeba area of Israel could be "quite profound". In the aftermath of the attack, a succession of Israeli figures – the president, the prime minister, the foreign minister, the defence minister – all expressed their outrage, saying that this could be a "game-changer", and that they will "hit Iran back hard", added Trent. Video by: Catherine NORRIS TRENT
