Trent Q1 Review - Above Expected; Valuation Continues To Be Primary Concern: IDBI Capital
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IDBI Capital Report
Trent Ltd. reported better than expected result. Apparels being non-essentials has been most significantly impacted due to Covid-19 induced lockdowns.
During Q1 FY22; fashion business (Westside and Zudio) of Trent could operate only for 46% of the trading days.
Consequently, overall business is stayed at ~43% of pre-Covid-19.
Revenue from Westside online business grew at healthy up 200% and now contributes ~5% to Westside revenue.
Store addition rate remains healthy and aids confidence to our forecast.
During the quarter; the company fitted out 25 (13 Westside and 12 Zudio) stores which are likely to open once Covid-19 restrictions are eased.
We are estimating 30 and 70 store addition in Westisde and Zudio formats in FY22E.
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