Latest news with #Westside
Economic Times
a day ago
- Business
- Economic Times
Safe Enterprises Retail Fixtures IPO to list Friday. GMP points to mild listing premium
Safe Enterprises Retail Fixtures is gearing up for its stock market debut today with investor anticipation modestly buoyed by a Rs 6 grey market premium (GMP). The company's IPO, which closed on June 24, raised Rs 169.74 crore through a fresh issue of 1.23 crore equity shares at a fixed price of Rs 138 per share. ADVERTISEMENT Based on the latest GMP, the estimated listing price is Rs 144, suggesting a listing gain of 4.35%. The allotment was finalized on June 25. Founded in 1976, the Mumbai-based firm designs, manufactures, and installs custom retail fixtures and shop fittings for top Indian retail brands like Zudio, Westside, and Reliance Retail. Its offerings include gondola shelving, checkout counters, visual merchandising displays, and storage the company has reported impressive numbers. For the fiscal year ending March 2025, it clocked revenue of Rs 139.73 crore and profit after tax of Rs 39.19 crore. IPO proceeds will fund the setup of a new manufacturing facility, working capital needs, and investments in its subsidiary, Safe Enterprises Retail Technologies. ADVERTISEMENT With a post-issue P/E of 16.19 and market capitalization of Rs 634.53 crore, the stock enters the market with favorable investor sentiment. Listing day could offer modest gains if overall market conditions remain supportive. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
CTV News
4 days ago
- General
- CTV News
‘A bit of a slog': New public school in Saskatoon's core is years behind schedule
WATCH: A new building intended to amalgamate three westside elementary schools in Saskatoon is years behind schedule, the school board says.
Mint
4 days ago
- Business
- Mint
Trent doesn't prefer selling dining tables and investors must appreciate that
Among Trent Ltd's key strategic priorities is its goal to stay focused on categories that drive repeat consumption. Dining tables, clearly, don't fit that bill—after all, people don't buy dining tables often. Nuvama Institutional Equities highlighted this as one of the key takeaways from last week's analysts meeting: 'Management reaffirmed the long-term focus on India and emphasised their preference for categories that generate repeat purchases. Categories with low purchase frequency such as dining tables are not of interest." Read this | Trent stands tall even as growth momentum cools Trent's playbook is straightforward. It wants to build its own portfolio of brands, expand into adjacent categories like beauty, innerwear and footwear, and grow its geographic footprint. The company aims to deepen store density in attractive micro-markets to capture greater market share—a strategy that, in turn, strengthens its brand equity. That also means it's less concerned with metrics like same-store sales growth (SSSG) or store count. However, it remains mindful of maintaining a certain threshold SSSG to protect profit margins. To drive repeat purchases, Trent is scaling and leveraging its loyalty programme WestStyleClub, which grew 38% year-on-year in FY25 to 16.4 million subscribers. Over 90% of the company's flagship format Westside's revenues are attributable to its loyal WestStyleClub members. Westside offers apparel, footwear and accessories, along with furnishings, decor and a range of home accessories. In FY25, Trent added 40 Westside stores and 244 Zudio outlets, while consolidating 24 stores in each format, bringing the total to 248 Westside and 765 Zudio stores, including two in the United Arab Emirates. Read this | 'Westside lessons helped Zudio; selling apparel online inefficient' Meanwhile, Trent is also bullish on the growth prospects of its Star format. In the coming years, emerging categories, including beauty & personal care, innerwear and footwear, are expected to be significant growth drivers. These categories now contribute over 20% of standalone revenues led by robust volume growth. Trent sold 50 million units of innerwear in FY25, up 47% year-on-year and 42% higher footwear units to 27 million. Volume growth of beauty products was 65% to 81 million pieces. 'Assuming an average selling price of ₹150, this implies a significant ₹1,200 crore of revenue from beauty, larger than several D2C brands," said a Kotak Institutional Equities report dated 19 June. Having said that, new categories would take time to gain meaningful scale. Overall, the management aims to clock around 25% sales CAGR over the medium-to-long term. Analysts from Goldman Sachs India believe this is achievable and can be driven by Zudio's apparel market share going from the current about 1.5% to about 3.5% over the next five years (Goldman's thesis). The broking firm's current FY25-30 sales CAGR estimate is 24.5%. Read this | Zudio, Trent's greatest strength, may also be its biggest weakness In FY25, Trent's value retail fashion format Zudio, offering products at attractive prices, surpassed $1 billion dollars in sales. The company's standalone revenue stood at ₹16,668 crore in FY25, representing 40% year-on-year growth, which is nothing to sneeze at. However, growth has slowed down from the previous two years when it was close to 55% and 100% in FY24 and FY23, respectively. As such, much of the recent underperformance in Trent's shares reflects its slower revenue growth over the past few quarters, set against a broader slowdown in consumer discretionary spending. The Trrent stock is down 27% from its 52-week high of ₹8,345 touched in October. Also read | Trent's 1,000% rally takes a breather. Can a Sensex rejig revive its fortunes? 'Back-ended strong store additions in Zudio should aid growth in FY26. However, recovery in SSSG across fashion and Star formats would be a key near-term monitorable," said Motilal Oswal Financial Services.
Economic Times
20-06-2025
- 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)
Mint
19-06-2025
- Business
- Mint
Trent sticks to the long-term goal of growing 25% every year
Tata group-backed Trent Ltd remains committed to the long-term target of growing 25% annually, focusing on brands such as its value fashion format Zudio, opening stores in micro-markets, and expansion into new categories, the retailer told analysts at its investor day. Trent aims to remain relevant in the fashion business by using Zudio as its primary growth engine, according to reports by multiple brokerages. It seeks to operate in categories with repeat consumer purchases instead of chasing metrics like like-for-like (LFL) sales growth, store count growth, and total addressable market (TAM), analysts at Nuvama Institutional Equities said in a report released on Thursday following Trent's 18 June investor day meet. 'There is no point driving LFL via discounts or driving price-led growth at the cost of volumes (and losing relevance) or chasing TAM by adding more and more categories. Trent operates under a distinct set of constraints compared to other brands," the report said. It added that the retailer's commitment to no discounting, maximizing full-price sales, avoiding advertising, and exclusively using private labels significantly narrows its strategic options. Trent is aggressively pursuing growth, aligning with Noel Tata's vision, which is to grow the retailer 10x its current size. Noel serves as the chairman of both Trent and Tata Trusts. 'Two years ago, I had envisioned that Trent would one day be 10 times bigger. Since then, the revenue run rate has doubled. The headroom for growth remains enormous, and I am confident that we will reach this milestone in the not-too-distant future,' he said in the annual letter to its shareholders earlier this month. Trent reported revenues of ₹ 17,134.6 crore in 2024-25, up 38.4% year-on-year. Profit for the fiscal year grew 3.85% on-year to ₹ 1,534.41 crore. Trent operates 1,091 stores as of 31 March 2025. Zudio, its fast-growing value fashion chain, led the expansion with 244 new outlets, increasing its presence to 765 stores across 235 cities, including its first two overseas stores in 2024-25. The brand, launched in 2016, crossed a billion in sales after nearly a decade of operations, according to the company's annual filing. 'Zudio has the potential to match Westside's profitability profile over the medium term, given improving unit economics and scale benefits,' Nuvama said in its post-earnings call report. Westside, the company's lifestyle and apparel brand, ended the year with 248 stores. Trent's apparel division, which includes brands such as Zudio and Westside, contributed about 80% of the company's overall revenue. The Tata-backed company is aiming for significant growth in this segment without specifying a timeline. The stock has rallied by over 700% over the last five years on BSE. India's overall retail market is projected to grow to $2 trillion within the next decade, up from $820 billion in 2023, according to estimates by Boston Consulting Group (BCG). In fashion and apparel, Trent's formats compete with the likes of Max Fashion (Landmark Group), V-Mart Retail, Reliance Retail's Azorte, Aditya Birla Fashion and Retail Ltd's Pantaloons, and Style Up, among others. Trent largely operates in the value-mid priced segment in apparel, footwear, and home goods. It also operates Zara (fashion retail) and Star (food and grocery chain) stores in India. Despite a six-fold jump in revenues during FY19-25, management indicated that Trent's share in the country's fashion and lifestyle retail industry remains in low single-digits, analysts at Motilal Oswal Financial Services said. However, the company believes there is still a 'long runway' for growth and aims to grow at 25% annually over the longer term through a multi-brand, cluster-based approach to increase its market share in key micro-markets, they added. It is looking to ramp up its presence in categories such as beauty through Zudio Beauty; it recently launched its range of lab-grown diamonds under the brand 'Pome'. 'We continue to like Trent for its robust footprint additions, strong double-digit growth, long runway for growth in Star (presence in just 10 cities), and potential scale-up of new categories,' they said. The brokerage reiterated a 'buy' rating on the stock while keeping its FY26-27 estimates unchanged. Meanwhile, Trent remains 'bullish' on the growth opportunity in the food and grocery segment via its Star format but will grow 'sensibly', focusing on the right economics and driving a greater share of its own brands. Star Bazaar operates via Trent Hypermarket Pvt. Ltd, a joint venture with British retailer Tesco PLC. Star Bazaar experienced a 25% on-year revenue growth during 2024-25, contributing approximately 15.75% of Trent's consolidated revenue. This is in contrast to its larger rival, Avenue Supermarts, which operates DMart. Avenue Supermarts generated ₹ 59,358 crore in revenue, with 57.7% coming from food, 20% from fast-moving consumer goods (FMCG), and 22.3% from general merchandise and apparel. These segments compete directly with Trent's value fashion and daily essentials offerings. Trent's push comes as DMart faces a slowdown in its food and FMCG segments, which together contribute about 77.4% of the company's overall revenue to rising competition from quick commerce players such as Swiggy, Zomato, and Zepto. DMart is in the midst of a leadership transition. In February 2026, Anshul Asawa, the designated chief executive, will succeed Neville Noronha. However, building scale in the Star Bazaar segment would be a 'long-term process', potentially spanning decades, said analysts at Nuvama. Meanwhile, the company emphasized its focus on prioritizing growth in India and on selling products that customers buy repeatedly. 'Unlike other retailers' obsession with volume, Trent's strategy is rooted in brand equity, customer experience, and staying relevant. The Indian market is a top priority, with most operations and the supply chain rooted domestically, with limited international presence (Zudio in Dubai),' analysts at Jefferies said in a separate report following the investor meet. Trent is a structural story on the growing organized apparel market in India, they added. However, expensive valuation keeps us on the sidelines. In the base case, Jefferies expects a compound annual growth rate of 35% in standalone sales over FY25-28E.
