Contact Members/Sign Up Reg Form

Axis selects Trent, Westlife Foodworld, and Relaxo as top retail stocks post Q4 results

Following the conclusion of the March quarter (Q4FY24) results season, brokerage house Axis Securities has identified Trent, Westlife Foodworld, and Relaxo Footwear as its top picks in the retail sector.

In its review note, the brokerage highlighted a mixed performance among retail companies. Premium retailers have sustained their growth momentum, while value retailers are gradually recovering, and Quick Service Restaurants (QSR) continue to face challenges. The companies anticipate rural growth to improve gradually due to increased government spending, easing inflation, and higher urban remittances. However, EBITDA margins have been under pressure due to negative operating leverage stemming from subdued topline performance.

Stay informed with the latest news. Follow DXB News Network on WhatsApp Channel   

Axis Securities reported that consumer demand remains weak, particularly affecting the discretionary sector, with a significant impact on QSR, although the value segment has shown some signs of recovery. The premium segment continues to perform strongly, while the performance of the value segment varies. Despite the subdued environment, most companies in its coverage are maintaining or increasing store opening guidance, focusing on smaller towns, indicating strong long-term growth prospects.

The brokerage outlined several factors that make the retail sector an attractive investment opportunity. The rapid formalization of the largely unorganized Indian retail market presents significant potential, especially in smaller cities and towns where consumers are increasingly opting for branded products due to rising disposable incomes.

These smaller cities are experiencing faster growth than metros across various categories like apparel, QSR, and footwear, driven by higher aspirations and increased disposable incomes. The sector's structural growth is expected to continue, supported by higher per capita income, increased spending, and the growing participation of women in the workforce, leading to higher sales of women's wear.

Stock Picks:

1. **Trent**: Axis Securities has a ‘buy’ call on the Tata Group stock with a target price of ₹4,800. The brokerage expects strong revenue growth in the coming quarters, driven by Trent's focus on rapid store expansion and continued assortment renewal, leading to higher footfall. Additionally, the improvement in earnings profile across all formats, reduction in losses at Star Bazaar, and improved traction at the Inditex JV are positive indicators for the company.

2. **Westlife Foodworld**: The brokerage maintains a ‘buy’ call on the stock with a target price of ₹980. Axis is optimistic about WFL's strong future prospects, supported by its robust execution track record and growth initiatives. It anticipates healthy revenue and EBITDA growth driven by expanding categories like McDelivery and McCafe, leveraging delivery platforms, and increasing store openings in smaller cities.

3. **Relaxo Footwear**: Axis has a ‘buy’ call on the stock with a target price of ₹950. The company's revenue decreased marginally YoY, but EBITDA grew, driven by improved margins due to lower raw material costs. Axis expects demand to improve for Relaxo, especially in rural areas, with good monsoons.

Axis Securities remains bullish on these retail stocks, anticipating their continued growth and resilience in the evolving market landscape.

June 11, 2024 6 p.m. 2310

#trending #latest #AxisSecurities #RetailStocks #Trent #WestlifeFoodworld #RelaxoFootwear #StockMarket #Investing #RetailSector #FinancialNews #MarketAnalysis #EconomicOutlook #InvestmentOpportunity #breakingnews #worldnews #headlines #topstories #globalUpdate #dxbnewsnetwork #dxbnews #dxbdnn #dxbnewsnetworkdnn #bestnewschanneldubai #bestnewschannelUAE #bestnewschannelabudhabi #bestnewschannelajman #bestnewschannelofdubai #popularnewschanneldubai

Sharjah Ruler Approves Creation of Sharjah Creative Quarter

uae news / uae-national
Jan. 27, 2025 6:12 p.m. 367

Sheikh Dr. Sultan bin Mohammed Al Qasimi, Ruler of Sharjah, has issued an Emiri Decree to establish and organize the Sharjah Creative Quarter (SCQ)...Read More.

2 Non-Muslim Members Among 14 Changes in Waqf Amendment Bill

global news / world news
Jan. 27, 2025 5:49 p.m. 363

Ruling BJP and allies proposed 23 changes to the Waqf Amendment Bill, while the opposition suggested 44, but none were accepted...Read More.

Sharjah Ruler Approves Creation of Sharjah Creative Quarter

Sheikh Dr. Sultan bin Mohammed Al Qasimi, Ruler of Sharjah, has issued an Emiri Decree to establish and organize the Sharjah Creative Quarter (SCQ)

2 Non-Muslim Members Among 14 Changes in Waqf Amendment Bill

Ruling BJP and allies proposed 23 changes to the Waqf Amendment Bill, while the opposition suggested 44, but none were accepted

Exploring Dubai's Art and Culture Beyond the Skyscrapers

Discover Dubai's vibrant art and culture beyond its famous skyline.

Drug Kingpin Arrested After Wife's Social Media Reveals Location

Rodriguez shared photos at landmarks like the Eiffel Tower and Trevi Fountain, attracting DEA agents monitoring the couple's online movements

Thousands Return to North Gaza for 1st Time Since War as Israel Opens Crossings

After news of open crossings, tens of thousands of Gazans started walking north on Monday morning, carrying their belongings

Taylor Swift Stuns in ₹4.5 Lakh Louis Vuitton Jacket at Travis Kelce's Match

Taylor Swift's Louis Vuitton jacket stole the spotlight as she cheered for boyfriend Travis Kelce during the AFC Championship game

Anushka Sharma Stuns in Yellow Lehenga Worth ₹1.6 Lakh

Anushka Sharma is radiating elegance in her yellow lehenga designed by Mahima Mahajan. The stunning outfit exudes royal charm and costs ₹1.6 lakh, leaving every

Palestinian Voices Shine at Sundance Film Festival 2025

Palestinian-American director Cherien Dabis, set to shoot her personal drama *All That’s Left Of You* in the West Bank, was forced to reconsider her plans after

Colombia Reverses Deportation Decision After Trump’s Threats

Colombia agrees to accept deported citizens after Trump's tariff threat on Sunday, reversing defiance to US plans

From Underdogs to Winners: Amazing Comebacks in Sports

Discover inspiring sports comebacks where underdogs triumphed

Get In Touch

3001E, 30 Floor, Aspin Commercial Tower, Sheikh Zayed Road, Dubai, UAE

+971 52 602 2429

info@dxbnewsnetwork.com

LAUNCH OF DNN
Follow Us

© DNN. All Rights Reserved.