One of the Tata Group stocks engaged in retailing a wide range of products, including fashion apparel, footwear, accessories, and groceries, through various formats such as Westside, Zudio, Star Bazaar, and Landmark. The stock has jumped 5.75 percent after Elara Securities targets an upside potential of 37.92 percent
Stock Price Movement
With a market capitalization of Rs. 2,26,978.74 crores, the share of Trent Limited has reached an intraday high of Rs. 6,517.45 per equity share, rising nearly around 5.75 percent from its previous day’s close price of Rs. 6,163.05.
Company Overview
Trent Limited is an Indian retail conglomerate operating multiple store formats, including Westside for apparel and home goods, Zudio for value fashion, Utsa for ethnic products, and Star Hypermarkets for groceries and general merchandise.
The company also owns the Landmark chain for toys, books, and sports goods. Trent operates over 300 stores across its various retail brands.
Target Price
Elara Securities has maintained a buy rating on Trent Limited and given a target price of Rs. 8,500, which has an upside potential of 37.92 percent from the closing price of Rs. 6,163.05.
Rationale
Elara expects Trent Limited to achieve strong growth between FY24 and FY28, with a 27 percent annual growth in revenue, 29 percent in EBITDA, and 38 percent in net profit. Westside is projected to add about 25 stores yearly, while Zudio will expand rapidly, adding 120-140 stores by FY26-28. Star Bazaar plans 20 new stores, Zara will add two, and Massimo Dutti’s expansion is expected to remain limited during this period.
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Company Growth and Market Expansion
Zudio is expected to play a pivotal role in Trent Limited’s growth, with store additions projected to grow at an 18 percent CAGR between FY24 and FY28. The fast-fashion segment, where Zudio operates, is anticipated to expand its share within the apparel sector from 10 percent in FY24 to 14 percent by FY27, bolstered by Zudio’s popularity among Gen Z despite increasing competition.
Trent is also expected to achieve 30-40 percent higher revenue per square foot and stronger EBITDA margins due to its effective product-market fit, affordable quality offerings, and swift design-to-shelf cycle, ensuring steady growth with minimal advertising expenses.
Recent quarter results
Trent Limited‘s revenue has increased from Rs. 2,982 crore in Q2 FY24 to Rs. 4,157 crore in Q2 FY25, which has grown by 39.40 percent. The net profit of rent Limited has also grown by 46.93 percent, from Rs. 228 crore in Q2 FY24 to Rs. 335 crore in Q2 FY25.
Written By – Nikhil Naik
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