A prominent Indian fashion and lifestyle retailer known for its popular brands is the focus of bullish analyst attention. This article covers the optimistic outlook from Morgan Stanley and Citigroup, highlighting a potential 35% upside and a projection for the company to grow its revenues tenfold by FY32 compared to FY23 levels.
Trent Limited’s stock, with a market capitalisation of Rs. 2,03,516 crores, rose to Rs. 5,740.50, hitting a high of up to 2.02 percent from its previous closing price of Rs. 5,626.50. Furthermore, the stock over the past year has given a return of 6.8 percent.
Target by Morgan & Citi
1. Citi on Trent:
Citi has maintained a “Buy” rating on Trent with a target price of Rs 7,600, implying an upside potential of 35%. The bullish stance is supported by the company’s ability to scale efficiently, with new stores achieving high throughput and maturity within 12–24 months.
Trent’s aggressive yet sustainable expansion plan of around 200 stores annually remains feasible without compromising on quality, customer experience, or store economics. Notably, same-store sales growth (SSSG) is volume-driven, as the company avoids price hikes. Additionally, the value of retail space is not a zero-sum game, suggesting room for multiple winners. Trent’s strong unit economics also result in minimal store closures.
2. Morgan Stanley on Trent
Morgan Stanley has maintained an “Overweight” rating on Trent with a target price of Rs 6,359, indicating an upside of 13%. The brokerage remains optimistic about the company’s long-term vision, with management reaffirming its ambition to grow revenues 10x from FY23 levels by FY32, while maintaining a focus on profitability.
Trent continues to enhance the quality of its store portfolio and expand store density in nearby markets. In FY25, the company was both free cash flow and net cash positive, with return ratios improving to record levels, supported by better profitability and stronger asset turnover.
Financial Highlight
The company reported revenue of Rs. 4,217 crore in Q4FY25, marking a YoY growth of 27.9% from Rs. 3,298 crore in Q4FY24 but a QoQ decline of 9.4% from Rs. 4,657 crore in Q3FY25. Despite strong annual growth, the sequential dip suggests a slowdown in demand or execution during the quarter.
Net profit stood at Rs. 312 crore, down 56.2% YoY from Rs. 712 crore and down 37.2% QoQ from Rs. 497 crore, mainly due to a one-time exceptional gain in Q4FY24. The stock is currently trading at a high P/E of 141, reflecting premium valuation, while the debt-to-equity ratio remains comfortable at 0.41, suggesting manageable leverage.
Written By Fazal Ul Vahab C H
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