India’s specialty retail sector is experiencing robust growth, driven by rising consumer spending and digital adoption. As of 2024, the overall retail market is valued at approximately USD 950 billion, contributing 10 percent to India’s GDP and employing 8 percent of the workforce. The sector is projected to grow at a CAGR of 13.21 percent from 2025 to 2033, fueled by e-commerce, urbanization, and increasing demand for personalized experiences.
With a market capitalization of Rs 1.90 lakh crore, the shares of Trent Ltd were trading at Rs 5,361.65 per share, decreasing around 0.24 percent as compared to the previous closing price of Rs 5,374.35 per share.
Brokerage Recommendations & Rationale
Axis Securities, one of the well-known brokerages in India, gave a ‘Buy’ call on the Tata group stock with a target price of Rs 6,650 apiece, indicating a potential upside of 24 percent from Tuesday’s price of Rs 5,362 per share.
According to the brokerage, Trent delivered a strong Q4FY25 performance with revenue rising 29 percent YoY to Rs 4,106 crore, driven by solid fashion segment growth. FY25 revenue and volume grew 40 percent YoY, aided by rapid expansion, including 10 new Westside and 130 Zudio stores, with a total store count is 248 and 765, respectively, which shows a deepening presence in key urban markets.
Operational and Financial Highlights
Looking forward to the company’s financial performance, revenue magnified by 27 percent from Rs 3,298 crore in Q4FY24 to Rs 4,217 crore in Q4FY25, Further, during the same time frame, net profit plummeted by 56 percent from Rs 712 crore to Rs 312 crore.
As of March 31, 2025, Trent Ltd. operates 248 Westside stores in 86 cities and 765 Zudio stores in 235 cities (including Dubai), with 5.4 Mn+ and 7.9 Mn+ sq. ft. retail space respectively. Zudio grew at a 55 percent CAGR, adding 130 stores in Q4 FY25, highlighting rapid expansion.
As of Q4 FY25, Trent’s market capitalization surged to Rs 1,89,302 crore, growing at a 62 percent CAGR since FY20. The shareholding is led by Promoters (37 percent) and Foreign Corporations (25 percent), followed by Retail (15 percent) and Funds (13 percent), reflecting strong institutional and investor confidence in the company’s sustained performance and growth.
Written by Abhishek Singh
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