Analysts bullish on Trent on Zudio-led growth, Nuvama increases target

Trent's focused push on brand building, category expansion, and deeper market penetration-led by its flagship value retail brand Zudio-continues to find favour with analysts.

Brokerages on Trent: Brokerages remain confident in Trent Ltd’s long-term growth story after the company’s annual Investor Day, where it laid out a clear roadmap to achieve a compound annual growth rate (CAGR) of 25 per cent over the next 5-10 years. The company’s focused push on brand building, category expansion, and deeper market penetration—led by its flagship value retail brand Zudio—continues to find favour with analysts.

 

Domestic brokerage Nuvama highlighted Trent’s strategic shift toward gaining city-level market share over like-for-like (LFL) growth, especially in urban micro-markets. Zudio remains the primary growth engine, while the financial viability of newer formats like Samoh and Zudio Beauty is still under evaluation. Therefore, Nuvama remained positive on the outlook, raising its FY27 revenue estimate 0.4 per cent and trimming PAT 4 per cent, resulting in a revised target price of ₹6,627 (up from ₹6,224). The brokerage maintained its ‘Buy’ rating.  READ STOCK MARKET UPDATES TODAY LIVE

 

Emkay, too, was upbeat on Trent’s ambition to scale through multiple levers including incubation of new brands to fill portfolio gaps, expansion of categories like innerwear, footwear, and beauty, and entry into new geographies including international markets. 

 

It noted that while the micro-market strategy may temporarily weigh on same-store sales growth (SSG), margins are likely to remain stable thanks to backend investments in Radio Frequency Identification (RFID), SAP, and design automation. The brokerage stressed that Trent’s supply chain, weekly merchandise drops, and private-label strength give it a unique competitive edge in fashion retail.

 

Morgan Stanley reportedly retained its ‘Outperform’ rating with a target price of ₹6,359, acknowledging the company’s bumpy but ambitious path to becoming a 10x revenue business. The brokerage pointed to Trent’s evolution into a multi-category player, with strong momentum in emerging businesses over the past three years.

 

Macquarie echoed similar optimism, maintaining an ‘Outperform’ rating with a Street-high target price of ₹7,200. It  noted that Trent expects a 25 per cent sales CAGR over the next 5–10 years driven by store expansion, category innovation, and tight cost controls. While Macquarie remained cautious about the Star grocery format—citing limited traction in private-label brands and rising quick commerce competition—it believes supply chain technology upgrades could sharpen Trent’s competitive edge in fashion.

 

Trent Q4 show 

The upbeat commentary comes even as Trent reported a year-on-year (Y-o-Y) profit dip in Q4FY25, due to the absence of a one-time exceptional gain booked last year. Net profit fell 56 per cent to ₹311 crore in the March quarter (Q4FY25), while revenue from operations jumped 27.87 per cent to ₹4,216.94 crore. Total income stood at ₹4,291.28 crore in the March quarter.

 

During the year, the retailer opened 244 Zudio stores and 40 Westside stores, while consolidating 24 stores from each brand. As of March 31, 2025, Trent’s store portfolio included 248 Westside, 765 Zudio (including two in the UAE), and 30 across other lifestyle formats—crossing the 1,000-store milestone. The company also expanded into 64 new cities, with a strong focus on Tier-2 and Tier-3 markets.

 

Meanwhile, operating Ebit margin improved to 9.3 per cent in Q4, up from 8.3 per cent last year. The company announced a dividend of ₹5 per share. 

 

Despite near-term earnings noise, analysts believe Trent’s execution strength and category leadership make it a compelling long-term bet.