Trent Ltd. share price target

Trent Ltd is a leading Indian retail company that operates stores under the Westside, Zudio and Star Bazaar brands, specialising in apparel, footwear, accessories, toys, games and other lifestyle products....

Trent’s Q1FY26 performance beat expectations led by higher EBITDA margin than expected, while SSSG moderated to low-single digits versus mid-single digits in Q4FY25.

With a 15% upside potential from the CMP, we maintain our BUY rating on the stock.

Trent reported revenue growth of 40% YoY, aided by footprint expansion (29%/40% YoY store/area additions) and double-digit LFL (SPSF up 4% YoY).

In its analyst meet, Trent’s management provided insights about the company’s strategies and key focus areas, which will help the company to deliver strong double-digit growth in the coming years.

Despite robust growth over the past few years (6.5x revenue growth over FY19-25), management indicated that Trent’s share in India’s fashion and lifestyle retail industry remains in low-single digits.

Considering the company's promising growth outlook, we recommend a BUY on the stock with a potential upside of 10% from the CMP.

Trent’s Q4FY25 performance beat expectations led by higher EBITDA margin than expected, while SSSG moderated to mid-single digits versus high-single digits in Q3FY25.

With a 24% upside potential from the CMP, we maintain our BUY rating on the stock.

With a 35% upside potential from the CMP, we maintain our BUY rating on the stock.

Trent Ltd (TRENT) delivered yet another robust quarter, albeit slightly weaker than our high expectations.

We recommend a BUY with a near term TP of Rs 6,050 implying an upside of 10 from the CMP

With a 15% upside potential from the CMP, we maintain our BUY rating on the stock.

Trent Ltd (TRENT) continued to buck the weak consumer sentiment trends, delivering robust ~40% YoY revenue (though weaker than 50%+ YoY in the past few quarters) and 46% YoY PAT growth in 2Q.

Trent’s Q2FY2025 numbers were strong amid muted demand, with revenues growing by ~40% y-o-y, EBITDA margins stable y-o-y at 15.9% and PAT rising by 46% y-o-y.

With a 12% upside potential from the CMP, we maintain our BUY rating on the stock.

Trent continued to report strong standalone/consolidated revenue growth of 55%/50% YoY to INR119b/INR124b in FY24, aided by 51% YoY area addition and +10% LFL growth. Despite a slight contraction in standalone gross margin by 20bp (due to higher Zudio mix), EBITDA margin (pre Ind-AS) improved to 11.7% (up 300bp YoY), aided by lower ad spending and operating leverage.

Trent continues to post strong standalone/consolidated revenue growth of 55%/50% YoY to INR119b/INR124b in FY24, aided by 37% YoY store addition and 10% LFL growth.

We retain Buy rating on Trent with a revised PT of Rs. 5,838. Consistent industry outperformer and strong growth levers makes it a strong play in lifestyle fashion space. Stock trades at 58x/44x its FY2025E/26E EV/EBITDA, respectively.