Macquarie has an “outperform” rating on Trent with a price target of ₹7,200 per share. The stock ended the previous trade session at ₹5,728 apiece.
Macquarie said Trent, in its analyst meet, stated it is targeting its sales to grow at a Compounded Annual Growth Rate (CAGR) of 25% over the next decade, aided by store expansion, and expansion into adjacent categories, along with cost control initiatives.
Macquarie said it is cautious on Trent’s Star grocery format due to competition from quick commerce and limited historical examples of success of private brands in the grocery segment.
The brokerage said it also believes tech investments in supply chain have the potential to further enhance Trent’s competitive lead in comparison to its peers for the fashion formats.
Meanwhile, Motilal Oswal has a “buy” target on the stock with a target price of ₹6,900 per share.
The brokerage said the back-end strong store additions in Zudio should aid growth in FY26. Recovery in same store sales growth (SSSG) across fashion and Star formats would be a key near-term monitorable.
Brokerage firm Jefferies has a “hold” rating on the stock with a target price of ₹5,900 apiece. It said organic growth is preferred over merger and acquisitions. Focus is on propositions which are repeatable, it added.
Trent’s key triggers include strong backward integration and supply chain tech, 73% share of Trent’s own brands in Star, seeding new brands — Utsa, Samoh and Zudio Beauty — and emerging growth categories such as innerwear, footwear and beauty.
The company reported a 37% increase in its fourth quarter earnings before interest, tax, depreciation and amortisation (EBITDA) to ₹656 crore from the previous year. It was also above Street estimates of ₹580 crore.
The company’s EBITDA margin for the March quarter expanded to 16% from 15% in the year-ago period, while a CNBC-TV18 poll had expected the margins to narrow by 120 basis points.
Of the 24 analysts that have coverage on the stock, 17 have a “buy” rating, three have a “hold” rating and four have a “sell” rating.
Shares of Trent ended the previous session 1.8% higher. The stock has gained 19% this year, so far.
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