Trent Ltd
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Trent Limited's management has articulated a growth-oriented strategy focused on aggressive store expansion, particularly for the Zudio brand in Tier II and III cities. This approach is expected to drive revenue growth, despite current challenges such as geopolitical supply chain disruptions and rising input costs. Vista's financial outlook reflects a cautious yet optimistic view, anticipating stable margins and a revenue CAGR of 21-22% over the next several years, supported by the company's disciplined capital allocation and operational efficiencies. The retail sector's recovery, particularly in discretionary spending, aligns with Trent's strategic initiatives, although inflationary pressures and competitive dynamics present notable risks. Over the next 12-24 months, key opportunities include scaling emerging categories and enhancing digital integration, while watchpoints include managing cost pressures and ensuring effective execution in new markets
Why We Like This Stock
- Aggressive store expansion strategy targeting Tier II and III cities is expected to enhance market share and revenue growth
- Focus on operational efficiencies and technology integration is likely to support stable margins amidst rising input costs
- Strong demand recovery in the retail sector aligns with Trent's growth initiatives, particularly in emerging categories
Things To Watch Out For
- Geopolitical supply chain disruptions and rising input costs may pressure margins and operational performance
- Moderating like-for-like growth due to rapid store additions could impact short-term revenue metrics
- Intense competition in the retail space necessitates continuous innovation and differentiation to maintain market position
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 12,375 | 17,135 | 20,074 | 20,763 | 24,393 |
| Profit Before Tax (Cr.) | 1,177 | 1,900 | 2,262 | 2,487 | 2,941 |
| PBT Margin | 9.5% | 11.1% | 11.3% | 12.0% | 12.1% |
| Net Profit (Cr.) | 1,004 | 1,444 | 1,740 | 1,915 | 2,262 |
| Earnings Per Share | 19.0 | 27.3 | 32.6 | 35.9 | 42.4 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Macguire | ▲ Outperform | 3,600 | 12-Aug-2026 |
| ICICI Securities | ▲ Buy | 3,500 | 10-Aug-2026 |
| Bernstein | ▲ Outperform | 3,500 | 07-Aug-2026 |
| Citigroup | ▼ Sell | 2,950 | 07-Aug-2026 |
| Goldman Sachs | ► Neutral | 2,960 | 07-Aug-2026 |
| HSBC | ► Hold | 3,390 | 07-Aug-2026 |
| Jeffries | ► Hold | 3,435 | 07-Aug-2026 |
| Moneycontrol | ▲ Overweight | 3,312 | 07-Aug-2026 |
| Morgan Stanley | ▲ Overweight | 3,151 | 07-Aug-2026 |
| Motilal Oswal | ▲ Buy | 3,775 | 07-Aug-2026 |
| UBS | ▲ Buy | 3,800 | 07-Aug-2026 |
| Kotak Securities | ▼ Sell | 3,025 | 23-Jun-2026 |
| Ambit Capital | ▲ Buy | 5,020 | 15-May-2026 |
| Elara Capital | ► Accumulate | 4,800 | 23-Apr-2026 |
| HDFC Securities | ► Add | 4,500 | 23-Apr-2026 |
| Axis Securities | ▲ Buy | 4,450 | 06-Apr-2026 |
Company Overview
Show Company Profile
Trent Limited engages in the retailing and trading of apparels, footwear, accessories, food, grocery, and non-food products in India. The company provides apparel, footwear, and accessories for men, women, and children, as well as furnishings, decor, and a range of home accessories under the Westside brand; apparels and footwear for men, women, and children under the Zudio brand; apparel, footwear, innerwear, beauty, and accessories for women under the Utsa brand; and luxurious, differentiated, and elevated occasion wear for men and women under the Samoh brand. It also operates Star Hypermarket, a convenience store chain that offers a range of products, including staple foods, beverages, health and beauty products, apparel, home furnishings, vegetables, fruits, dairy, and non-vegetarian products; and Booker Wholesale, a cash and carry chain of stores, which provides various products, such as staple foods, beverages, health and beauty products, dairy, non-vegetarian products, and non-food products to caterers, retailers, and other businesses. In addition, the company engages in the operation of StarQuik for online grocery retailing. Further, it operates a youth-focused fashion brand under the Burnt Toast brand name. Additionally, the company engages in the provision of business support and outsourcing services relating to accounting, merchandising, human resources, payroll, sourcing, warehousing, distribution, etc.; franchisee business; invest and deploy funds related to acquisition, purchase, development, construction, leasing, sale, or otherwise dealing in real estate properties; and investment activities. It offers its products online through Westside.com, Tata CliQ, and Tata Neu, as well as My Star App. Trent Limited was incorporated in 1952 and is based in Mumbai, India.