Trent Limited, the retail arm of the Tata Group, has caught investor attention once again. The Trent share price rose by 3% on Monday to ₹6,078, making it the top gainer on the Nifty 50. This marks the second consecutive day of rally in the stock, even as broader market sentiment remains under pressure due to rising geopolitical tensions.
Despite being down nearly 15% since
the start of 2025, Trent's stock has shown signs of a turnaround. The surge in
share price came after a series of bullish brokerage reports that
highlighted the company’s growth potential, especially from its fast-growing
value fashion brand, Zudio.
Trent Share Price: What’s Driving the Surge?
At around 12:40 PM on Monday, Trent
shares were trading at ₹6,060, up 2.75% from the previous close. The spike
came on the back of renewed buying interest, especially from institutional
investors responding to positive brokerage calls.
Here’s a quick look at what the
brokerages are saying:
HSBC Initiates Coverage with ‘Buy’
- HSBC began its coverage on Trent with a 'Buy' rating.
- The global financial firm believes Trent is
well-positioned for rapid growth, thanks to the expansion of its Zudio
chain.
- Zudio, which caters to the value fashion segment, is
expected to add about 200 stores each year between FY25 and FY28.
- Despite delivering stronger growth and profitability,
the Trent share price trades at a P/E ratio of 2.4x, which is lower
than peers like Vishal Mega Mart and Page Industries.
“Trent is an underappreciated growth
story. With the rapid pace of expansion and a proven business model, the
company offers long-term upside,” HSBC noted.
Macquarie Retains ‘Outperform’ Rating
- Macquarie is also bullish and has maintained its ‘Outperform’
rating.
- The firm sees Trent achieving 25% annual sales
growth over the next 10 years, a highly ambitious but
well-structured plan.
- The growth will be driven by:
- New store launches
- Entry into adjacent fashion and lifestyle categories
- Operational efficiency and cost control
Macquarie also praised Trent’s
disciplined expansion model and strong brand recall.
Morgan Stanley Reaffirms ‘Overweight’ View
- Morgan Stanley continued with its ‘Overweight’
stance on Trent.
- The firm noted that Trent’s management remains
confident about achieving a 10x growth target by FY32.
- The brokerage added that Trent’s new stores reach high
throughput (revenue per square foot) within just 12-24 months,
which is impressive compared to industry norms.
Strong Financial Performance: Trent’s Q4 FY24 Highlights
Let’s break down the company’s
latest quarterly performance, which has also contributed to the optimistic view
on the Trent share price.
| Particulars (Q4 FY24) | Figures |
|---|---|
| EBITDA (YoY Growth) | 37% |
| EBITDA Value | ₹656 crore |
| EBITDA Margin | 16% |
| Market Expectation | ₹580 crore EBITDA |
The Zudio Growth Story: Trent’s Winning Formula
Zudio is no longer a side project
for Trent. It’s become the central growth engine.
- The brand caters to the mass-market segment, offering
trendy clothing at affordable prices.
- As of FY24, Zudio had around 500+ outlets across
India.
- With plans to add 200 stores every year, Zudio
is rapidly becoming a dominant force in India’s ₹3 lakh crore apparel
market.
What sets Zudio apart:
- Affordable pricing
- Quick fashion cycles
- Widespread availability in Tier 2 and Tier 3 cities
- Backed by the Tata brand trust
“Zudio’s success is not accidental.
It fills a much-needed gap in the market—good quality fashion for the masses,”
said a Mumbai-based retail analyst.
Trent Share Price: Why Is It Still Down 15% in 2025?
It may seem surprising that even
after such strong fundamentals and broker confidence, the Trent share price
is still down nearly 15% YTD.
Let’s explore a few reasons:
- Profit Booking by Early Investors
After a sharp rally in 2023 and 2024, many long-term investors decided to cash out early in 2025. - Broader Market Correction
The Indian stock market faced corrections due to rising geopolitical tensions, inflationary pressures, and weak global cues. - High Valuations Scare Retail Investors
Despite the low P/E relative to peers, some market participants believe Trent’s absolute stock price (over ₹6,000) looks expensive. - Temporary Pressure on Margins
Some concerns about increasing costs and competitive pricing in the value fashion segment also weighed on investor sentiment.
Institutional vs. Retail View: Who’s Buying Trent?
Institutional investors, especially foreign institutional investors (FIIs), have
shown strong interest in Trent over the past few months. Their confidence has
been largely influenced by:
- Long-term growth visibility
- Strong execution track record
- Leadership under Tata Group
- Data-backed expansion plans
On the other hand, retail
investors are being more cautious, possibly awaiting a better entry point
or more clarity on macroeconomic trends.
Comparing with Peers: Vishal Mega Mart and Page Industries
One of the key highlights in the brokerage reports was the valuation gap between Trent and its peers:
| Company | P/E Ratio | Growth Rate | EBITDA Margin |
|---|---|---|---|
| Trent | 2.4x | High | 16% |
| Vishal Mega Mart | 3.2x | Moderate | 10–12% |
| Page Industries | 3.5x | Moderate | 14% |
Clearly, Trent is delivering better
financial performance at lower valuation multiples, making it
attractive for value-seeking investors.
What to Expect Going Forward
The outlook for the Trent share
price looks positive, especially if the company can continue executing its
expansion plan while keeping margins healthy.
Key
triggers to watch:
- Q1 FY25 results in July
- Store opening updates
- Zudio’s sales and footfall data
- Any announcements about new product lines or
international expansion
Risks:
- Any slowdown in consumer spending
- Supply chain disruptions
- Rising competition from Reliance Trends, Shoppers Stop,
and others
Investor Sentiment: Mixed but Improving
Here are some voices from the
market:
“I’ve been tracking
Trent for three years. Zudio’s model is truly impressive. I added more shares
after the recent dip,” — Ravi K., Pune-based investor
“I believe in the Tata
Group, but the current price feels a bit high for me. I’ll wait for a
correction,” — Sneha G., Mumbai-based retail trader
Expert Take: Should You Buy Trent Shares Now?
Many analysts believe the current
price levels offer a reasonable entry point for long-term investors,
especially with brokerages like HSBC and Morgan Stanley showing strong
confidence.
Here’s a summary of brokerage recommendations:
| Brokerage | Rating | Target Price |
|---|---|---|
| HSBC | Buy | ₹6,700 |
| Macquarie | Outperform | ₹6,500 |
| Morgan Stanley | Overweight | ₹6,800 |
Final Thoughts: Trent’s Growth Story is Just Getting Started
Despite a 15% fall since January,
the recent Trent share price rally shows that investor faith in the
company is still intact. With strong financials, aggressive expansion, and
endorsement from top brokerages, Trent is one stock to watch closely in India’s
evolving retail landscape.
The Zudio model has already proven
successful, and as the company continues to scale with quality and efficiency,
the runway for growth looks long and promising.
If you’re a long-term investor who
believes in India’s consumption story, Trent deserves a serious look.
Disclaimer:
The views and investment tips
mentioned in this article are based on publicly available brokerage reports and
market data. Please consult with a certified financial advisor before making
any investment decisions.
0 Comments