HSBC bullish on Trent as Zudio momentum and Westside revival drive strong outlook, initiates Buy call with target price of Rs 6,700
By Markets Desk Published on June 20, 2025, 07:43 IST
HSBC has initiated coverage on Trent Ltd. with a 'Buy' rating and a target price of ₹6,700, calling it one of the most compelling stories in the Indian retail space driven by Zudio's rapid expansion and Westside's transformation.
The brokerage forecasts ~200 new Zudio stores per year over FY25–28, and sees minimal competitive threat in the affordable fashion segment, thanks to Zudio's tight supply chain, format consistency, and pricing power. HSBC also believes Zudio Beauty—a new vertical under the brand—could be the next major value driver.
In addition, Trent is revamping its Westside format, aiming for better customer experience, store aesthetics, and private label engagement to drive same-store sales growth (SSSG). These efforts are expected to fortify margins and ensure brand relevance.
Although the stock is trading at an optically expensive 75x PE, HSBC argues that the valuation is justified on a PEG basis, which stands at 2.4x compared to 3x for Vishal Mega Mart and 4.7x for Page Industries. Given Trent's superior earnings growth, profitability, and RoCE profile, HSBC sees meaningful upside potential.
The brokerage notes that Trent's multi-format expansion strategy, disciplined cost control, and brand stickiness put it in a unique position to deliver high-quality growth over the next several years.
Ahmedabad Plane Crash
Markets Desk at BusinessUpturn.com
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Entrepreneur
16 minutes ago
- Entrepreneur
Sambhav Steels Among 5 Upcoming IPOs, SEBI Eases ESOP Rules Ahead of Busy Listing Week
The Indian IPO landscape is set to record a busy week, with five new IPOs hitting the market, Sambhv Steel Tubes Limited's initial public offer (IPO) of equity shares will debut on June 25 and SEBI issues ESOP reforms. Opinions expressed by Entrepreneur contributors are their own. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Sambhv Steel Tubes Limited's initial public offer (IPO) of equity shares will debut on June 25. According to the company, the total offer size is INR 540 crore, comprising fresh issues of up to INR 440 crore and an offer for sale (OFS) component of up to INR 100 crore, by the promoters selling shares. Bidding for anchor investors is set for June 24. The price band of the IPO is set at INR 77-82 per equity share, with bids to be made for a minimum of 182 equity shares and in multiples of 182 equity shares thereafter. The company said in a release that the net proceeds from the fresh issue of equity shares will be used towards pre-payment or scheduled repayment of a portion of outstanding borrowings, and the remaining amount will go toward corporate expenses. The IPO also consists of the Employee Reservation Portion, with a discount of INR 4 per equity share being offered for eligible employees. (Nuvama Wealth Management Limited and Motilal Oswal Investment Advisors Limited are the Book Running Lead Managers (BRLMs) to the Issue. SEBI issues ESOP reforms Market regulator Securities and Exchange Board of India recently rolled out ESOP reforms, especially relaxed rules that allow unexercised options to be retained post-listing Roma Priya, Founder, Burgeon Law, believes that the SEBI's decision to allow startup founders to hold ESOPs granted up to a year prior to listing represents a pivotal shift in how India views founder incentives in the public markets. For many years, the regulatory structure inadvertently discouraged long-term founder alignment by excluding them from key benefit structures during IPO preparation. This move is not only poised to correct the said imbalance but also sends a strong signal of regulatory maturity and startup sensitivity. "From a strategic lens, this reform strengthens the startup ecosystem's transition from private to public markets by reinforcing founder retention, reducing post-IPO churn, and making listing a more viable aspiration for younger companies. Having worked closely with hundreds of growth-stage founders, I believe this will directly encourage more startups to start preparing for public exits early, with stronger governance, cap table clarity, and structured ESOP planning as part of that journey, " said Priya. Buzzing IPO Week The Indian IPO landscape is set to record a busy week, with five new IPOs hitting the market, with the surge following a steady build-up in investor enthusiasm, reflecting the ongoing appetite for fresh equity offerings. "Market sentiment remains broadly constructive, driven by improving macroeconomic indicators, favorable liquidity conditions, and increasing participation from both institutional and retail investors. The strong performance of recent listings continues to bolster confidence and encourage broader engagement in the primary market," said Bajaj Broking in its weekly IPO lookout. The stockbroking company said that the upcoming IPOs are offering investors a mix of diverse sector opportunities, which is further reinforcing the depth and vibrancy of India's capital markets. Bajaj Broking predicts that the primary market could well surpass expectations for the first half of FY26.
Business Upturn
2 hours ago
- Business Upturn
Nifty 50 top gainers today, June 20: Trent, Jio Financial Services, Mahindra & Mahindra, Bharti Airtel and more
Indian stock markets ended sharply higher on June 20, with benchmark indices hitting high levels. The Nifty 50 closed above the 25,000 mark, settling at 25,112.40, up 319.15 points (1.29%). Meanwhile, the Sensex jumped 1,046.30 points (1.29%) to finish the session at 82,408.17. Among the Nifty 50 stocks, several companies recorded significant gains, led by Trent, Jio Financial Services and Mahindra & Mahindra. Below is a detailed look at the top gainers of the Nifty 50 (as per Trendline) for the day. Nifty 50 Top Gainers on June 20 Trent Ltd : Topped the charts with a 4.0% gain, closing at ₹5,950 . Jio Financial Services : Rose 3.3% , ending the day at ₹293.5 . Mahindra & Mahindra : Continued its strong run, gaining 3.1% to settle at ₹3,189.9 . Bharti Airtel : Moved up 3.0% and closed at ₹1,934 . Nestle India : Gained 2.8% , finishing at ₹2,383.1 . Power Grid Corporation : Added 2.2% to close at ₹292.7 . Reliance Industries : Also up 2.2% , ending the session at ₹1,464.1 . Bharat Electronics Ltd (BEL) : Rose 2.1% to ₹407.1 . HDFC Life Insurance : Increased 2.1% , closing at ₹778 . Shriram Finance: Ended 1.8% higher at ₹664. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Ahmedabad Plane Crash Bharti AirtelJio Financial ServicesMahindra & MahindraStock MarketTrent Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
Business Upturn
2 hours ago
- Business Upturn
Nifty 50 top losers today, June 20: Bajaj Auto, Hero MotoCorp, Dr. Reddy's, Maruti Suzuki and more
By Aman Shukla Published on June 20, 2025, 15:44 IST Indian stock markets ended the trading session on a high note on June 20, with benchmark indices surging to high levels. The Nifty 50 crossed the 25,000 mark, closing at 25,112.40, up by 319.15 points (1.29%). The BSE Sensex also witnessed a strong rally, rising 1,046.30 points (1.29%) to settle at 82,408.17. Despite the market's overall bullish trend, several heavyweight stocks saw significant declines during the session. Among the biggest losers of the day were well-known names like Bajaj Auto, Hero MotoCorp and Dr. Reddy's. Let's take a closer look at the top losers of the Nifty 50, according to Trendlyne. Nifty 50 top losers on June 20 Bajaj Auto was the top loser, closing 1.8% lower at ₹8,345. Hero MotoCorp ended the session down by 1.2%, settling at ₹4,331.1. Dr. Reddy's declined 0.3% to close at ₹1,322.8. Maruti Suzuki slipped 0.2% and ended at ₹12,787. ONGC registered a marginal drop of 0.1%, closing at ₹251.2. Axis Bank also fell 0.1% to finish at ₹1,216.1. Infosys ended flat, closing unchanged at ₹1,618. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Ahmedabad Plane Crash Bajaj AutoDr Reddy'sHero MotocorpMaruti SuzukiNifty Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
