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Trent rallies 9% in 2 days to five-month high; brokerages see more upside
Trent share price today: Shares of Trent hit a five-month high of ₹6,214.55, as they rallied 5 per cent on the BSE in Monday's intra-day trade in otherwise a weak market.
In the past two trading days, the stock price of Tata Group-backed Trent has surged 9 per cent. It is quoting at its highest level since February 2, 2025.
At 02:16 PM, Trent was quoting 4.6 per cent higher at ₹6,176.85, as compared to a 0.44 per cent decline in the BSE Sensex. The average trading volumes on the counter jumped fourfold, with a combined nearly 2 million shares changing hands on the NSE and BSE.
The inclusion of Tata Group-owned Trent in the benchmark 30-stock BSE Sensex index with effect from today is expected to see an inflow of $330 million, according to Nuvama Alternative estimates. Track LIVE Stock Market Updates Here
Trent Outlook
In the last few years, the Trent business platform has emerged stronger, having navigated through the challenges of the pandemic. Driven by a sustained focus on the company's brands, customer experience, and strong store network expansion, the business has maintained growth momentum.
Trent, in its FY25 annual report, said the company see strong growth opportunities. The company's key strategic initiatives are aimed at accelerating the differentiation of its propositions. Supported by an integrated platform comprising supply chain, technology stack and support services, Trent's growing operating leverage would continue to drive performance and results, the company said.
Trent will expand the current footprint of over 14 million sq ft. (including Star) across the country with unique brands such as Westside, Zudio and Star to address multiple customer segments and value positioning.
Brokerages see more upside for Trent
According to analysts at Elara Capital, Trent has the right mindset to nurture a house of brands. Choices such as organic brand growth, customer acquisition, full price selling, and foraying into high-frequency categories will sustain growth. Benefits from faster inventory turns, celebrity-less A&P, and common tech infra shall pare costs.
Trent aims to be operationally India-first and foray into high-frequency categories. Fast fashion brand Zudio to remain the leader, gaining market share with a strong brand recall. Trent has a high single-digit market share in the overall fashion industry; thus, the room to grow, the brokerage firm said. It retains a 'buy' rating on the stock with a target price (TP) of ₹8,300 per share.
Meanwhile, Trent's business model over the years has increasingly tilted towards building consumer brands (such as Zudios) that will attain certain scale with growing traction, leveraging supply efficiencies, and delivering consistent performance in the long run.
Trent is aspiring for a 25 per cent compounded annual growth rate (CAGR) revenue growth in the medium to long run, driven by higher store additions (expected to add 200-220 stores per annum), share gain in micro markets and building new brands focusing on new categories. Zudio will be the key pillar of growth with close to 40 per cent growth over FY25- 27, analysts at ICICI Securities said.
Strong sourcing ability and a large focus on gaining share through expanding reach and value-centric product profile will help Trent to stay ahead of the industry in the coming years. The brokerage firm expects its revenues and PAT to grow at a CAGR of 30 per cent and 35 per cent over FY25- 27. Analysts recommended 'buy' with a SoTP-based value of ₹6,625 per share.
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