Trent is one of the biggest losers on Nifty today. The share price is down 2% intra-day. The share has been under pressure in 2025 thus far, plummetting almost 29% in 2025.
Motilal Oswal on Trent: Reiterates a ‘Buy’ rating
The Trent stock is under pressure but Motilal Oswal is betting on the business outlook. The brokerage firm has reiterated a ‘Buy’ rating on Trent with a target price of Rs 7,350, implying a 39% upside from the current market price of Rs 5,277. The bullish stance is backed by the company’s revenue growth, store expansion, and strong performance across key formats like Zudio and Westside.
Motilal Oswal on Trent: Retail outlook promising
Trent continues to outperform in the retail sector, with 37% year-on-year (YoY) revenue growth. According to Motilal Oswal, this was driven by the rapid scale up of Zudio, which saw 58 net store additions in the quarter.
However, a slight dip in same store sales growth moderated overall gains. Apart of this, the brokerage notes, “Trent’s industry leading growth, backed by footprint expansion and consistent consumer demand, makes it a compelling long-term investment.”
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A key factor in Trent’s growth has been its store expansion. The westside has added 14 stores, bringing the total count to 238. Meanwhile, Zudio has a net addition of 58 stores, taking the total to 635, including one in the UAE.
Motilal Oswal expects Trent’s revenue, EBITDA, and PAT to grow at a CAGR of 32%, 34%, and 39%, respectively, between FY24-27. The company’s focus on newer categories like beauty and lab-grown diamonds, as well as the expansion of its grocery business (Star chain), is expected to further drive long-term gains.
The brokerage added, “We assign 55x Mar’27 EV/EBITDA to the standalone business (Westside and Zudio; a premium over our Retail Universe, given TRENT’s superlative growth), approx. 3x FY27 EV/sales to Star JV, and 7x EV/EBITDA to Zara JV to arrive at our target price of Rs 7,350. Adjusting the value of Star and Zara, the stock is trading at 65x FY27 PE for the standalone business (vs. ~90x LT average 1-year forward PE). We reiterate our Buy rating.”
Trent Q3 performance
While Trent delivered 34% YoY EBITDA growth,
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