Trent Surges 9% In 2 Days To Five-Month High; Should You Invest? | Markets News
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Trent shares surged nearly 9% in two days, hitting a five-month high of Rs 6,158.50 on the BSE
Trent Shares
Trent Share Price: Trent shares surged nearly 9% in two days, hitting a five-month high of Rs 6,158.50 on the BSE and Rs 6,163.50 on the NSE on June 23. The rally was driven by expectations of strong inflows ahead of the upcoming Sensex rebalancing.
The Tata Group stock has been buzzing of late on Dalal Street, despite the Indian stock market being under pressure amid rising tensions in the Middle East, as the conflict between Iran and Israel deepens.
Optimism surrounding the stock was fueled by the company’s continued commitment to its long-term target of achieving 25% annual growth, with a focus on value fashion brand Zudio, expansion into micro-markets, and entry into new categories, the retailer told analysts at its investor day on June 18.
The bullish sentiment follows a solid Q4 performance. Trent posted a 37% year-on-year jump in EBITDA to Rs 656 crore, well ahead of market expectations of Rs 580 crore. Margins also improved to 16%.
Trent aims to remain relevant in the fashion business by using Zudio as its primary growth engine, according to reports by multiple brokerages. “Remaining relevant in the fashion business is the most important factor, and all decisions are centered around that. LFL, store count growth and TAM are all secondary. There is no first-mover advantage really. So many first movers have become obsolete. There is no point driving LFL via discounts or driving price-led growth at the cost of volumes (and losing relevance) or chasing TAM by adding more and more categories,” analysts at Nuvama Institutional Equities said in a report released on Thursday following Trent’s 18 June investor day meet.
Analysts’ Take
Brokerages remain bullish on the stock. HSBC recently initiated coverage with a ‘Buy’ rating, citing rapid expansion of Trent’s value fashion brand Zudio, which is expected to add around 200 stores annually from FY25 to FY28. HSBC also noted that Trent trades at a more attractive price-to-earnings ratio compared to peers, despite better growth and profitability.
Macquarie retained its ‘Outperform’ rating, pointing to the company’s plans to grow sales by 25% annually over the next decade through store expansions, new product categories, and better cost controls.
Morgan Stanley reiterated its ‘Overweight’ stance, citing management’s confidence in achieving a 10x growth target by FY32. The brokerage highlighted that new Trent stores typically achieve high throughput within 12–24 months of opening.
In Q4, Trent reported a 37% YoY rise in EBITDA to Rs 656 crore—beating estimates of Rs 580 crore—with margins expanding to 16%.
As of 12:40 pm on Monday, the stock was trading at Rs 6,060, up 2.75% for the day, though it remains down about 15% year-to-date.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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