Trent’s stock price is in focus as Kotak Institutional Equities downgrades the stock to ‘reduce’ and cuts its target price to ₹5,150, implying a 3.21% upside from the current market price (CMP) of ₹4,990.00.
The brokerage highlights that Trent’s stock was volatile last week following reports of aggressive store additions at Westside, which were later disproved. As per the latest update, Westside now has 240 stores, reflecting a net addition of just 8 stores year-to-date (YTD).
Kotak remains cautious, citing pressure on Trent’s revenue throughput, driven by newer Westside and Zudio stores in densely located areas. The brokerage assumes flat revenue throughput for Zudio and a trimmed revenue estimate for Westside, leading to a 1-5% EPS cut for FY26-27.
Given these challenges in growth visibility, Kotak maintains a cautious stance on the stock despite the recent correction.
Disclaimer: The views and investment recommendations in this article are sourced from brokerage reports. Business Upturn does not provide investment advice. Readers should consult financial experts before making any investment decisions.
