Trent Ltd.’s stock fell 1.7% after Kotak Institutional Equities downgraded it to ‘reduce’ and lowered its target price to ₹5,150. As of 9:55 AM, the shares were trading 1.40% down at Rs 4,929.85.
The brokerage highlighted recent volatility in Trent’s stock, fueled by reports of aggressive store additions at Westside, which were later debunked. As per the latest update, Westside now operates 240 stores, with a net addition of just 8 stores year-to-date (YTD).
Kotak remains cautious about Trent’s revenue outlook, citing concerns over pressure on revenue throughput due to the expansion of Westside and Zudio stores in densely located areas. The firm assumes flat revenue throughput for Zudio and has trimmed revenue estimates for Westside, leading to a 1-5% EPS cut for FY26-27.
Given these challenges in growth visibility, Kotak remains cautious on the stock, regardless of its recent correction.
Trent Ltd.’s stock opened at ₹4,990.00, reaching a high of ₹4,997.85 and a low of ₹4,911.35 in today’s session. The stock has seen a 52-week high of ₹8,345.00 and a low of ₹3,843.00.
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