Shares of Trent Limited are expected to remain in focus in today’s session after multiple global and domestic brokerages raised their target prices on the stock following a strong Q4 performance, particularly driven by margin expansion and continued store additions.
Brokerage firm Bernstein maintained its “outperform” rating on the stock with a target price of ₹5,000, highlighting that revenue growth has rebounded to around 20% year-on-year, supported by strong store expansion across formats. The brokerage noted that margins surprised positively, aided by a 170 basis points expansion in gross margins, largely led by the Westside format. It also expects operating EBIT margins to improve further due to favourable mix and efficiency gains, while maintaining a medium-term outlook of ~20% growth and ~11% EBIT margin. However, it flagged risks including macro uncertainty, input cost inflation, and concerns around capital allocation towards the Star grocery business.
Goldman Sachs retained its “neutral” rating but raised the target price to ₹4,330 from ₹4,150, citing a strong margin beat. The brokerage noted early signs of moderation in consumer demand amid a challenging macro environment, while also highlighting emerging risks from input cost inflation. It continues to value the stock at around 62x FY28E earnings.
Morgan Stanley maintained its “overweight” stance with a target price of ₹4,835, stating that EBITDA and EBIT came in ahead of estimates, supported by strong operating performance. The brokerage also pointed to improving like-for-like (LFL) growth and robust store expansion, particularly in Tier 2 and Tier 3 markets, while noting that demand remains stable despite macro headwinds.
Elara Capital reiterated its “accumulate” rating with a target of ₹4,800, emphasising strong revenue growth and margin support from operating leverage. The brokerage highlighted that expansion into smaller cities is driving long-term growth visibility, while valuing the business using a sum-of-the-parts (SOTP) approach.
Among other brokerages, Citi maintained a “sell” rating but raised its target price to ₹4,100 from ₹3,800, while ICICI Securities upgraded its target to ₹5,000 from ₹4,100 with an “add” rating. UBS remained positive on the stock with a “buy” rating and increased its target price to ₹5,450 from ₹5,300.
Overall, the consensus view points to strong execution and margin performance supporting the stock’s re-rating, even as valuations remain elevated and macro risks persist. The continued expansion of Zudio and Westside, particularly in Tier 2 and Tier 3 markets, remains a key driver for future growth.