HSBC has maintained its buy rating on Trent with a target price of ₹6,500, saying that strong growth momentum in its value retail chain Zudio and disciplined expansion across formats continue to support the investment case. The brokerage noted that Zudio stores have low overlap, with only 12 of 235 cities having more than 10 outlets, indicating significant room for expansion.
Same-store sales growth is assumed at 6% for FY25–28, compared with historical high double-digit levels, reflecting a more balanced view of consumer spending trends. HSBC said multiple growth levers, including new store openings, deeper penetration in tier-II and tier-III cities, and format innovation, support its estimates.
It acknowledged that the valuation, at 75 times forward earnings, appears expensive relative to peers, but said the strength of the brand, scale of opportunity, and proven execution capability warrant maintaining a buy stance. HSBC added that Trent remains one of the strongest structural growth stories in Indian retail.
Disclaimer: The views and recommendations made in this article are those of HSBC. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
