Morgan Stanley has reiterated its Overweight call on Trent Ltd., setting a target price of ₹6,359 per share, indicating a potential upside of nearly 15% from the current market price of ₹5,510.00.
The brokerage noted that Trent’s Q4FY25 performance was a mixed bag, with mid-single-digit like-for-like (LFL) growth in the fashion segment and a more-than-expected gross margin compression, which may signal inventory write-offs. These factors contributed to a 17% miss on profit after tax, largely due to associate losses.
Despite these concerns, Morgan Stanley highlighted a beat on EBITDA margins, suggesting improved operational efficiency and cost controls. The brokerage maintained confidence in the company’s long-term retail growth story, backed by its brand positioning and scale-up of formats like Zudio and Westside.
Trent shares may see movement in the near term as investors balance margin resilience against concerns on inventory and profitability.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to consult certified financial professionals before making any investment decisions.
