Trent shares declined more than 3% on Friday after global brokerage firm Goldman Sachs downgraded the stock and sharply reduced its price target. As of 12:05 PM, the shares were trading 3.27% lower at Rs 5,183.50.
The firm cut its rating from “Buy” to “Neutral” and lowered the target price by 21%—from ₹6,970 to ₹5,500. This new target suggests only a 2.4% potential upside from Wednesday’s closing price.
Goldman Sachs also revised its financial projections for the company, trimming FY26 sales and earnings per share (EPS) estimates by 5–9% and 8–13%, respectively. The revisions reflect higher-than-expected cannibalisation within Trent’s product offerings, particularly in its fast-growing value retail chain, Zudio.
Initially, Goldman had forecast Zudio to capture a 5% market share in India’s apparel market by FY35. However, with its market share at just 1.5% at the end of the last financial year, the brokerage now expects a slower trajectory of market share gains. While Zudio continues to outperform the broader apparel market, its FY25 sales growth projection has been held at 60%.
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