Trent Limited, a key player in the fashion retail sector under the Tata Group umbrella, is witnessing a notable surge in its stock value, with shares reaching an impressive Rs 5,670 during trading hours. This upward momentum follows a positive rating upgrade from the renowned global brokerage, Goldman Sachs, which has set a target price of Rs 8,120 per share—representing a potential upside of 45%. The brokerage emphasizes the robust growth trajectory of Zudio, Trent’s value fashion brand, particularly highlighting its rapid store expansion anticipated in FY25.

Zudio’s Market Position Strengthens

Zudio is rapidly carving out a larger slice of the market share within the value retail segment. Analysts at Goldman Sachs assert that Trent boasts the most significant earnings growth potential among companies in the Indian consumer sector, making it an attractive option for long-term investors.

• Key highlights:
  • Zudio’s store openings are accelerating.
  • Trent’s growth potential is unmatched in the Indian market.

Recent Developments Boost Investor Confidence

In addition to Goldman Sachs, Axis Securities has noted the company’s expansion, reporting that Trent has surpassed its previous peak with over 1,000 large-format fashion stores. This includes 248 Westside and 757 Zudio outlets. Such announcements have led to a remarkable increase in trading activity, with the stock experiencing its highest single-day transaction volume since February 2025.

Trent’s Q3 Financial Performance

Trent’s financial results for the third quarter of this fiscal year reveal a remarkable performance. The company’s consolidated net profit surged by 45.6% year-on-year, reaching Rs 496.54 crore, compared to Rs 341.0 crore from the same quarter last year. Additionally, consolidated revenue from operations rose 34.3% to Rs 4,656.6 crore, up from Rs 3,466.6 crore in Q3 of FY24. The company’s EBITDA also witnessed a healthy growth of 34.4%, amounting to Rs 838 crore.

Analyzing Trent’s Stock Performance

Over the last five trading days, Trent’s share price has appreciated by 4.5%, contributing to a 13% return in the past month. However, it’s worth noting that the stock has declined over 25% in the last six months. Despite this volatility, Trent has managed to enhance investor wealth by nearly 44% over the past year.

In comparison, the Nifty 50 index has experienced a decline of more than 2% in the past week, though it has returned 4.7% over the last month and dipped 1.67% since November 2024.

As Trent continues to expand its footprint and shows strong financial growth, investors are keenly watching its next steps in the competitive fashion retail landscape.