Synopsis: Trent Ltd’s shares are in the spotlight following the Buy target of ₹ 4,900 by a leading brokerage firm, Macquarie, as they believe the trend’s current weakness is a buying opportunity with an upside of upto 21%.
The shares of the Tata Group company specialising in operating various fashion and lifestyle retail chains, as well as hypermarkets and supermarkets, are in the spotlight as Macquarie believes Trent’s current Weakness is a buying opportunity. In this article, let’s see Macquarie’s views on the Trent.
With a market capitalization of Rs. 1,42,353.18 Crores on Tuesday, the shares of Trent Ltd rose upto 0.09 percent, reaching a high of Rs. 4060.95 compared to its previous close of Rs. 4057.15.
What Happened
Trent Ltd, which operates various fashion and lifestyle retail chains as well as hypermarkets and supermarkets, is in the spotlight after leading brokerage firm Macquarie initiated coverage with a ‘Buy’ rating and a target price of Rs. 4,900, indicating an upside potential of up to 21 percent from the day’s closing price.
Reason for the Buy Target
- Sales Weakness Seen as Cyclical: The recent slowdown in sales is considered temporary and linked to cyclical factors rather than structural issues. A recovery is expected in the second half of calendar year 2026, suggesting short-term softness.
- Zudio Store Revamp to Strengthen Competitive Moat: The company plans to revamp its Zudio stores, which are expected to enhance customer experience and strengthen its market position. This initiative aims to make it harder for competitors to erode the brand’s market share.
- Investment in RFID Technology Supports EBIT Growth: By implementing RFID technology, the company can improve operational efficiency, and this is expected to contribute positively to operating EBIT margins over time.
- Current Growth Moderation Not Structural: Macquarie believes that the slowdown in growth is temporary, driven by short-term demand weakness, rather than any fundamental issues in the business model, and this reinforces confidence in a future rebound.
- Government Initiatives Support Demand: Ongoing government policies and initiatives aimed at stimulating consumer spending provide a positive backdrop for sales. Such measures can help sustain demand even during cyclical slowdowns.
- Sales Moderation Due to Demand Weakness and Store Splitting: The company’s current sales softness is partly attributed to weaker consumer demand and the operational impact of splitting stores, and these factors are expected to normalize, supporting future growth.
- Key Catalysts for Stock Performance: Potential upside drivers include a faster-than-expected recovery in the fashion segment growth and loss reduction at Star. These factors could accelerate earnings growth and reinforce investor confidence.
Financials & Others
The company’s revenue rose by 15.90 percent from Rs. 4,157 crore in September 2024 to Rs. 4,818 crore in September 2025. Meanwhile, the Net profit rose from Rs. 335 crore to Rs. 373 crore during the same period.
The company demonstrates robust financial health and operational efficiency, with a high return on capital employed (ROCE) of 30.7% and a strong return on equity (ROE) of 30.4%. Its low debt-to-equity ratio of 0.38 indicates prudent leverage, while a PEG ratio of 0.64 suggests the stock is attractively valued relative to its growth potential.
Along with it, it has also delivered a remarkable profit growth with a 5-year CAGR of 67.2% and maintains an impressive track record of profitability, reflected in a 3-year return on equity (ROE) of 25.6%. Additionally, the company has shown consistent top-line expansion, with a median sales growth of 21.9% over the past decade.
Trent Limited, a Tata Group company, is a leading Indian fashion and lifestyle retailer operating popular chains like Westside, Zudio, and Samoh, alongside hypermarkets like Star Bazaar, offering apparel, footwear, home goods, and more, known for its value-driven approach and strong presence in India’s retail market, evolving from its roots as Lakme in the 1950s.
As of 30th September 2025, Trent operates 1,101 stores across 251 cities, including 2 in the UAE, covering a total retail area of 14.7 million sq. ft, also the brand boasts a loyalty base of over 19 million WestStyle Club members.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Trent Share Price: Here Are 7 Reasons Why Macquarie Believes the Stock Is a Buying Opportunity appeared first on Trade Brains.