INSUBCONTINENT EXCLUSIVE:
Shares of Tata Group-owned Trent Ltd fell as much as 8.7% to Rs 5,652 on the National Stock Exchange on Friday after the company flagged a
target price to Rs 5,884 from Rs 6,627.At the AGM, Trent said it expects revenue growth in the first quarter of FY26 to be around 20%, a
marked slowdown from the 35% compounded annual growth rate (CAGR) the company delivered between FY20 and FY25
Nuvama revised down its earnings forecasts, cutting FY26 and FY27 revenue estimates by 5% and 6% respectively, and trimming EBITDA estimates
its estimates and a more cautious investment stance.
Live EventsFocus shifts to new verticalsDespite the downgrade, Nuvama acknowledged the
additions of ~250 stores across formats as per management guidance, whose tone has historically been conservative
highlightsStar Bazaar potential: Trent Hypermarket (Star Bazaar) could outpace Westside and Zudio in scale, driven by the larger size of
10x revenue goal announced in FY23, noting that revenue has already doubled since then.Aggressive store expansion: The company aims to add
more than 250 stores across all formats in FY26 and could add more depending on market conditions and property availability.Valuation
concerns lingerTrent shares have surged nearly 70% so far in 2025, reflecting investor optimism around its growth trajectory
A significant jump in growth profile, or pickup in other levers i.e
its first quarter business update after the market opened on Friday.Trent reported standalone revenue from sale of products (including GST)
(including two in the UAE), and 29 outlets across other lifestyle concepts.(Disclaimer: Recommendations, suggestions, views and opinions
given by the experts are their own
These do not represent the views of the Economic Times)
