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Systematix Report
Trent Ltd. shares are likely to remain in focus after brokerage Systematix Research raised its target price on the retailer to Rs 3,500 from Rs 3,235 following a stronger-than-expected Q1 FY27 performance, while maintaining its 'Hold' rating on the stock. The revised target implies a potential upside of around 13% from the current market price of Rs 3,110.
Trent's revenue rising 18.5% YoY to Rs 5,670 crore, Ebitda increasing 32.6% YoY to Rs 1,110 crore, and adjusted profit after tax growing 25.8% YoY to Rs 530 crore. Ebitda margin expanded 208 basis points to 19.6%, supported by gross margin expansion and disciplined cost control.
Despite the target price hike, Systematix retained its Hold rating as it expects like-for-like growth to remain in the low-to-mid single digits amid ongoing store densification. The brokerage also flagged key risks, including slower discretionary demand, execution challenges in aggressive store expansion, increased cannibalisation from higher store density, margin normalization, intensifying competition, and slower-than-expected improvement in Star Bazaar and newer brands.
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