HSBC has maintained its buy recommendation on Trent Ltd., while cutting its target price to Rs 4,800 from Rs 5,300, citing moderation in growth and a reassessment of valuation multiples. The current market price is Rs 4,045.40. Despite the cut, the revised target implies an upside of about 18% from current levels.
In its latest note, the brokerage said comfort is emerging around Trent's growth trajectory, particularly in its value fashion format Zudio, after the retailer added 192 stores in FY26, close to HSBC's estimate. While the number fell short of its original forecast of 210 stores, the additions came despite a notable slowdown in revenue per square foot, negative like-for-like (LFL) growth in Q3FY26, and lower net additions through most of the year. HSBC believes this performance provides visibility for sustained expansion in FY27 and beyond, with Zudio's long-term store potential estimated at around 1,500 outlets.
HSBC expects store productivity to stabilise. For FY27, it estimates a 4% LFL growth and 2% same-store sales growth (SSSG) for Zudio, compared with a sharp contraction in FY26. The brokerage said initiatives such as expansion into adjacent categories including beauty, innerwear and footwear could support recovery, though competition especially in the top 20 cities that contribute around 60% of Zudio's revenues remains a key risk.
Forecasting to March 2028 estimated Earnings Per Share (EPS) of Rs 74, the brokerage arrived at the revised target price, while reiterating that risk-reward remains favourable.
Trent Share Price Today
Trent Share Price Today
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Shares of Trent Ltd., rose as much as 2.89% on Thursday with the stock trading Rs 4,082.90 at 11:05 a.m. This compares to a 0.38% rise in the NSE Nifty 50 Index. It has dropped 18.79% in the last 12 months and 4.50% year-to-date. Total traded volume so far in the day stood at 1.13 times its 30-day average. The relative strength index was at 58.13.
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