'Buy' Trent Shares Maintains Motilal Oswal, Says Aggressive Expansion To Drive Growth

The brokerage continues to like Trent for its robust footprint additions, strong double-digit growth, long runway for growth in Star (presence in just 10 cities) and potential scale-up of new categories (Beauty, Innerwear, and LGDs). .NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Trent Ltd.'s growth rate has moderated in the last few quarters, though still robust, amid a weak discretionary demand environment. Back-ended strong store additions in Zudio should drive growth in FY26. However, a recovery in same-store sales growth across fashion and Star formats would be a key near-term monitorable. We continue to like Trent for its robust footprint additions, strong double-digit growth, long runway for growth in Star (presence in just 10 cities) and potential scale-up of new categories (Beauty, Innerwear, and LGDs). Our FY26-27 estimates are broadly unchanged. We build in FY25-28E CAGR of ~21%/20%/18% in standalone revenue/Ebitda/PAT, driven by the continuation of robust area additions in Zudio.We assign 54 times Jun'27E EV/Ebitda to the standalone business (Westside and Zudio; a premium over our Retail Universe, given Trent's superior growth), ~3x Jun’27E EV/sales to Star JV, and 6.5x EV/Ebitda to Zara JV to arrive at our revised target price of Rs 6,650 (vs Rs 6,600 earlier).  Adjusting the value of Star and Zara, the stock is trading at 77x Jun’27E PE for the standalone business (vs ~90x LT average 1-year forward PE). We reiterate our BUY rating..Click on the attachment to read the full report:.Globus Spirits Shares Can Rally 55%, Says Dolat Capital As It Initiates Coverage.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

'Buy' Trent Shares Maintains Motilal Oswal, Says Aggressive Expansion To Drive Growth

Trent added 16/220 net Westside/Zudio stores and consolidated four other format stores to cross 1,000+ stores across its fashion formats.

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