Trent stock jumps 2%, emerges as one of top Nifty gainers on bullish brokerage calls: Here's what analysts say

Mumbai, June 18, 2025 — Trent Ltd., the retail arm of the Tata Group, saw its stock surge over 2% in intraday trading on Tuesday, emerging as one of the top gainers on the Nifty 50 index. The rally came on the back of a slew of bullish calls from leading brokerages, buoyed by the company’s strong financial performance, expanding retail footprint, and robust consumer sentiment.

The stock touched an intraday high of ₹4,780 on the NSE, up from its previous close of ₹4,685, before settling slightly lower by market close. With this upmove, Trent has now gained nearly 12% in June so far, significantly outperforming the Nifty Retail index and broader market.

Brokerages Turn Bullish on Trent’s Long-Term Growth Story

Multiple brokerages issued optimistic reports this week, citing Trent’s aggressive store expansion strategy, sustained same-store sales growth, and strong brand equity through Westside, Zudio, and Star Bazaar.

Jefferies India raised its target price on Trent to ₹5,100, maintaining a “Buy” rating. “Trent continues to demonstrate consistent outperformance in India’s evolving retail landscape. The company’s scalable business model, asset-light expansion, and superior unit economics set it apart,” the note stated.

Morgan Stanley echoed similar sentiments, upgrading the stock to “Overweight” with a target price of ₹5,200. The firm noted that Trent’s omnichannel integration and strong supply chain are key enablers for margin improvement and long-term growth.

ICICI Securities, in its latest coverage, highlighted Trent’s impressive store addition pace. “With more than 300 Zudio outlets and rapid growth in Tier-II and Tier-III cities, Trent is capturing aspirational demand from India’s growing middle class,” the report said.

Market Context: Retail Sector in an Uptrend

Trent’s rally comes amidst renewed optimism in India’s consumer discretionary sector. Retail stocks have been on the radar of investors following a strong Q4FY25 earnings season, where several listed players, including Trent, reported double-digit revenue and profit growth.

India’s retail sector is benefiting from rising urbanization, digital penetration, and a consumption rebound post-pandemic. The increasing adoption of branded apparel in smaller cities and higher discretionary spending have created fertile ground for retail-focused companies.

In its Q4 results, Trent reported a 51% YoY rise in consolidated net profit at ₹272 crore, with revenues up 41% to ₹3,235 crore. Zudio’s performance stood out, with management highlighting that the format now contributes nearly 45% of total revenues.

Analysts See Room for Further Upside

Analysts believe that despite its premium valuation, Trent remains one of the most attractive plays in the Indian retail segment due to its execution capability and brand-led growth.

“Trent has struck the right balance between affordability and aspirational appeal,” said Ravi Singhania, senior analyst at Motilal Oswal. “While some investors may be cautious due to valuation multiples, the company’s scalability and market positioning support further upside.”

Sakshi Desai, retail sector strategist at Axis Capital, added: “Trent’s consistent performance, lean inventory model, and strong consumer connect through Zudio give it a structural advantage over peers.”

Investor Outlook: Momentum Continues

With momentum building and fundamentals backing the rally, market participants are showing increased interest in Trent as a long-term portfolio stock. The recent price action also aligns with strong institutional inflows into consumption-centric stocks.

However, analysts caution that any weakness in discretionary spending, inflationary headwinds, or slower-than-expected store additions could dampen sentiment. Valuation comfort, they argue, hinges on continued high growth.

For investors with a long-term horizon, Trent remains a compelling story riding on India's demographic dividend, premiumization trend, and organized retail growth.

Trent’s recent stock performance and upbeat analyst sentiment reflect its solid fundamentals and strategic agility. As the company continues its aggressive retail expansion, especially in underserved markets, investor confidence seems poised to grow further. While short-term volatility may persist, the broader consensus among brokerages is that Trent is well-positioned to deliver sustained shareholder value in the years ahead.