Leading brokerage firm Macquarie has initiated coverage on Trent Ltd with a Buy rating and ambitious target price of ₹4,900, representing potential upside of up to 21% from current market levels. The Tata Group retail company, which operates fashion and lifestyle chains as well as hypermarkets, has attracted positive analyst attention despite recent operational challenges.

Macquarie's Investment Thesis

Macquarie's bullish stance on Trent stems from seven key factors that position the stock as an attractive buying opportunity during current market weakness.

Key Growth Catalysts

The brokerage firm has identified several potential upside drivers that could accelerate Trent's performance beyond base case expectations. These include faster-than-expected recovery in the fashion segment and loss reduction at Star operations, which could reinforce investor confidence and drive earnings growth.

Macquarie particularly emphasizes that current growth moderation reflects temporary demand weakness rather than structural business model issues. The firm expects normalization of factors including weaker consumer demand and operational impacts from store splitting initiatives.

Strong Financial Performance

Trent demonstrated solid financial growth with revenue increasing 15.90% from ₹4,157.00 crore in September 2024 to ₹4,818.00 crore in September 2025. Net profit also expanded from ₹335.00 crore to ₹373.00 crore during the same period.

Operational Scale and Market Presence

As of September 30, 2025, Trent operates an extensive retail network of 1,101 stores across 251 cities, including two international locations in the UAE. The company's total retail area spans 14.70 million square feet, supporting its diverse portfolio of brands including Westside, Zudio, Samoh, and Star Bazaar hypermarkets.

The company has built substantial customer loyalty with over 19 million WestStyle Club members, demonstrating strong brand engagement across its fashion and lifestyle retail chains. This extensive operational footprint positions Trent as a leading player in India's retail market.

Market Performance

Trent shares showed modest gains with the stock rising 0.09% to reach a high of ₹4,060.95 compared to the previous close of ₹4,057.15. The company maintains a market capitalization of ₹1,42,353.18 crore, reflecting its significant presence in the Indian retail sector.

Trent has received an updated research coverage from Macquarie, with the global brokerage firm maintaining its positive stance on the retail chain operator while making adjustments to its price expectations.

Brokerage Recommendation Details

Macquarie has retained its Outperform rating on the stock, indicating continued confidence in the company's business fundamentals and growth prospects. However, the firm has revised its target price to ₹4,900, representing a downward adjustment from previous expectations.

Market Implications

The maintained Outperform rating suggests that Macquarie continues to view Trent favorably relative to its sector peers, despite the target price revision. This combination of sustained positive rating with adjusted price expectations reflects the brokerage's balanced assessment of the company's current market position and valuation metrics.

The target price adjustment to ₹4,900.00 indicates recalibrated expectations while maintaining the overall positive investment thesis on the retail chain operator's prospects.