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.

Tata-owned Trent is sharpening its focus on store portfolio growth and optimization as India's largest fashion retailer by market value positions itself for gradual consumer sentiment recovery. CEO P Venkatesalu has outlined a strategic approach emphasizing selective density increases across key markets while maintaining the company's aggressive expansion momentum.

Strategic Market Approach

The company plans to continue adding new outlets in areas where it already maintains presence in major cities, while simultaneously expanding into smaller markets. This dual approach reflects Trent's confidence in both mature and emerging market opportunities.

"Consumer sentiment today is neither euphoric nor despondent. It is gradually improving. Outlook over the medium term is positive," Venkatesalu explained. The strategy focuses on pursuing growing reach and share of revenues through selective density increases across key markets with improving customer propositions.

Expansion Track Record

Trent has executed one of the fastest expansion drives by any retailer in India, with impressive results across its portfolio:

The company's approach mirrors successful international retailers including Spain's Inditex (Zara owner) and British chain Primark, which prioritize dense store networks in high-footfall catchments to leverage scale for enhanced bargaining power with vendors and real estate developers.

Stock Performance and Market Position

Despite operational expansion success, Trent's stock has experienced significant volatility:

Competitive Landscape Challenges

The value retailing segment where Zudio operates faces intensifying competition from major players including Reliance, Shoppers Stop, and Aditya Birla Fashion & Retail. Additionally, Chinese fast fashion brand Shein's re-entry into India through Reliance Retail after a five-year ban has created additional competitive pressure.

The clothing and lifestyle products sector has experienced demand slowdown persisting for two years, creating operational challenges for retailers operating on tight margins.

Organizational Philosophy

Venkatesalu emphasized the company's cultural focus on building a nimble, agile organization capable of quick adaptation and grassroots signal recognition. "We have a mix of home-grown and expatriate talent, but culturally, we remain focused on building a nimble, agile organisation—one that can adapt quickly, listen closely to grassroots signals and take calculated risks," he stated.

The CEO acknowledged that scale brings both complexities and advantages as the organization grows, with store density reducing last-mile costs and enabling faster stocking and response to local fashion trends—critical factors as growth moderates.

"Progress is rarely linear. We need to keep changing," Venkatesalu concluded, emphasizing that growth opportunities in the consumer space remain exciting despite challenges.