Trent India Limited is attractive for mid to long-term investment because it combines strong financial performance, aggressive growth plans (especially through Zudio), a diversified retail portfolio, and solid backing from the Tata Group. The company is positioned well to capitalize on the growing Indian retail market, with positive analyst outlooks and significant upside potential in share price. Risks include competition in grocery formats and valuation sensitivity, but overall, Trent offers a compelling growth story with robust fundamentals for investors looking at a 3-5 year horizon or longer
Trent India Limited is considered a lucrative stock for mid-term to long-term investment due to several strong fundamentals and growth prospects:
1. Robust Revenue and Profit Growth
Trent has demonstrated impressive financial performance with annual revenue surging by about 82% in the last year and quarterly revenue growing 50% year-over-year, significantly outperforming sector averages.
Quarterly net profit rose by over 124% year-over-year, indicating strong profitability and operational efficiency.
The company maintains a healthy Return on Equity (ROE) of around 29-31% and Return on Capital Employed (ROCE) of about 21-42%, reflecting effective capital utilization.
2. Strong Growth Prospects and Expansion Plans
Trent aims for a 25%+ annual growth rate over the long term, supported by aggressive store expansion, especially through its fast-fashion brand Zudio, which is rapidly increasing its footprint with over 750 stores and plans to add more.
The fashion and lifestyle segment in India is expected to grow at 10-12% CAGR to ₹18 trillion by 2028, providing a large market opportunity for Trent.
Trent’s diversified retail portfolio, including Westside (semi-premium fashion), Zudio (value fast fashion), and Star Bazaar (grocery), reduces dependence on any single segment and broadens consumer reach.
3. Strong Backing and Brand Value from Tata Group
Being part of the Tata Group, Trent benefits from strong corporate governance, brand reputation, and strategic retail synergies, which enhance investor confidence and operational strength.
4. Positive Analyst Ratings and Target Price Upside
Leading brokerages like Motilal Oswal, Goldman Sachs, HSBC, and Macquarie have given buy or outperform ratings on Trent, with target prices suggesting 16-45% upside from current levels, reflecting strong market confidence in its growth trajectory.
HSBC values Trent’s standalone business at a premium P/E multiple, justified by its higher growth, profitability, and return profile compared to peers.
5. Financial Strength and Low Debt
Trent is virtually debt-free, which lowers financial risk and provides flexibility for expansion and investment.
The company has shown consistent margin improvements and strong EBITDA growth, with a 37% year-on-year jump in EBITDA recently, indicating operational efficiency.
Trent India Limited is considered a lucrative stock for mid-term to long-term investment due to several strong fundamentals and growth prospects:
1. Robust Revenue and Profit Growth
Trent has demonstrated impressive financial performance with annual revenue surging by about 82% in the last year and quarterly revenue growing 50% year-over-year, significantly outperforming sector averages.
Quarterly net profit rose by over 124% year-over-year, indicating strong profitability and operational efficiency.
The company maintains a healthy Return on Equity (ROE) of around 29-31% and Return on Capital Employed (ROCE) of about 21-42%, reflecting effective capital utilization.
2. Strong Growth Prospects and Expansion Plans
Trent aims for a 25%+ annual growth rate over the long term, supported by aggressive store expansion, especially through its fast-fashion brand Zudio, which is rapidly increasing its footprint with over 750 stores and plans to add more.
The fashion and lifestyle segment in India is expected to grow at 10-12% CAGR to ₹18 trillion by 2028, providing a large market opportunity for Trent.
Trent’s diversified retail portfolio, including Westside (semi-premium fashion), Zudio (value fast fashion), and Star Bazaar (grocery), reduces dependence on any single segment and broadens consumer reach.
3. Strong Backing and Brand Value from Tata Group
Being part of the Tata Group, Trent benefits from strong corporate governance, brand reputation, and strategic retail synergies, which enhance investor confidence and operational strength.
4. Positive Analyst Ratings and Target Price Upside
Leading brokerages like Motilal Oswal, Goldman Sachs, HSBC, and Macquarie have given buy or outperform ratings on Trent, with target prices suggesting 16-45% upside from current levels, reflecting strong market confidence in its growth trajectory.
HSBC values Trent’s standalone business at a premium P/E multiple, justified by its higher growth, profitability, and return profile compared to peers.
5. Financial Strength and Low Debt
Trent is virtually debt-free, which lowers financial risk and provides flexibility for expansion and investment.
The company has shown consistent margin improvements and strong EBITDA growth, with a 37% year-on-year jump in EBITDA recently, indicating operational efficiency.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.