Trent shares lose steam in the short term, here's what brokerages say 

Shares of Tata Group firm Trent Ltd have lost steam in the short term. The multibagger stock, rose 368% in two years and climbed 549% in three years, is down 9% in the last one month.   In three months too, the stock has lost 3%. The stock is neither overbought nor oversold on charts with a RSI of 46.2. The multibagger Tata Group stock stands higher than the 5 day, 10 day,  150 day, 200 day but lower than the 20 day, 30 day, 50 day and 100 day moving averages. 

In the current session, the stock was trading on a flat note at Rs 6720.90 against the previous close of Rs 6771.25 on BSE. Market cap of the firm fell to Rs 2.38 lakh crore. The stock has risen 153.79 per cent from its 52-week low of Rs 2645.60 on Novmber 28, 2023. 

Brokerage Bernstein has an outperform rating on Trent  with a price target of Rs 8,100. "Q2FY25 results were a miss, but the story remains intact. The company saw slower store additions, but recovery appears to be underway. There was a positive surprise in the EBITDA margin. SSSG and measured expansion were the key positives. The company highlighted new growth avenues like Westside Pome, Zudio Beauty, and Zudio International,"  said the brokerage. 

 Another global brokerage Goldman Sachs has a buy call on Trent with a Target price of Rs 8,000

Goldman Sachs initiated a buy call on Trent with target price of Rs 8,000. 
"Goldman Sachs expects Zudio to grow at 28% CAGR over FY24-35E to reach  Rs 1 trillion in sales. Westside is likely to continue to deliver steady low double-digit sales growth. Sustainable margins of Trent's Fashion & Lifestyle business could also be higher as Zudio stores mature. Star may have long-term potential, but will not see Zudio-like store growth and will likely face stiff competition from the quick commerce players," said Goldman Sachs.  

Net profit rose 47% to Rs 335 crore in Q2 against Rs 228 crore in the corresponding quarter of the previous fiscal. Revenue climbed 39% to Rs 4157 crore in Q2 against Rs 2982 crore in the corresponding quarter of the previous fiscal. Trent's EBITDA stood at Rs 643 crore, largely in-line with estimates of Rs 675 crore and EBITDA margins too, were mostly in-line with expectations of 15.7% at 15.5%. During the same quarter last year, Trent had reported margins of 15.3%.