Multibagger Tata group stock down 60% from highs, brokerage revise ratings & price targets

Trent shares price: Tata Group-owned retail chain Trent Ltd has been on a free-fall for the last one and a half year as the stock has tanked nearly 60 per cent from its peak. Brokerage firms, on the other hand, remain largely positive on the stock in the long-run, suggesting decent recovery in the stock, much below its previous highs.

To recall, shares of Trent hit its all-time high around Rs 8,225 in October 2024, which dropped to Rs 3,340 on March 23, 2026, falling as much as 60 per cent from its peak. However, the stock settled at Rs 3,478.10 on Wednesday, commanding a total market capitalization little more than Rs 1.23 lakh crore.

Trent’s revenue growth has decelerated over the past few quarters owing to weak LFL amid weak discretionary demand, rising competition in metro/tier 1 markets and its entry into lower-tier markets, which take time to reach desired levels. Despite muted productivity and lower gross margin, cost efficiency measures led to 110 bps operating leverage in 9MFY26, said Motilal Oswal Financial Services Ltd.

"We believe margin expansion would depend on recovery in LFL growth. With Zudio undergoing the consolidation phase, Trent might miss the expectations of 200 net store additions in FY26. After the recent correction, it trades at 32 times FY28E pre-IND AS Ebitda, significantly below its past history. We maintain 'buy rating with a target price of Rs 4,350 (earlier Rs 5,200)," it said.

Mumbai-based Trent is a homegrown retail company, which owns and operates fashion and lifestyle retail formats such as Westside, Zudio and Utsa. It also runs retail chains like Star Bazaar and Zara through joint ventures. In 2024, Trent began operating internationally with the opening of a Zudio store in Dubai.

"We reiterate that Trent may be on the cusp of an SSSG revival, aided by Zudio’s strategic geographic pivot from its maturing core catchments in the South and West to relatively under-explored North and East regions; the lion’s share of the 309 added stores will roll into the SSSG computation FY27 onwards and Westside’s 50 per cent surge in FY25 memberships may also prove to be SSSG-friendly," said HDFC Securities.

Zudio’s expansion has a significant runway, with a steady pace of adding 180–190 stores annually over FY 26-28. It is supported by its presence across 225 districts. In these markets, Zudio already commands over 15 per cent share among value fashion peers, indicating limited competitive alternatives and strong growth potential," it added and upgraded the stock to buy with a target price of Rs 4,300.

Domestic institutions own 7.64 crore shares or 21.50 per cent stake in Trent as of December 31, 2025, while foreign investors owned 5.55 crore shares 15.62 per cent stake in the company. Retail investors own 5.46 crore shares, or 15.36 per cent stake, in the Tata Group's retail chain. Global investor Siddhartha Yog owns 1.60 equity shares, or 4.53 per cent stake.

Zudio registers relatively better sell-through rates across most apparel categories, underpinned by fresh collections hitting the floor every 1-2 weeks. While there is a small amount of unsold winter inventory remaining, the broader merchandising profile is remarkably fresh. Zudio is operating without any active promotions or discounts, and pricing remains unchanged, said ICICI Securities.

"We model revenue/Ebitda/PAT CAGR of 18 per cent/22 per cent/14 per cent over FY25–28E. We maintain 'ADD' with an unchanged target price of Rs 4,100, as per SoTP valuation. At our target price, the stock trades at 62 times P/E multiple on March 2028E earnings," it added.