19 Jun , 2025 By : Debdeep Gupta
Trent share price: Macquarie expressed caution over Trent’s Star grocery format, citing intensifying competition from quick commerce players and the historically weak performance of private label brands in the segment.
Shares of Trent Ltd slipped 1 percent to Rs 5,693 on June 19, even as global brokerage expressed confidence in the Tata Group firm’s long-term growth trajectory. Macquarie has pegged a target price of Rs 7,200, suggesting a potential upside of 25.5 percent from the last close of Rs 5,735.
The brokerage retained its ‘Outperform’ rating, citing the company’s ambitious plans to clock 25 percent annual sales growth over the next decade through new store openings, entry into adjacent categories, and tighter cost controls.
However, Macquarie remained cautious on Trent’s Star grocery format, pointing to rising competition from quick commerce platforms and the limited track record of private label success in the segment. On the fashion front, the firm believes investments in supply chain technology could strengthen Trent’s lead over competitors.
Separately, Morgan Stanley has reaffirmed its ‘Overweight’ view on the stock on June 18. The brokerage noted the management’s continued confidence in achieving its 10x growth goal by FY32, balancing expansion with profitability. The company's plan to expand store count by 200 per year is possibly doable while ensuring quality, economics and location, the report quoted the brokerage as saying. It added that Trent's new stores reach very high throughput within 12-24 months of opening.
The bullish sentiment follows a solid Q4 performance. Trent posted a 37 percent year-on-year jump in EBITDA to Rs 656 crore, well ahead of market expectations of Rs 580 crore. Margins also improved to 16 percent.
At about 10 am, shares of the company were trading at Rs 5,714, lower by 0.5 percent from the last close on the NSE. Trent shares haven't had the best year, down about 20 percent since the beginning of 2025.
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