Trent shares snap two-day fall as Bernstein maintains outperform call; sees 19% upside

Trent shares have fallen over 20 percent since the beginning of the year.

Shares of Tata Group's apparel giant Trent gained over a percent to Rs 5,515 in morning trade on Monday, July 7, snapping its two-day losing streak after Bernstein maintained an Outperform rating on the counter.

With a price target of Rs 6,500, the brokerage implies an upside potential of 19 percent from the last closing price of Rs 5,456 on the NSE. The brokerage noted that the company's Q1 update confirmed a 20 percent year-on-year revenue growth, but believes this should not be seen as the new normal.

Follow our LIVE blog for all the latest market updates

While the medium-to-long-term growth story remains intact, Bernstein cautioned that short-term performance may be more volatile and closely tied to a recovery in consumer demand.

Speaking at its Annual General Meeting, the company indicated that revenue growth for the first quarter of FY26 is expected to be around 20 percent—significantly lower than its five-year CAGR of 35 percent. The update confirmed market fears of a near-term slowdown, even though the long-term outlook remains intact.

Also read: Donald Trump threatens 'ADDITIONAL 10% tariff' for any country aligning with 'Anti-American BRICS'

Trent’s quarterly business update, released later in the day, showed that standalone revenue rose 20 percent year-on-year to Rs 5,061 crore in Q1. While the growth is still robust by industry standards, it marks a clear step down from the breakneck pace seen in recent years.

As of the end of June, Trent’s retail footprint had expanded to 248 Westside outlets, 766 Zudio stores, and 29 locations under other lifestyle concepts.

The company had earlier told analysts that a 25 percent revenue CAGR is a more realistic and sustainable target going forward—suggesting that the days of hyper-growth may be behind it.

The development gains significance after the stock crashed over 11 percent in the previous session.

At about 9:40 am, shares of the company were trading at Rs 5,490, higher by 0.6 percent from the last close on the NSE. Trent shares have fallen over 20 percent since the beginning of the year.