Trent stock gets Buy rating from HSBC on Zudio growth potential

Published 20/06/2025, 06:54
Trent stock gets Buy rating from HSBC on Zudio growth potential

Investing.com - HSBC initiated coverage on Trent Ltd (NSE:TREN) (NS:TRENT) with a Buy rating and a price target of INR6,700.00 on Friday.

The investment bank cited the strong growth potential of Trent’s Zudio brand, which has increased its revenue share from 8% in FY19 to 70% in FY25, driven by store additions and increasing productivity.

HSBC noted that Zudio’s revenue per square foot is the highest in apparel retail among listed players in India, positioning the Tata Group fashion retailer for continued expansion.

The bank forecasts Zudio will add more than 200 new stores annually over FY25-28, with potential to reach 1,450 stores in the longer term, up from the current 765 locations.

HSBC projects a 31% revenue CAGR for Zudio over FY25-28, expressing confidence that increasing competition is unlikely to affect Zudio’s market leadership given its strong brand, fashion collection refresh frequency, and store reach.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.