Brokerages were mainly positive on Trent after the Tata Group company posted strong results in Q1. 

What Happened: Trent reported a 135% year-on-year increase in net profit to ₹391.21 crore. Its revenue from operations increased 56% year-on-year to ₹4,104.44 crore. The company opened 25 new stores in the quarter which includes 6 Westside and 16 Zudio stores across 12 cities. 

Brokerage Reactions: Nuvama maintained the "buy" call and increased the target price to ₹7,136. The brokerage pointed out that the company posted industry-beating performance with a double-digit same-store sales growth (SSSG) with a 35% retail area addition. The Star Bazaar portfolio registered a 22% SSSG. The brokerage raised revenue estimates for FY25 and FY26 by 6.7% and 20.5% and net profit by 31.1% and 44.2%.

Axis Securities also maintained its “buy” call on the stock, raising the price target to ₹7,000 from ₹4,800. The brokerage said that the company’s June quarter results beat its expectations on revenue and profit. The analysts believe that Trent's overall revenue growth results are excellent and anticipate continued strong performance in the coming quarters.

Motilal Oswal also maintained its “buy” rating with a target price of ₹7,040. The brokerage said that the company continues to report strong performance despite weak consumption reported by other retailers.

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Jefferies maintained "hold" while raising the target price to ₹5,750. The revenue beat expectations with strong margins. The brokerage said the store additions were soft with Westside seeing higher net closure and subpar Zudio addings in the quarter. While the growth momentum remains strong expensive valuation keeps the brokerage on the side, it added.

Morgan Stanley had an "equal weight" call with a target price of ₹4,812. The brokerage pointed out management's guidance that the company will continue to expand and deepen its store presence. The fashion business had double-digit digit like-for-like (LFL) growth with 10% in Q4 and 10% in Q3. The grocery format continued to show improvement in customer traction and sales densities. 

Price Action: Shares of Trent rose 1.14% to ₹6,346.95 on Monday morning. The stock went on to hit a new all-time high of ₹6,434.

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