Trent shares fall over 4% despite Q4 profit beat; Citi sees 41% potential upside

Shares of Tata Group retail major Trent, after a positive start in Wednesday’s session (April 30, 2025), fell over 4 per cent to the day’s low of Rs 5,152 post the company’s quarterly numbers just before market close. At around 9:43 am, shares traded weak by 3.6 per cent or Rs 193.9 at Rs 5,186.5 apiece on the BSE.

For the March quarter of the fiscal year ended 2024-25, Trent’s standalone net profit declined to Rs 350 crore, beating estimates at Rs 330 crore. The retail arm of the Tata Group posted a net profit of Rs 654 crore in the year-ago period on the back of an exceptional gain to the tune of Rs 543 crore due to the reassessment of lease terms.

Standalone revenue from operations, however, grew from Rs 3,187 crore in Q4FY24 to Rs 4,106.1 crore during the review quarter, marking a 29 per cent on-year. Zee Business research expected Trent to outperform the industry in revenue growth with estimates at Rs 4,344 crore.

Brokerages on Trent post Q4 performance

Morgan Stanley maintains ‘overweight’

Global brokerage Morgan Stanley has maintained an ‘overweight’ rating on the stock with the target at Rs 6,359- implying gains of 18 per cent from the last close. The brokerage highlighted that in the fashion segment, LFL or like-for-like growth was in mid single-digits. It further added that more-than-expected gross margin compression implies some inventory write-offs.

Nevertheless, EBITDA Margin Showed Some Beat. Also, it acknowledged that the profitability miss was about 17 per cent owing to losses from associates.

Citi maintains ‘buy’

Meanwhile, another foreign brokerage Citi has given the most bullish target for the stock at Rs 7,600- implying 41 per cent potential gains with a ‘buy’ call.