Bernstein cuts Trent target 30% to Rs 3,500 but stays Outperform on Westside's 50-store yearly blueprint
Bernstein slashed Trent's price target to Rs 3,500 from Rs 5,000 (~7% upside) while keeping an Outperform rating, betting on Westside's guidance to add ~50 stores annually toward a 500-550 network. The higher-margin premium format (55%+ gross margin, 40%+ of revenue) is pitched as a second growth engine alongside Zudio, backing ~21% revenue CAGR over 4-5 years.
What happened
Bernstein cut Trent's target price 30% to Rs 3,500 but stayed Outperform, citing Westside's guidance to add ~50 stores annually, positioning the higher-margin
Key facts
- target price Rs 3,500 (from Rs 5,000)
- ~7% upside
- ~50 Westside stores/year
- 52 stores added FY26
- 500-550 target network
- Westside 55%+ gross margin
- Zudio ~40% margin
- Westside 40%+ of revenue
- ~21% revenue CAGR
- PAT raised ~2%
- FY28 multiple 65x from 63x
- 41% stores no direct competition
- 86 net stores FY23-FY26
Why this matters
Trent's dual-engine model—premium Westside alongside value Zudio—frames a self-funded organic expansion story, reducing near-term appetite for large M&A but validating format-based partnership or real-estate scaling plays.
What to watch
- Quarterly Westside SSSG and net store adds vs the ~50/year cadence
- Gross margin sustainability above 55% and premium share of revenue trend
- Zudio same-store growth and any cannibalization signals
- Follow-on broker rating/target revisions and consensus CAGR drift
- Capex intensity and inventory/working-capital cycle updates
- Other sell-side desks likely recalibrate targets toward the Rs 3,500-4,000 band, converging on the reset
- Buy-side scrutiny shifts from headline growth to store-level ROIC and Westside vs Zudio margin split
- Management to reinforce 500-550 store roadmap and premium-mix guidance in next investor communication
- Momentum funds trim on multiple compression; value/GARP names may accumulate near reset floor