Bernstein Trims Trent Target To Rs 3,500 On Bonus Issue, Backs Westside's 50-Store-A-Year Sprint
Bernstein keeps Outperform on Trent but cuts its target to Rs 3,500 (from Rs 5,000) post bonus issue. It flags Westside accelerating to ~50 stores/year toward a 500-550 count, with 52 additions in FY26 and >55% gross margins reinforcing the growth thesis versus Zudio's ~40%.
What happened
Trent (Westside) · Bernstein cut Trent's target to Rs 3,500 (from Rs 5,000) after a bonus issue while keeping Outperform, citing Westside's accelerated
Key facts
- target cut to Rs 3,500 from Rs 5,000
- ~50 new Westside stores/year
- 52 store additions in FY26
- 500-550 target store count
- FY27 EPS Rs 43.61
- FY28 EPS Rs 53.82
- ~21% 3-yr revenue growth
- Westside gross margin >55%
- Zudio margin ~40%
- 65x FY28 P/E
Why this matters
Trent's dual-format engine—premium Westside at >55% gross margin and value Zudio at ~40%—reinforces a differentiated apparel footprint that reshapes competitive dynamics across India's organized retail landscape.
What to watch
- Quarterly SSSG (same-store-sales growth) trend for Westside vs Zudio
- Blended gross margin trajectory each quarter
- Actual FY26 store-opening run-rate vs 52 target
- Inventory-days and markdown intensity signaling demand softness
- Post-bonus float and retail participation shifts
- Peer brokerages recalibrate price targets to bonus-adjusted share base to avoid optical confusion
- Trent management guides on FY26 capex split between Westside and Zudio at next earnings call
- Supply-chain and store-fitout vendors ramp for 52 Westside additions
- Retail landlords negotiate anchor-tenant terms for high-street/mall slots