Macquarie retains Outperform on Trent, sets Rs 3,600 target
Macquarie sees 15.9% implied upside in Trent over 12 months, citing resilient demand, continued store expansion and margin strength. The brokerage also retained Outperform on Marico and named PB Fintech, Avalon Technologies and UNO Minda among its preferred stocks.
What happened
Macquarie retained Outperform ratings on Trent and Marico, citing resilient demand, store expansion, margin strength and category momentum. It set Trent's
Key facts
- Trent target price: Rs 3,600 (15.9% implied upside)
- PB Fintech target price: Rs 1,950 (19.6% implied upside)
- Marico target price: Rs 965 (11.1% implied upside)
- Avalon Technologies target price: Rs 2,050 (15.6% implied upside)
- UNO Minda target price: Rs 1,383 (13.3% implied upside)
- Marico FY27 consolidated sales target: over Rs 150 billion
- Marico FY27 EBITDA growth target: 20%
- PB Fintech expected earnings growth FY26-28: 58%
Why this matters
Trent’s valuation support highlights the strategic premium investors are assigning to scalable store networks and profitable growth in India’s apparel retail market.
What to watch
- Quarterly same-store sales growth remaining strong while gross and EBIT margins hold or improve.
- Store-opening cadence exceeding guidance without a decline in new-store productivity.
- Upward FY earnings estimates or additional target-price upgrades from other brokerages.
- Evidence of sustained consumer demand in apparel, beauty and value retail categories.
- Margin pressure from discounting, higher sourcing costs, inventory build-up or weaker Westside/Zudio sales trends.
- Broader Indian equity risk-off conditions that compress high-growth consumer and retail multiples.
- Track quarterly like-for-like sales growth, revenue growth and EBIT margin against the pace implied by the Rs 3,600 target.
- Monitor net store additions, especially Zudio, alongside new-store maturity curves and sales per square foot.
- Watch management commentary on demand across value and premium formats, inventory levels, markdowns and festive-season trading.
- Compare Trent's valuation and earnings revisions with organized retail peers; relative outperformance may depend more on estimate upgrades than on the rating reaffirmation itself.
- Assess whether rapid expansion raises working-capital needs, occupancy costs or cannibalization risk in dense urban catchments.