Tata Group stock to buy now for an upside of 18%; Do you own it?

Synopsis:
Bernstein, a well-known international broking and research house, has given a target as well as guidance on Trent, a Tata Group stock. Let’s see what Bernstein has to say about the company. 

This company, which is engaged in retailing apparel, footwear, accessories, toys, games, food, groceries & non-food products through various of its retail formats/concepts, had received a target along with the company’s guidance, which will be explained in this article. 

With a market cap of Rs 1,50,266 crore, the shares of Trent Ltd closed at Rs 4,227. The shares are trading at a PE of 92.8, whereas the industry PE is 39, and have given a return of 523% over the last 5 years.

Bernstein’s target for Trent and more

Bernstein has kept its outperform rating on Trent but trimmed the target price to Rs 5,000 per share, which is an upside of 18.28% from today’s closing, suggesting that while the firm still believes in Trent’s long-term story, the stock’s sharp run-up has left less room for near-term upside. The positive takeaway is that Bernstein feels Trent’s revenue slowdown has finally bottomed out, and growth should start looking better from here. This is helped by like-for-like sales improving, with split stores turning positive, partly thanks to favorable base effects.

A major reason for Bernstein’s continued confidence is the strength of Zudio, which remains Trent’s biggest growth engine. They expect the Zudio network to deliver a strong 20% CAGR over the next three years, driven by rapid store expansion and sustained customer demand in the value-fashion segment. At the same time, the improving consumer environment is supportive for Westside too, with signs of better demand coming back into discretionary categories.

The only big watch-out, according to Bernstein, is rising competition, especially in value retail, where new players are scaling aggressively. Even so, the brokerage is building in a healthy 19% growth for FY26 and a 20% CAGR for FY26–28, showing that they continue to believe Trent can grow faster than the broader market. Overall, the note reads as a balanced but upbeat assessment: the slowdown phase looks behind Trent, and both Zudio and Westside seem set up for a strong multi-year expansion.

Financials and more

The revenue from operations stands at Rs 4,157 crore in Q2 FY25 and Rs 4,818 crore in Q2 FY26, showcasing a YoY growth of about 16%. Along with the sales, the profits also grew from Rs 335 crore in Q2 FY25 to Rs 373 crore in Q2 FY26, which is a growth rate of about 11%. 

Trent’s Star business has maintained a steady product mix from Q2 FY25 to Q2 FY26, with only small shifts across categories like apparel, staples, fresh products, and FMCG. The big highlight is the unchanged 73% own-brand share, showing strong customer trust in Trent’s private labels. With brands like Star, Fabsta, Klio, Skye, Smartele, Zudio, and Shubh Anand, the company continues to lean on in-house products for better quality control, pricing power, and customer loyalty. Overall, the mix reflects a stable, well-balanced shopping pattern and a strong private-label strategy.

Trent is one of India’s most trusted fashion and lifestyle retailers, known for offering stylish, affordable, and high-quality products across its family of brands. The company focuses on creating fresh, customer-centric brands that feel relevant and responsible, making everyday fashion better for a wide audience. 

With a clear focus on value, design, and consistent quality, Trent has built a strong connection with shoppers. Today, it operates over 1,000 stores and serves more than 100 million customers, reflecting its scale and the deep trust it has earned across India.

Written by Leon Mendonca

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Tata Group stock to buy now for an upside of 18%; Do you own it? appeared first on Trade Brains.