Trent’s share price is seeing some intra-day relief ahead of its earnings after the massive 6% plus cut seen in trade on Tuesday- February 4. The stock was under pressure after Reliance Retail relaunched the Chinese brand Shein. This was mainly due to concerns about competition as the app for the Chinese brand, Shein, clocked over 10,000 downloads as soon as it went live on Google Stores.

The Trent share price had seen smart gains on Budget day after Finance Minister Nirmala Sitharaman’s income tax announcements sparked a rally in consumption-themed plays. However, over the last 1-month time frame, the share price of Trent is down nearly 17%. Many market observers and brokerage houses see opportunities in the stock over the long term.

Trent share price Vs Nifty

A close analysis of the Trent share price indicates that the stock is down over 17% in 2025 so far. However, in a 6-month time frame, Trent is up nearly 10% and delivered over 93% returns to investors over 1 year. In the same period, the Nifty has delivered 9% gains in the last 1 year. Nifty’s 6-month returns are in the red zone, down 1%.

Trent share price: Expert views

The big question therefore is what’s the right investment approach for Trent, given the share price trajectory. Deven Choksey, Managing Director of DRChoksey FinServ is upbeat on the fundamentals but considers the valuations a tad higher. According to him, “Trent is a good company with strong fundamentals and growth opportunities. However, its current share price has a discounted forward premium much in advance. Retail business is competitive, and paying a premium may require a longer wait. Moderation in valuation is needed.”

He is quite categorical and asks investors to “watch out for moderation in the premium valuation”, of not just Trent but most plays in the retail business space, given the steep competition.

Shein- competition rising in retail space

The relaunch of Shein has no doubt increased competition in the retail space. Along with Trent’s Zudio, Shein is also competing with the likes of Aditya Birla Fashion’s Style Up and Shopper Stop’s Intune. In its current form, Reliance Retail will have Shein’s ownership and control. For now, products from Shein will be delivered to Mumbai, Delhi-NCR and Bengaluru. The company is also set to begin its Pan-India shipping soon.

Trent share price: Axis Securities sees 20% upside

Axis Securities has an Equal-weight rating on Trent’s share price with a target of Rs 7450, indicating a nearly 20% upside from current levels. They expect strong sales growth to continue in the coming quarters, “driven by Trent’s focus on rapid store expansion and ongoing assortment renewal, which should result in increased overall footfall. Additionally, the improvement in the earnings profile across all formats, the reduction in losses at Star Bazaar, and the enhanced traction at the Inditex JV are positive indicators for the company.”

In recent years, Axis Securities added that “Trent has adopted a Trent playbook to Star Business led by the private label is auguring well for the company and is likely to be the key growth driver for the company in coming years. Its geographical expansion in UAE, launching of Zudio Beauty and

the recent initiative of entering into fast-growing LGD Jewellery will be a key growth driver in the long run.” The brokerage house has based a positive stance on Trent over a mid to long-term basis based on these factors.

According to Axis Securities, “With consistent leadership in key metrics like revenue per store and margins, Trent is well-positioned for sustained growth driven by quality offerings and strategic expansion.”

Trent Q2FY25 results

Overall the expectation for Trent’s Q3FY25 is optimistic and the strong performance is seen continuing despite the challenging environment This is after the company clocked revenue growth of 39.6% YoY growth in Q2FY25 at Rs 4,036 crore. Its Q2FY25 EBITDA was up 39% YoY and EBITDA margins were stable at 15.9% last quarter. Trent’s differentiated model, focus on private labels, efficient store economics, and rapid inventory turnaround continue to outperform peers.