Goldman goes 'Neutral' on Trent, stock declines 4%

Mumbai: Shares of Trent, Tata Group's fashion retail chain, fell nearly 4% on Thursday after Goldman Sachs downgraded the stock from 'buy' to 'neutral' and cut its price target by 21%, citing concerns over slowing sales and higher-than-expected growth concerns in Zudio stores. The brokerage's new price target of ₹5,500, implies an upside of 6.7% over Thursday's close of ₹5,148.

Zudio, Trent's value fashion chain, has been a key growth engine, expanding aggressively across towns and cities. However, Goldman Sachs said Zudio's performance has missed expectations for two consecutive quarters.

The brokerage has lowered its FY26-28 revenue estimates for Trent by 5-9% and trimmed its earnings per share projections by 8-13%. Zudio continues to outpace the broader apparel market, with FY25 sales expected to grow nearly 60%, it said.


Trent shares have declined 27% in 2025 as against the 4.7% gains in the Sensex.

According to Goldman Sachs, Trent's market share is likely to rise from 1.1% in FY24 to 1.5% in FY25. It said Trent is the fastest-growing company in its consumer discretionary coverage.

Goldman said the stock is likely to remain range-bound in near term until there is evidence of easing cannibalisation pressures. It maintained a positive long-term view, stating Trent's expansion is well-positioned to drive meaningful market share gains in larger towns over time.