Goldman Sachs believes that Zudio seems like a multi-year share gain story with low competitive risk coupled with a market share gain-led growth story.
“Recent moderation due to urban slowdown has been seen, but a recovery can be expected,” said Goldman Sachs in its note.
Zudio’s market share still remains small compared to global leaders but the global brokerage firm expects Zudio to grow at 28% CAGR over FY24-35E to reach Rs 1 lakh crore in sales.
Meanwhile, Westside is likely to continue to deliver steady low double-digit sales growth and the sustainable margins of Trent’s Fashion & Lifestyle business could also be higher as Zudio stores mature.
“Star may have long-term potential, but will not see Zudio-like store growth and will likely face stiff competition from the quick commerce players,” the global brokerage firm’s note added.Also read: Aarti Industries shares tumble 9% as Q2 PAT falls 43% YoY
In the last week, Trent reported its second quarter results for the financial year 2025, wherein its standalone profit rose 46% year-on-year (YoY) to Rs 423.44 crore, higher than ET Now poll estimate of Rs 414 crore.
Trent’s Q2 revenue rose 39.6% YoY to Rs 4,035.56 crore but was below the estimate of Rs 4,320 crore.
In Q2FY25, its fashion segment registered double-digit like-for-like growth. Emerging categories contribute to over 20% of its revenues, like beauty & personal care, innerwear and footwear continued to gain traction with customers.
The shares of Trent have given multibagger returns of 157.5% and 113.6% in the last one year and on a YTD basis respectively, according to the BSE analytics.
The stock was trading 1.7% higher at Rs 6,408.50 on the BSE around 11 am.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)