Tue Oct 08 11:31:33 UTC 2024: ## Trent Ltd Soars on New Ventures and Positive Brokerage Calls

**Mumbai, India** – Shares of Trent Ltd, the Tata Group’s retail subsidiary, surged by 7% in early trading on Tuesday, hitting a record high of Rs 7,955. The rally was fueled by international brokerage Morgan Stanley’s reaffirmed ‘overweight’ call on the company, coupled with the launch of two exciting new ventures.

Trent’s impressive performance comes on the heels of its new standalone store format, **Zudio Beauty**, which marks its entry into the mass-priced beauty market. This move places Zudio Beauty in direct competition with established players like Hindustan Unilever’s Elle18 and Sugar Cosmetics.

Further boosting investor confidence, Trent also launched **Pome**, a new lab-grown diamond jewelry brand, in select Westside stores across Mumbai, Bengaluru, Hyderabad and Gurgaon. Positioned as the “Zudio of the jewelry segment,” Pome is targeting the “diamonds for all” market with competitive pricing.

Domestic brokerage firm Kotak Equities highlights the attractive pricing of Pome, with a 1-carat solitaire engagement ring priced at Rs 24,000-29,000. This strategy, coupled with strong retail economics, is expected to make Pome a formidable competitor in the jewelry market.

Morgan Stanley’s price target for Trent stands at Rs 8,032 per share, while Citi, which initiated coverage on the stock in September, has assigned a ‘buy’ call with a price target of Rs 9,250. Citi has included Trent in its Pan-Asia high-conviction focus list.

Trent’s stock has delivered impressive returns, rising 444% in two years, 281% in a year, and 615% in three years.

Analysts attribute this strong performance to the company’s multi-format approach, which includes Westside, Zudio, and the recently revitalized Star Bazaar. Trent is leveraging its expertise and insights from these ventures to successfully scale its other pilot projects like MISBU, Samoh, and its joint venture with MAS.

With its strong track record, diverse portfolio, and aggressive expansion strategy, Trent is poised to continue its impressive growth trajectory in the Indian retail market.

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