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Shares of fashion and lifestyle retailer Trent slipped 4% to their day’s low of Rs 4,590 on the NSE on Tuesday, October 7, after investors were left disappointed with the company's lower-than-expected Q2 business update.The Tata Group company reported a 17% year-on-year (YoY) growth in its standalone June quarter revenue to Rs 5,002 crore versus Rs 4,260 crore posted by the company in the year-ago period. The company also opened 40 Zudio and 13 Westside stores in the reported quarter.The half-yearly revenue stood at Rs 10,063 crore in H1FY26 versus Rs 8,488 crore in H1FY25, growing 19% on a year-on-year basis.The company opened a total of 53 stores in the quarter gone by, taking the store portfolio to 261 Westside and 806 Zudio (including 3 in UAE) and 34 stores across other lifestyle concepts as of September 30, 2025, their store portfolio included 261 Westside.Should you buy, sell, or hold?Antique Broking has maintained its Buy rating on Trent with a target price of Rs 7,031. “Most of the newly opened Westside stores became operational in September and are expected to contribute meaningfully to revenues in the coming quarters. Westside’s expansion remains a key focus area, with 13 stores added in the first half compared to an annual addition of 14–18 stores over the past three years. While Trent continues to outperform peers, growth momentum is moderating due to a high base,” the domestic brokerage said. The launch of its new Burnt Toast brand, aimed at Gen-Z consumers, is viewed positively.On September 11, Kotak Institutional Equities dished out a Reduce call on the counter and slashed its FY2026–28 earnings estimates by 3–7%, citing slower same-store sales growth (SSSG) and muted revenue prospects. Kotak said that while the recent GST cut on apparel in the Rs 1,000–2,500 price range is positive, it is unlikely to materially lift Trent’s near-term growth. Westside, which contributes around 35% of standalone revenues, will see some impact, but the company is expected to pass on the benefit to consumers. Zudio, with merchandise largely below Rs 1,000, remains unaffected by the tax change.Q1 PerformanceTrent had reported a 9% YoY growth in its Q1 consolidated net profit to Rs 425 crore compared to Rs 391 crore in the year-ago period. The company's revenue stood at Rs 4,883 crore, up 19% YoY versus Rs 4,104 crore posted in the corresponding quarter of the last financial year. The profit after tax (PAT) was 36% higher on a sequential basis versus Rs 312 crore reported in Q4FY25.At about 9:35 am, shares of the company were trading at Rs 4,680, lower by 2.2% from the last close on the NSE. Trent shares are down 34% since the beginning of the year and trade 43% below its record high of Rs 8,345 it hit on October 14, 2025.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

ET Intelligence Group: LG Electronics India (LGEI), a home appliances and consumer electronics manufacturer, plans to raise ₹11,607 crore through an offer for sale. The promoter stake will fall to 85% after the IPO from 100%. The company's revenue, Ebitda and Ebitda margin are higher than peers. In addition, its return on net worth for FY25 at 37.1% stands out compared with 9-19% for peers. The IPO valuation also looks attractive. Given these factors, investors may consider the IPO with a long-term view.BusinessLG Electronics India, incorporated in 1997 as a wholly owned subsidiary of Korea's LG Electronics, has been a leader in terms of market share by revenue in major home appliances and consumer electronics excluding mobile phones, according to Redseer, a management consultancy. It estimates the Indian consumer durables sector excluding mobile phones to grow 14% annually between CY24 and 29, which augurs well for LGEI.It has manufacturing facilities in Noida and Pune with capacity utilisation of 81% and 73%, respectively. The company is setting up a new manufacturing unit in Andhra Pradesh, which is expected to become operational by FY27, initially focusing on the production of air conditioners and air conditioner compressors, followed by the manufacturing of washing machines and refrigerators in the future. It also exports products to 47 countries across Asia, Africa and Europe, as of June 2025. 124350913FinancialsThe company's revenue and net profit grew 10.8% and 28% annually between FY23 and FY25 to ₹24,366.6 crore and ₹2,203.4 crore respectively. The operating margin before depreciation and amortisation (Ebitda margin) increased to 12.8% in FY25 from 9.5% in FY23. The company pays royalty to the parent for the brand name, which has remained below 2% in each of the three years to FY25. Companies typically pay 2-3% royalty to parents.ValuationThe company demands a price-earnings multiple of 35, significantly lower than 48-65 for peers including Whirlpool of India, Havells India, Voltas and Blue Star.