For the past two days, Trend Ltd’s stock has been on the move, attracting investor interest and market commentary. The buzz began following an analyst meet held by the company, where although no concrete guidance or data was officially shared, certain key insights and directional cues sparked excitement among market participants.
Interestingly, despite the analyst meet, there were no specific projections or numbers shared by the management. Yet, major brokerages came out with optimistic targets, showing confidence in the company’s evolving strategy. However, the stock did not react strongly to these targets, likely due to the lack of clarity or detailed disclosures in the meet. It became difficult for the market to predict the short-term movement of the stock as a result.
Still, there were some strategic highlights that stood out. A major shift identified in Trend’s approach is their decision to prioritize market share gain over like-for-like growth or same-store sales growth. The company emphasized that it will now focus more on where new stores are being opened, with a heavy emphasis on location. This clearly signals a move to strengthen presence in strategically chosen areas rather than relying only on historical performance metrics.
In line with this new direction, the company seems ready to revamp its older strategies. It will avoid entering segments where repeat purchases are unlikely and will instead strengthen its positioning in areas where brand loyalty and recurring sales can be fostered. This transition from a traditional retail mindset to a branded business model has drawn appreciation from brokerages.
Aspirationally, Trend has indicated a long-term revenue growth target in the range of 25 to 30 percent. While this isn't a formal forecast, it is seen as a reflection of management’s confidence in the potential scale-up of their business. The focus will also remain on in-house brand strategies, with little interest in third-party distribution models.
Several new categories are expected to be explored further. The company is placing renewed emphasis on segments such as beauty, innerwear, and footwear — with Zudio emerging as a major growth driver. Brokerages have highlighted this focus, with Zudio continuing to lead Trend's retail expansion.
There are other emerging categories like Samoh, Judio, and beauty verticals. Currently, these are neither loss-making nor significantly profitable, but their presence adds to Trend’s long-term brand-building strategy. The company aims to scale these with time.
Despite the buzz, the market observed range-bound movement in the stock following a strong opening. This aligns with the overall market tone and suggests investors are still digesting the long-term implications of the company’s evolving strategy.
Adding another perspective, a retail channel check brought out some interesting points. One expert noted that while Judio may be overhyped, Westside — one of Trend’s core offerings — remains underrated. He observed that new store openings, like the massive showroom in Rajouri Garden, Delhi, showcase the brand's expanding footprint. The design and scale of these outlets reflect Trend’s ambition to dominate premium urban retail spaces.
The channel check also highlighted that Trend understands consumer needs deeply, particularly in segments catering to women, which contributes to their brand loyalty. There was also a suggestion that Trend’s footwear segment is emerging as a serious competitor to Bata, offering products at more affordable prices.
However, certain operational issues were noted, particularly regarding customer service in clothing sections. While the cosmetics team was praised for their sales skills, the same enthusiasm was missing in the apparel sections. Improving overall staff training and customer service could further accelerate sales growth.
In conclusion, while the analyst meet may not have delivered solid numbers, the strategic direction hinted at Trend’s ambitions to scale, diversify, and strengthen its brand presence. With aspirations for substantial revenue growth, a focus on market share, and a clear vision for future categories, Trend Ltd appears poised for long-term transformation — provided execution keeps pace with ambition.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investors must do their own research or consult a financial advisor before making investment decisions.
