Today, we recommend two stocks, one from the retail sector and another from the consumer durable (jewellery) sector, as recommended by the Trade Brains Portal, for a potential upside of more than 23%. India ranks as the fifth-largest retail market globally, with the sector poised for strong expansion driven by higher purchasing power, rapid urbanization, growing rural connectivity, and rising consumer expenditure.
Meanwhile, the country’s jewellery market, valued at USD 89.65 billion in 2024, is projected to reach USD 124.7 billion by 2030, and is expected to grow at a steady CAGR of 6.3% from 2025 to 2033. The surge will primarily stem from increased demand for gold jewellery, a wealthier population, and stronger fashion consciousness. We also analyzed the market’s performance on Monday to understand what may lie ahead for the stock indices in the coming days.
- Current price: Rs 4,796
- Target price: Rs 5,750
- Upside: 19.9%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s recommended
Trent Limited, established in 1998 and part of the Tata Group, operates a broad retail network of 1,101 stores across 242 cities, including international locations with two stores in Dubai and three elsewhere in the UAE. The company’s major brands include Westside, a leading fashion retailer with 261 stores in 86 cities, Zudio, a fast-growing value fashion brand with 806 stores across 235 cities, and 34 stores across other lifestyle concepts. Trent Hypermarket (Star), a chain of 77 stores, caters to food and daily essentials. Collectively, these brands cater to over 18 million members of the WestStyle Club, offering a diverse range of fashion and lifestyle products across various customer segments.
In Q1 FY26, Trent Limited recorded revenue of Rs 4,883.5 crore, marking a 19% year-on-year increase from Rs 4,104.4 crore in Q1 FY25. Operating EBIT rose by 21% YoY to Rs 547 crore, while profit after tax grew by 8.5% to Rs 424.7 crore. During Q2 FY26, the company continued its store expansion strategy, growing its Westside store count to 261, up from 248 in Q1 FY26.
The number of Star stores increased to 77 from 72 YoY. Zudio maintained its strong growth trajectory, expanding to 806 stores from 766 in Q1 FY26. Trent also added new locations, opening 4 Westside stores in Mumbai, Dehradun, Lucknow, and Vijayawada, and launched 6 new Zudio outlets in Ghaziabad, Thrissur, Chennai, Nagpur, Pune, and Delhi.
Trent Limited’s Star business continued to expand steadily, reaching a total of 77 stores with the addition of 2 new outlets in Q1 FY26. For Q2 FY26, the company reported standalone revenue of Rs 5,002 crore, reflecting a 17% year-on-year growth from Rs 4,260 crore in Q2 FY25. During the quarter, 13 new Westside stores and 40 new Zudio stores were launched, further strengthening Trent’s retail footprint.
India’s retail market, currently valued at Rs 89 lakh crore in 2025, is projected to more than double to Rs 190 lakh crore by 2034. The fashion and lifestyle segment, a key focus area for Trent, is valued at Rs 13 lakh crore in 2025 and is expected to grow to Rs 18 lakh crore by 2028, registering a 10-12% CAGR.
Risk factors
Several company-owned and joint venture non-apparel formats continue to record losses. The firm faces intense competition arising from its presence in the unorganized segment, alongside established organized players in both offline and online retail channels. Moreover, it remains vulnerable to a decline in discretionary spending, which could lead to reduced sales and potential inventory losses.
- Current price: Rs 506
- Target price: Rs 620
- Upside: 22.5%
- Time frame: 12 Months
To view the report for the stock mentioned above or explore other stock recommendations, click here
Why it’s Recommended
Kalyan Jewellers is an established jewelry retailer in India with 7% market share in the organized jewelry sector and a market presence for more than three decades. Kalyan Jewellers is among India’s most trusted jewellery brands, rooted in a 100-year legacy in retailing, having showrooms in 23 states and Union Territories. It has a diverse offering with many brands under its portfolio, catering to different audiences. Its brand “Muhurat” is catered to wedding customers, “Mudhra & Rang” is catered to mid to high-end customers.
As of June 30, 2025, the company had 368 stores in India, with 8,83,200+ sq. ft of showroom aggregate retail space, which has been growing at a 20% CAGR since FY22. Moreover, it has expanded its showroom in India at a 31% CAGR since FY22, including 287 Kalyan stores and 81 Candere stores, the lightweight/affordable jewelry brand of the Group, as of Q1FY26. Apart from India, it has 36 showrooms in the Middle East and 2 showrooms in the USA.
As of Q1 FY26, the company reported revenue from operations of Rs 7,268.50 crore, representing a 31% increase YoY compared to Rs 5,572.80 crore in Q1 FY25. It has been growing at a 31% CAGR since FY21. This growth was driven by SSSG, expansion through the FOCO model, and strong customer additions. It generated PAT of Rs 264.1 crore, registering a growth of 49% YoY, while the PAT has been growing consistently since FY20 at 41% CAGR. India’s business has been growing well, which generated revenue of Rs 6,142.2 crore in Q1FY26, increasing by 31% YoY, whereas PAT grew 55% YoY and stood at Rs 256.5 crore.
South revenue grew by 30% YoY, which stood at Rs 3,116.2 crore in Q1 FY26, whereas non-South revenue stood at Rs 3,026.1 crore and grew by 33% YoY. Middle East revenue has been growing steadily, as Q1FY26 revenue stood at Rs 1,026.5 crore, registering a growth of 27% YoY. Franchised showrooms operating under the FOCO (Franchisee Owned Company Operated) model are significantly accelerating expansion in the Middle East and India in a more capital-efficient, advantageous way and contributing to the total return profile of the company.
According to the latest Q2 update by the company, India operations witnessed revenue growth of approximately 31% YoY, driven primarily by robust wedding demand and a strong start to the festive season. Q2FY26 recorded healthy same-store-sales-growth (SSSG) of approximately 16% YoY. In Q2FY26, international operations recorded revenue growth of approximately 17% YoY, whereas the company has launched 15 Kalyan showrooms in India, 2 showrooms in the Middle East, and 15 Candere showrooms in India.
As of September 30, 2025, the total number of showrooms across India and the Middle East stood at 436 (Kalyan India – 300, Kalyan Middle East – 38, Kalyan USA – 2, Candere – 96). Management gave guidance on opening 446 showrooms in India, 46 showrooms in the Middle East, and 233 Candere showrooms (started as an online business) by 2027. It has also planned to increase its FOCO model showrooms to 471 by 2027.
Risk Factor
Kalyan Jewellers derives a major portion of its revenue from the Indian market, exposing it to domestic economic fluctuations, regulatory adjustments, and gold price volatility. The business is capital-intensive with lengthy inventory cycles, though the company has successfully reduced its inventory days from 232 in FY22 to 162 in FY25 through its FOCO (Franchisee Owns Company Operated) model. Operating in a highly fragmented jewellery market, it faces intense competition from established brands such as Tanishq and Senco Gold, along with numerous unorganized local players. Additionally, fluctuations in global gold prices continue to influence consumer sentiment, inventory valuation, and profitability.
Market Recap 27/10/2025
On Monday, the Nifty 50 started the week on a positive note at 25,843.2, up 48.05 points from its previous close of 25,795.15. The index continued its upward trajectory, hitting an intraday high of 26,005.95 before closing at 25,966.05, up 170.90 points (0.66%), near the 26,000 mark. The Nifty stayed above all major moving averages (20/50/100/200-day EMAs), reflecting strong underlying technical support.
The BSE Sensex followed a similar trajectory, opening higher at 84,297.39 (up 85.51 points from the previous close of 84,211.88), sustaining above the 84,500 mark and eventually settling at 84,778.84, up 566.96 points (0.67%). Both benchmarks ended the day in positive territory, with RSI values above the overbought zone (over 70), 71.49 for Nifty 50 and 71.36 for Sensex. The Bank Nifty also closed with gains of 414.65 points (0.72%) at 58,114.25. The indices finished in the green, supported by positive quarterly results, easing US-China trade tensions, and softer-than-expected US inflation data, which strengthened expectations of a US Federal Reserve rate cut.
Among sectoral indices, most ended in the green except for a few losers. The Nifty PSU Bank Index was the top performer, rising 2.22% (173.25 points) to 7,990.65, driven by strong gains in Bank of India, Bank of Baroda, Canara Bank, and Punjab National Bank, which advanced up to 4.34%. The Nifty Oil & Gas Index also added 1.52% (176.15 points) to 11,800.20, led by Bharat Petroleum Corporation Ltd, Hindustan Petroleum Corporation Ltd, Indian Oil Corporation Ltd, and Aegis Logistics Ltd, all up about 3.80%. The Nifty Realty Index also ended higher at 954.65 (+1.46%), supported by Brigade Enterprises Ltd (+3.54%), along with modest gains in Sobha Ltd, Anant Raj, and Oberoi Realty Ltd (up to 2.23%).
On the downside, the Nifty Media Index was the biggest laggard, falling 0.26% (-3.95 points) to 1,536.15. Zee Entertainment Enterprises Ltd led the declines with a 1.56% drop, followed by losses in Nazara Technologies Ltd, Network 18 Media & Investments Ltd, and Saregama India Ltd (down up to 1.47%). The Nifty Pharma Index slipped 0.21% (-46.95 points) to 22,310.40, dragged by Wockhardt Ltd, Divis Laboratories Ltd, Alkem Laboratories Ltd, and Gland Pharma Ltd, which fell as much as 2.85%. The Nifty CPSE Index also closed lower by 0.05% (-3.50 points) at 6,611.95.
In the broader Asian markets, sentiment was mostly positive. Japan’s Nikkei 225 surged 2.28% (+1,148.35 points) to 50,448, Hong Kong’s Hang Seng advanced 1.01% (+266.85) to 26,427, China’s Shanghai Composite climbed 1.17% (+46.63) to 3,996.94, and South Korea’s KOSPI surged 2.50% (+101.24) to 4,042.83. As of 4:49 p.m. IST, U.S. Dow Jones Futures were up 0.52% (+247.39 points) at 47,458.49.
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