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Elara Capital sees upside in Trent; flags concerns on Jubilant FoodWorksKaran Taurani, EVP at Elara Capital, says Nykaa continues to deliver steady 20%+ growth in beauty, but high valuations limit upside, with margins and competition remaining key factors to watchBy Mangalam Maloo   |  Reema Tendulkar  April 7, 2026, 10:28:24 AM IST (Published)3 Min ReadThe latest set of business updates from retail companies paints a mixed picture for investors, with strong store expansion driving optimism for some players, while others continue to struggle with near-term challenges.

Jubilant FoodWorks was the biggest disappointment this quarter, with like-for-like growth coming in far below expectations. “Jubilant is a big negative surprise specifically on like-for-like (LFL),” said Karan Taurani of Elara Capital.

The company’s heavy dependence on LPG-based outlets appears to have weighed on performance, especially at a time when peers in the quick service restaurant space have reported better demand trends.

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The concern is not just limited to one quarter. Taurani believes the pressure could extend into the near term, with inflation in key inputs and operational challenges likely to impact margins.

He indicated that growth could slip into negative territory in the coming months, while earnings estimates may see further downgrades if the trend continues. For now, the stock faces a tough road ahead unless there is a clear improvement in demand and cost pressures ease.

On the other hand, Avenue Supermarts (DMart) and Trent have delivered steady updates, largely supported by aggressive store additions. DMart, in particular, has reported one of its strongest expansion phases in recent years, which gives better visibility for growth over the next couple of years. This could push revenue growth closer to the high-teens range, compared to its earlier trajectory.

However, much of this optimism seems to be already reflected in the stock price. Taurani noted that valuation multiples have expanded sharply in recent sessions, leaving limited room for further upside unless there is a meaningful improvement in margins or same-store sales growth.

Trent appears relatively better placed within the retail pack. Strong store additions across formats like Westside and Zudio are expected to support growth, while valuations remain more reasonable compared to peers.

“These two provide some bit of cushion to Trent’s growth rate over the next two years, because the growth rates were pegged in the range of 17 to 20% as per estimates, and our estimates are 21% as far as revenue growth is concerned,” Taurani said, adding that steady growth and stable margins could still drive some upside from current levels.

FSN E-Commerce Ventures (Nykaa) continues to stand out for its consistent growth, particularly in the beauty and personal care segment, where it has maintained over 20% growth.

While quick commerce has created some pressure on margins in recent years, the company has largely managed to defend its market position. Its strategy of investing in private labels and expanding distribution beyond its own platform is also beginning to pay off.

“Premium valuations for Nykaa are very much there right now. We have an ‘accumulate’ rating on the stock with a target price of ₹270,” Taurani added.

That said, valuations remain expensive, limiting near-term upside for the stock. Future triggers would largely depend on margin recovery and how effectively the company navigates competitive pressures.

Live stock market updates—follow our blogContinue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.(Edited by : Unnikrishnan)TagsElara CapitalJubilant FoodworksMarket analystsMarket OutlookNykaaTrent