Rs 162 crore gone in 2 mins! RK Damani takes a blow as Trent shares crash 8%

Trent shares fall: Seasoned value investor of Dalal Street, Radhakishan Damani, took a big blow on Tuesday as Trent shares crumbled more than 8 per cent at the opening tick today. The Tata Group's retail arm was under severe selling pressure on the back of a muted quarterly update for the December 2025 quarter.

According to the data from NSE, shares of Trent Ltd tumbled 8.35 per cent on Tuesday, falling to Rs 4,060 at the opening tick, compared to previous close at Rs 4,429.80 on Monday. The total market capitalization of the company slipped below Rs 1.45 lakh crore for the day.

Radhakishan Damani, who owned 43,98,204 equity shares, or 1.24 per cent stake in Trent through his investment arm Derive Trading And Resorts, saw an erosion of Rs 162.65 crore in his stake. The value of his holding in the company dropped to Rs 1,785.67 crore from Rs 1,948.32 crore within minutes. Trent is yet to file its shareholding pattern for the December 2025 quarter.

Trent reported a 17 per cent YoY rise in Q3 revenue to Rs 5,220 crore, while revenue for the nine months ended December 31 grew 18 per cent YoY to Rs 14,604 crore. The growth was supported by expansion of its Westside and Zudio brands, with the store network scaling up to 854 Zudio outlets, including an international presence across four spots in the UAE.

Over the first nine months of FY26, Trent-backed Westside added a net 30 stores, higher than the average of 16 stores added annually between FY23 and FY25. The Zudio format also exceeded expectations, with 48 net store additions in Q3FY26.

Global brokerage firm Morgan Stanley has maintained an 'Overweight' rating on Trent, with a price target of Rs 5,456 per share. The overseas investment banker said that Q3 standalone revenue growth was largely in line with its estimates, with store additions also broadly tracking expectations.

On the other hand, HDFC Securities recently upgraded the stock to 'add' with a target price of Rs 4,700. It highlighted signs of fatigue in Westside and Zudio’s peak efficiency, which kept us at bay from being constructive on an otherwise top-class franchise. Post a near 50 per cent price correction, it may perhaps be time to pivot as risk-reward turns favourable. 

"We note that store additions typically pick up pace in 4Q, and all eyes would be on further scale-up of Trent’s fashion footprint as it remains the biggest growth driver amid weak SSSG," said Motilal Oswal Financial Services. "A weaker-than-expected number could weigh on the recent stock price recovery as earnings downgrades are likely to continue in the near term," it said.