Trent shares down 8%, take 1-year fall to 41%; retail hit hard; stock worth a buy?

Trent shares plunged over 8 per cent in Tuesday’s trade after the company’s December quarter business update failed to impress analysts. Retail investors held a 14.27 per cent stake in the Tata group firm, which was valued at Rs 20,793 crore after the stock fell 8.32 per cent to an intraday low of Rs 4,060.65 apiece. Small investors took a notional hit of about Rs 1,676 crore on their holdings today compared with the Rs 22,470 crore valuation at Monday’s close. With Today's fall, the scrip is now down 41 per cent in the past one year. 

"Trent’s stock price had run up in the last few days (up 9 per cent since December 19) on expectations of a pick-up in revenue growth. A weaker-than-expected number could weigh on the recent stock price recovery as earnings downgrades are likely to continue in the near term," MOFSL said.  

Trent said its standalone revenue grew 17 per cent YoY to Rs 5220 crore. The retailer saw 48 net new stores of Zudio and 17 net new stores of Westside during Q3, taking the total to 854 and 278 stores, respectively. Antique Stock broking said Westside could be a key focus area for Trent as the company has added 30 stores during 9MFY26 against 14-18 annual additions during the last three years.

"We believe the accelerated store expansion in Westside would contribute to revenue in the coming quarters. In our view, despite moderation in the value fashion category, Trent continues to outperform peers, driven by enhanced store experience and disciplined scaling of operations. However, due to the high base and unfavorable demand conditions, growth trend looks to be moderating," Antique said.

Antique has cut its Ebitda estimates by 3-6 p cent for FY27 and FY28 but maintained positive stance on Trent as it believes the company is well-positioned to navigate the competitive business environment in the medium to long term. 

It suggested a revised target of Rs 5,700 for the stock against Rs 6,650 earlier. 

"Post a near 50 per cent price correction (from peak to trough), it may perhaps be time to pivot as risk-reward turns favourable," HDFC Institutional Equities said. This brokerage has upgraded Trent to an 'ADD' rating with a target price of 4,700 per share. 

Trent remains a top-class franchise, it said adding that a combination of healthy inputs for future operational KPIs (SSSG and store expansion) and a 50 per cent valuation cut underpins its decision to upgrade stock. 

Note: The Trent stock eventually settled the day at Rs 4,055 apiece on NSE, down 8.46 per cent.