Trent shares fall most on Sensex, Nifty post Q2 business updates; more details 

Shares of Tata Group's retail arm Trent Ltd were among the top Sensex and Nifty losers today after the firm announced its Q2 business updates. Global brokerage Morgan Stanley term Q2 update as a notable miss. Revenue growth at 17% came below the estimate of 25% by the brokerage. However, Morgan Stanley maintained its overweight call on the stock and trimmed its price target to Rs 5,892 against Rs 6,359 earlier. 

The FY26-27 revenue target has been trimmed to 8-10% due to weaker growth in the first half of FY26. 

However, the brokerage raised EBITDA margin by 85-95 bps for FY26-27 on the September quarter business update. 

Meawnhile, Trent shares slipped 3.86% to Rs 4590.90 on BSE. Market cap of the firm fell to Rs 1.66 lakh crore.  On Nifty , the retail stock fell 3.92% intra day to Rs 4,590.    

However, the multibagger stock is neither oversold nor overbought on charts, with its RSI at 35. 

The ongoing correction in the short term has sent moving averages  for the stock in the red zone. Trent stock is trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages. 

Trent stock hit a record high of Rs 8,345.85 on October 14, 2024. It has lost 44% since then.

It has seen high volatility in the last one year with a beta of 1.5.  The stock was trading on a flat note in the current session. Trent stock was down just 0.02% to Rs 5446 against the previous close of Rs 5447.90 on BSE. 

Motilal Oswal has a buy call on the retail stock. It sees a 34% upside to the stock. 

"However, Trent’s revenue growth continued to decelerate in 2QFY26 (vs. 57%/40%/37%/29%/20% in the last five quarters), likely due to slowing SSSG (selfcannibalization) and a high base effect, in our view. Trent’s 17% YoY revenue growth is primarily driven by ~33% YoY increase in the store count. Revenue per store declined ~9% YoY, indicating store-level sales cannibalization," said Motilal Oswal. 

Trent on Monday reported its September quarter business update. 

The company’s quarterly update indicated a slight moderation in growth momentum when compared with the June quarter. Brokerage firm Bernstein highlighted a notable slowdown in revenue growth at the start of FY26, with Q1 revenue growth reported at 20%, a substantial drop from the 57% achieved in Q1 FY25.