Trent shares: RK Damani takes a Rs 310 cr blow as Tata Group stock tanks 11%; check targets

Seasoned Dalal Street investor Radhakishan Damani took a hit of more than Rs 310 crore in Trent shares plunged 11 per cent during the trading session. The sharp correction in the stock price saw the value of his stake eroding by Rs 311.64 crore to Rs 2,476.82 crore from Rs 2,788.46 as per its previous close.

RK Damani, through his investment arm Derive Trading and Resorts, owned 45,07,407 equity shares, or 1.27 per cent stake in Trent as of March 31, 2025. However, the Tata Group-backed speciality retail player is yet to disclose its shareholding pattern for June 2025 quarter (Q1FY26).

Shares of Trent Ltd tanked as much as 11 per cent during the trading session on Friday to Rs 5,495, with its market capitalization slipping below Rs 2 lakh crore mark. The stock may correct further once the 15-minute circuit filter ends. The stock is down over 34 per cent from its 52-week high at Rs 8,345.85, hit in October 2024.

The latest round weakness is seen after weak commentary by the company management in its annual general meeting (AGM) yesterday, where it highlighted growth concerns in the near term. Management indicated Q1FY26 growth is seen around 20 per cent in core fashion business, lower than the 5-year CAGR of 35 per cent.

The management reaffirmed its aspiration of 25 per cent plus growth for the coming few years, but the current run rate falls short of it. Adjusting for the current run rate, Nuvama Institutional Equities has cut FY26E/27E revenue by -5 per cent/-6 per cent and Ebitda by -9 per cent/-12 per cent.

"Pickup in Zudio Beauty and the Star business can become the next big growth levers, but we believe these businesses need to stabilise before scaling up. Slowdown in growth forces our hand to downgrade Trent to ‘hold’ with a revised target of Rs 5,884," it added.

HDFC Securities prefers focusing on assessing whether it is nearing peak operating performance across its portfolio. "We suspect Westside is showing signs of customer fatigue, Zudio’s efficiency is optimal, and success in Star is not a cinch. We will double-click on each in a bit," it said.

HDFC Securities built in 23 per cent revenue and PBT CAGR over FY25-27 (8-10 per cent lower than consensus). "We maintain SELL on Trent with an SOTP-based target of Rs 4,300 per shares," it added in its report launched about a week ago.

However, Elara Capital expects stable Ebitda margin with high single digit in Q1FY26. Gross margin may rise by 117 bps QoQ to 43.8 per cent post aberration in Q4, but Ebitda margin may remain stable YoY at 15.3 per cent (a drop of 64bps QoQ on seasonally high rental cost," it said with a 'buy' rating with a target price of Rs 8,300 on the stock.