Trent shares slumped 19% today; should you buy or wait for further dips?

Shares of Trent Ltd saw a sharp downtick on Monday, sliding 19.23 per cent hit a low of Rs 4,491.75. The stock was last seen trading 16.99 per cent lower at Rs 4,616.40. At this price, it has corrected 34.68 per cent on a year-to-date (YTD) basis.

The company, in its March 2025 quarter business update, said it recorded a standalone revenue of Rs 4,334 crore in (Q4 FY25), up 28 per cent from Rs 3,381 crore in the corresponding period last year. As of March 31, 2025, Trent's store portfolio included 248 Westside, 765 Zudio (including 2 in UAE) and 30 stores across other lifestyle concepts.

An analyst suggested that investors may consider buying the stock on further dips while another said a fall below the Rs 4,500 sub-zone could be devastating.

"The stock has rallied a lot over the past. Given its strong domestic-centric business, one should wait and buy the stock on further dips," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

"Trent has plummeted and the stock has retested the recent swing lows. The overall structure resembles a lower high formation characterised by short-lived bounces. On the lower end, a correction below the Rs 4,500 sub-zone could be devastating from a technical perspective. Conversely, on the higher end, a series of resistance levels are observed in the Rs 5,000-5,500 range for the near term," said Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One.

Technically, the scrip traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 34.99. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The stock has a price-to-equity (P/E) ratio of 87.04 against a price-to-book (P/B) value of 32.26. Earnings per share (EPS) stood at 53.14 with a return on equity (RoE) of 37.06. According to Trendlyne data, Trent has a one-year beta of 1, indicating average volatility.

As of December 2024, promoters held a 37.01 per cent stake in the Tata Group company.