Tata Group’s retail arm, Trent, has been on a downtrend since the management warned of a slowdown in growth during their annual general meeting (AGM) last week.
Brokerage firm Nuvama downgraded the stock and reduced its target price to ₹5,884, citing concerns that the current growth trajectory does not support its high valuation.
Trent’s shares have slumped 13.4% in the past week and traded over 1% lower at ₹5,352.50 on Friday.
Management projected first-quarter (Q1 FY26) revenue growth of about 20%, which is lower than the 35% compound annual growth rate (CAGR) of the last five years, as well as their previous targets of maintaining over 25% growth in the coming years.
On the technical charts, Trent’s immediate trend remains weak. The stock has edged below the ₹5,400 support level it held for the past three sessions.
If the stock manages to sustain above ₹5,400, it may attempt a recovery toward its 50-day and 55-day moving averages, both of which are near the ₹5,650 mark, said SEBI-registered analyst Deepak Pal.
The analyst identifies short-term opportunities near current levels, with a stop loss at ₹5,300. Upside targets in the near term could be ₹5,650 to ₹5,700, a 6.5% upside to current levels.
Despite trading at a high P/E of 124×, the company’s long-term growth story stays intact, especially if revenue picks up and segments like Zudio Beauty gain momentum, he added.
Retail sentiment remained ‘bullish’ on Stocktwits, amid ‘high’ message volumes.
Year-to-day (YTD), the stock has lost a quarter of its value.
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