Trent Stock Drops 19%, Yet Brokerages Recommend BUY. Q4 Revenue Growth at 28%, 232 New Stores Opened.
Trent: Fears surrounding Trump tariffs and the global trade war caused significant turbulence in Indian stock markets. On Monday, the BSE Sensex and Nifty-50 experienced their sharpest decline since June 4th, 2024. The Sensex plummeted nearly 4000 points, and the Nifty fell over 1000 points at the market open. This market crash impacted Tata Group's multibagger stock, Trent Limited, which slumped by over 19%.
Brokerage Houses' Response Following Q4 Business Update
Motilal Oswal maintained its BUY rating on Trent, setting a target price of ₹6800 per share, approximately 22% above the current price of ₹5561.
Similarly, Antique Stock Broking also recommended buying Trent, with a target price of ₹6801.
Antique believes that while Trent's Q4FY25 revenue growth of 28% was slightly below expectations, the long-term growth outlook remains b. The company opened numerous new stores for Zudio and Westside, the impact of which will be visible in the first quarter of FY26.
Q4FY25 Highlights: Store Expansion and Revenue Growth
Q4FY25 Revenue Growth: 28% YoY
Overall FY25 Revenue Growth: 39% YoY, ₹17,600 crore
Stores Opened in Q4: 13 Westside, 132 Zudio
Total New Stores Opened in FY25: 232, bringing the network to 1043 stores.
Revenue growth slowed in FY25 (39%) compared to FY24 (55%).
Market Impact: Trent's Long-Term Strength Despite Decline
News of Trump tariffs triggered heavy selling in the markets on Monday. Trent's share opened at ₹5005.15, down 10%, and fell intraday by 19% to ₹4491. However, Trent has delivered significant returns to investors in the long term—the stock has yielded over 250% returns in the past two years.
What Should Investors Do?
- Brokerage houses believe Trent's fundamentals are b, and the stock will perform well in the medium to long term.
- Rapid expansion of its store network and stable revenue growth establish it as a b player in the retail segment.
(Disclaimer: This article is for informational purposes only. Consult your financial advisor before making any investment decisions.)
