Trent Share Price Today: The 11–12% Plunge Explained
Current Market Snapshot
- As of July 4, 2025, Trent’s stock closed around ₹5,450–₹5,460, down roughly 11.9% compared to the previous close near ₹6,190.
- Intraday trading saw a low of roughly ₹5,350 and a high near ₹5,785 .
- Volume spiked to ~7.5 million shares, well above its 20-day average, signaling strong market reaction .
What Triggered the Sharp Drop?
A. Disappointing Q1 FY26 Growth Forecast
At its recent AGM, Trent share price projected revenue growth of just ~20% YoY for Q1 FY26—well below its recent trailing 35% CAGR and even below its target of 25% .
B. Analyst Downgrades
Brokerage firm Nuvama Institutional Equities downgraded Trent from “buy” to “hold”, cut its price target from ₹6,627 to ₹5,884, citing the weaker guidance .
C. High Valuation Pressure
Trent share price trades at a steep P/E of ~125–140, and its P/B around 35–40. A slowdown raises risks of de-rating .
Stock Market Reaction
- The stock fell as much as 11–12% intraday, closing near ₹5,456
- It became one of the top losers on a flat Nifty 50 session .
- Technical platforms flagged a 200-day moving average crossover typically bearish, with average declines of 3.5% post signal.
Fundamental Underpinnings
A. Strong Q4 FY25 Performance
Last quarter (FY25 Q4), Trent share price delivered impressive results:
- Net profit doubled to ₹318 crore, up ~150% YoY.
- Revenue grew ~28%+; margins ticked up to ~9.3%.
- Zudio brand store additions (200+) acted as growth drivers .
B. Mixed Q1 FY26 Outlook
- Q1 standalone revenue expected to be ₹5,061 crore (+20% YoY)—a slowdown from earlier momentum .
- Store expansion continued with new Westside and Zudio outlets, but same-store sales growth (SSSG) is soft, reflecting maturing outlets .
Analysts’ Take & Technical Indicators
- Nuvama: Downgraded to “Hold”; lower growth forecast prompts target cut .
- IndMoney: Highlights slower guidance and high valuations as concerns .
- StockRadar (ET): Points to possible bottom formation; recommends high‑risk traders consider buying on dips with a near‑term target of ₹6,500 .
Long-Term Outlook
Strengths
- Strong backbone brands: Westside, Zudio, Utsa, Star.
- Dominant store openings—especially Zudio; apt Gen-Z focus .
- Deep pockets, Tata-backed fundamentals.
Challenges Ahead
- Immediate growth slowdown could pressure valuations.
- Margin dilution due to discounting, low-margin formats .
- Competitive retail space and macro headwinds may further slow momentum.
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Investor Guidance
| Investor Type | Potential Actions |
|---|---|
| Long-term Buyer | Monitor dip; consider buy zones near ₹5,300–₹5,400 if confident in brand/play. |
| Short-term Trader | Look for bounce plays, target ₹6,200–₹6,500, as per technical signals. |
| Cautious Holder | Hold tight; watch for repeated downgrades or further guidance from AGM. |
| New Entrant | Prefer waiting until growth stabilizes (e.g., ≥25% YoY) or valuations ease further. |
Key Levels to Watch
- Support: ₹5,250–₹5,350 (today’s intraday low zone).
- Resistance: ₹5,900–₹6,000 (prev close and Nuvama target).
- Longer-term upside: ₹6,500–₹7,000 (if growth rebound or optimism returns).
Conclusion
Trent’s share price sharp 11–12% drop on July 4, 2025 reflected market shock from weaker-than-expected Q1 guidance, exacerbated by high valuation pressures and downgrades. While the structural brand strength and store expansion remain intact, retail momentum is cooling, and investors are taking profits. If Q1 performance improves or macro conditions turn favorable, a rebound to ₹6,500+ is possible. However, until then, prudence and selective entry remain key.