Trent shares recover after sharp fall; analysts weigh in on whether now’s the time to buy
Dubai: Tata Group’s retail powerhouse Trent has been on a rollercoaster ride lately, plunging over 35% from its peak. But now, the stock is showing signs of a rebound, gaining over 1% on Monday and snapping a two-day losing streak.
So, is this the perfect moment to jump in and buy Trent shares while they’re still cheap? Let’s break it down.
Trent owns some of India’s most popular fashion and lifestyle brands — think Westside, Zudio, and Utsa. It also runs big retail chains like Star Bazaar and Zara through joint ventures.
Recently, the company reported a healthy 20% revenue growth for Q1 FY26. Sounds great, right? But here’s the catch: that’s a slowdown from the blazing 35% annual growth it enjoyed over the past five years.
Analysts at Bernstein are still bullish, giving Trent an “Outperform” rating and a target price of Rs 6,500 — nearly 20% upside from current levels. But they warn that short-term volatility is likely as consumer demand wavers. Are you comfortable with some bumps in the road ahead?
At the recent Annual General Meeting, Trent itself lowered expectations, aiming for a steadier 25% growth rate going forward. The days of hyper-growth might be behind us, but the company’s expansion plans remain ambitious — adding 250 new stores annually across all brands.
On the flip side, HSBC recently cut its target price slightly and flagged challenges like rising capital expenditure, supply chain disruptions, and a cautious consumer market. These factors have led to modest cuts in earnings estimates for the next couple of years. So, how much do these headwinds worry you?
For context, Trent’s share price has already fallen over 20% this year, erasing some investor wealth. But sometimes, a dip like this can be a golden opportunity. If you believe in the brand’s strong retail footprint and ability to innovate with fresh fashion lines and affordable private labels, is now the right time to buy the dip?
The bottom line: Trent’s future looks promising but not without risk. Are you ready to take a calculated chance on this Tata Group gem? Or do you wait for clearer signs of a sustained recovery?
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