Shares of Trent Ltd continued to decline on Tuesday, slipping another 1.72% to ₹4,695 on the NSE, extending their total loss to nearly 7% over the last two sessions. The sustained fall follows the company’s Q2 FY25 business update, which indicated a slower pace of revenue growth compared to both the previous quarter and analysts’ expectations.
In the September quarter, Trent’s standalone revenue grew 17% year-on-year (YoY) to ₹5,002 crore, down from 20% YoY growth in Q1 FY25 and well below street estimates of around 25%. The moderation has raised concerns among investors about a potential cooling in Trent’s retail growth momentum, which had earlier averaged a 35% CAGR over recent years.
Despite adding 261 Westside, 806 Zudio, and 34 other lifestyle stores during the quarter, market sentiment remained cautious, with traders booking profits after the stock’s strong rally earlier this year.
Meanwhile, Morgan Stanley has reiterated its ‘overweight’ rating on Trent but revised its target price down to ₹5,892 per share. The brokerage also maintained an overweight stance on Jubilant FoodWorks with a target of ₹775 per share.
In contrast, Goldman Sachs continues to hold a neutral view on Jubilant FoodWorks with a price target of ₹650, while Macquarie remains ‘underperform’ on the counter with a target of ₹530.
At the time of closing, Trent’s market capitalization stood at around ₹1.68 lakh crore.
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