Trent shares came under pressure on Friday, falling 8% in morning trade after Nuvama Institutional Equities downgraded the stock to ‘Hold’ from its earlier rating. The brokerage has also revised its target price to ₹5,884 from ₹6,627, citing concerns over a slower-than-expected growth trajectory. As of 9:15 AM, the shares were trading 7.50% lower at Rs 5,727.50.
According to Nuvama, the management’s commentary during the company’s Annual General Meeting (AGM) raised some red flags. For Q1FY26, Trent has guided for ~20% revenue growth—significantly lower than its five-year compound annual growth rate (CAGR) of 35%. Notably, the company had earlier indicated that a 25% revenue CAGR was sustainable during an analyst meet.
Factoring in the softer outlook, Nuvama has cut its revenue estimates for FY26 and FY27 by 5% and 6%, respectively. EBITDA estimates have also been revised downward by 9% and 12% for the same years.
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