Trent Stock Plummets: Retail Giant's Growth Disappoints

Trent's stock saw a sharp decline of over 8% on Tuesday, its steepest single-day fall in six months, after its third-quarter performance failed to meet investor expectations. The Tata Group's retail arm experienced a market cap erosion of over ₹13,500 crore as the stock closed at ₹4,055. Analysts pointed to a failure to deliver high double-digit revenue growth and the stock's elevated price-to-earnings ratio, currently around 90 times, as key concerns.

Once a market favorite that surged nearly 1,700% in less than five years, Trent has been on a downward trend since October 2024, shedding 40% in 2025. Analysts attribute this to slowing growth expectations, with current year-on-year growth at 17%, which is considered low amidst economic slowdown. Despite this, valuations remain high, with the stock trading at approximately 70-75 times earnings, leading some experts to predict that "the best is behind Trent."

The downturn in Trent's shares also impacted other retail stocks, with V2 Retail, Aditya Birla Lifestyle Brands, and Shoppers Stop experiencing declines. However, Avenue Supermarts and Aditya Birla Fashion and Retail saw modest gains. Experts believe resuming growth to 25% from the current 17% will be challenging for Trent, especially after extensive store expansion. Short-term earnings downgrades are also anticipated, potentially weighing on the stock's recent recovery.