Why did Trent's stock price fall sharply on Tuesday?

Trent's stock fell sharply due to a disappointing third-quarter business update that failed to meet investor expectations for revenue growth.

Are analysts concerned about Trent's stock valuation?

Yes, analysts are concerned that Trent's current earnings growth does not justify its high stock valuations, with price-to-earnings ratios around 90.

What is the outlook for Trent's stock in the next two years?

Some analysts predict that Trent's stock may not offer significant money-making opportunities in the next two years due to slowing growth.

Home / Business and Economy / Trent Stock Plummets: Retail Giant's Growth Disappoints

Trent Stock Plummets: Retail Giant's Growth Disappoints

7 Jan

•

Summary

Trent shares fell over 8% on Tuesday, its biggest drop in six months.
Investors are concerned about slowing growth and high stock valuations.
The company's earnings growth may not justify its rich market price.

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."