Trent Shares Fall 2.46% Despite Strong Q4 Results; Citi Issues ‘Sell’ Call, Goldman ‘Neutral’

Overview

• Trent share price declined 2.46% to Rs. 4,325 after a sharp 30% monthly rally, indicating profit booking pressure despite a 32.57% rise in quarterly net profit.

• The stock is trading at a high PE of 93.94 compared to the sector PE of 73.87, which has raised valuation concerns among investors.

• Brokerage sentiment remains divided. UBS, HSBC, and Motilal Oswal maintained bullish targets up to Rs. 5,450, while Citi has issued a sell call at Rs. 4,100.

Trent share price is under pressure even after the company posted solid quarterly numbers. The Tata Group stock crashed 4% before settling for a 2.46% loss at Rs. 4,325.50 at press time. It opened higher at Rs. 4,440 but slipped during the session, touching a low of Rs. 4,252. This decline comes after a strong rally in the past month, which is why some investors are booking profits.

Here is an in-depth analysis of the Trent share price, based on Moneycontrol data.

Strong Q4 Performance Supports Growth

Trent reported a net profit rise of 32.57% year-on-year to Rs. 413.1 crore. The company’s revenue from operations also grew 19.23% to Rs. 5,027.99 crore. Total income came in at Rs. 5,055.90 crore, while expenses increased at a slower pace, helping margins improve.

For the full year FY26, the company posted a profit of Rs. 1,721.33 crore, up 12.18% from last year. Total income for the year stood at Rs. 20,189.05 crore, showing steady business growth. The company continues to benefit from strong store additions and better cost control.

From a technical view, the stock is trading below its VWAP of Rs. 4,356, which shows short-term weakness. Immediate support is near Rs. 4,261, while resistance is around Rs. 4,509.

Trent's share price chart on Moneycontrol shows gains of 2.44% in the afternoon trade.

Expansion, Bonus Issue, and Dividend 

Trent is expanding its retail network at a fast pace. It operates brands like Westside, Zudio, and Star. The company now has over 1,250 stores in 321 cities, including a presence in the UAE.

During FY26, it added 60 Westside stores and 212 Zudio stores. This wide reach is helping the company grow its revenue base. The company has also announced a 1:2 bonus issue and a dividend of Rs. 6 per share, which shows confidence in its financial position.

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Why Are Trent Shares Falling

Despite strong results, the stock is seeing selling pressure. One key reason is the recent rally, which has made valuations expensive. The stock is trading at a price-to-earnings ratio of around 93.94, which is higher than the sector average of 73.87. 

Another concern is the company’s plan to raise up to Rs. 2,500 crore. While this move is aimed at future expansion, it has raised questions about capital use. Investors are also cautious due to weak consumer demand and global issues that may impact spending.

Brokerages Share Mixed Views

Brokerages have given mixed opinions on Trent stock. Morgan Stanley has an ‘Overweight’ rating with a target price of Rs. 4,835, suggesting limited upside. UBS is more positive with a ‘Buy’ rating and a higher target of Rs. 5,450.

HSBC also has a ‘Buy’ call with a target of Rs. 4,830, while Bernstein expects the stock to reach Rs. 5,000 with an ‘Outperform’ rating. Motilal Oswal remains bullish and has a ‘Buy’ rating with a target of Rs. 5,250, citing strong execution.

On the other hand, Citi has a ‘Sell’ rating with a target of Rs. 4,100, pointing to margin risks. Goldman Sachs has a ‘Neutral’ view with a target of Rs. 4,330, indicating limited movement.

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Long-Term View

Trent stock has delivered strong returns over the long term. It has gained over 220% in three years and nearly 477% in five years. Even though it has corrected from its 52-week high of Rs. 6,261, the overall trend is positive.

The Tata Group company’s fundamentals are strong with steady growth and expansion. However, high valuation, recent rally, and market concerns are limiting short-term upside. Investors may need to watch how the company manages growth and margins before taking fresh positions.

FAQs

1. Why did Trent share price fall?

Trent share price fell mainly due to profit booking after a strong rally in the past month. The stock had gained over 30%, so some investors chose to lock in gains. Also, concerns about high valuation and future growth have made investors cautious. Even though the company posted strong results, market sentiment remained weak, which led to selling pressure during the day.

2. What are Trent latest Q4 results?

Trent reported strong Q4 FY26 results with net profit rising 32.57% year-on-year to Rs. 413.1 crore. Revenue also grew by 19.23% to Rs. 5,027.99 crore. The company managed to improve margins as expenses grew at a slower pace. For the full year, profit increased by over 12%, showing steady business performance and strong operational growth.

3. Is Trent stock overvalued?

Trent stock is considered expensive by some analysts because of its high price-to-earnings ratio of around 93.94. This is higher than the sector average of 73.87. While the company has strong growth and expansion plans, such a high valuation limits short-term upside. Investors are watching closely to see if earnings growth can justify the premium pricing.

4. What is analysts take on Trent shares?

Brokerages have mixed views on Trent. UBS, HSBC, and Motilal Oswal are positive and have given ‘Buy’ ratings with higher price targets. Morgan Stanley also has an ‘Overweight’ rating. On the other hand, Citi has a ‘Sell’ rating due to concerns about margins. Goldman Sachs has taken a ‘Neutral’ stance, indicating limited near-term movement in the stock.

5. Should I buy Trent stock?

Trent remains a strong company with good long-term growth due to its store expansion and brand strength. However, in the short term, high valuation and recent gains may limit upside. Investors may wait for a better entry point or more clarity on growth and margins before investing. Long-term investors can consider it based on their risk level and goals.