Why is the Trent Share Price Falling?
Posted by : sachet | Tue Dec 16 2025
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As per the recent share price movements of Trent Ltd, it has declined by 2.70% over the past five days and continues to trend downward, influenced by valuation pressures, recent flat results, and broader sector weakness, despite strong long-term growth metrics. Trent’s stock has been in a decline phase over the past week, losing 4.89%, significantly underperforming the Sensex, which declined by only 0.84% in the same period. Over the last month, the stock dropped 6.17%, while the Sensex gained 1.02%. Year-to-date, the stock has decreased 43.54%, in contrast to the Sensex’s 8.00% gain. Although the company has consistently reported positive results over the last four quarters, the current market sentiment appears to be negatively affecting its stock price.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day, reflecting a bearish technical outlook. The retail sector has been weak, with the sector index down 2.21%, though Trent marginally outperformed the industry on a day-to-day basis, up 0.55%. Notably, investor participation has increased, with delivery volumes on 15th December rising by 94.38% compared to the five-day average, indicating high trading activity despite the price decline.
Key Reasons Behind the Trent Share Price Fall
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There are several reasons behind the Trent share price fall, including a decline in Q2 results, weak consumer demand, expansion and new brand costs, and a temporary drop in the grocery business.
- Decline in Q2 Results: While Trent’s revenue from operations witnessed a near 16% year-on-year (YoY) growth, some analysts said that revenue growth continued to decelerate in Q2 FY26, a sharp ~17% offset as ~43% YoY area addition growth, and a YoY decline in revenue per square foot, indicating store-level sales stabilisation which leads to Trent share price fall.
- Weak Consumer Demand: Management clearly mentioned that consumer sentiment was muted in this quarter. People spent cautiously because of unseasonal rains and the transition to the new GST structure, which impacted the Trent share price fall. Many shoppers focused on buying big-ticket items that had tax benefits after the GST change, while small lifestyle and fashion products saw less demand.
- Expansion and New Brand Costs Pressured Margins: Trent’s operating profit margin came down slightly, from 11% last year to around 10% now. That’s because the company is spending heavily on expansion and new launches. In this quarter alone, Trent opened 63 new stores across brands, including Westside, Zudio, and its new youth brand “Burnt Toast”.
- Grocery Business Faced a Temporary Drop: Trent also runs a grocery chain called STAR, which saw a slight decline in revenue to ₹898 crores this quarter. Some stores were undergoing renovation, which affected sales and led to the Trent share price fall. While this part of the business is much smaller than fashion, it still slightly slowed overall growth.
Trent: An Overview
Trent Limited is an Indian retail company which is part of the Tata Group and is based in Mumbai. Trent owns and operates fashion and lifestyle retail formats such as Westide, Zudio, and Utsa. The company also operates retail chains such as Star Bazaar and Zara through joint ventures. In 2024, the company began operating internationally with the opening of a Zudio store in Dubai. The company was incorporated initially as Lakme Limited (“Lakme”) on 5th December 1952. In parallel, with effect from 1st January, 1998, Lakme Exports Limited, a subsidiary of Lakme, was amalgamated with LIIPL and the merged entity was named as Trent Limited. Subsequently, with effect from 1st July 1998, Trent Limited was amalgamated with Lakme, and the name of Lakme Limited was changed to Trent Limited.
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Trent: Performance Analysis
The stock’s valuation remains a key concern for investors, with a return on capital employed (ROCE) of 26.8. Trent is considered very expensive, trading at an enterprise value to capital employed ratio of 19.1. Although this valuation is discounted relative to its peers’ historical averages, it still reflects a premium that may be difficult to justify given recent performance. Furthermore, the price-to-earnings growth (PEG) ratio stands at 4.7, indicating that the stock’s price is high relative to its earnings growth, a factor that often deters value-conscious investors. Over the past year, while Trent’s profits have increased by 19%, the stock price has declined sharply by 41.57%. The stock is trading at a discount compared to its peers’ average historical valuations. Over the past year, while the stock has returned -42.05%, its profits have risen by 19%. The 1 Year share price target of Trent is ₹3,424, and the stock has fallen due to the lower demand and currency fluctuations.
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How have Trent Shares Performed Recently?
The stock traded close to its 52-week low, just 0.79% above the bottom price of ₹3,986.4. It’s been falling for four consecutive days, losing 4.67% in that period. Its long-term growth trajectory remains healthy, with net sales expanding at an annual rate of 47.45% and operating profit growing by 76.65%. Institutional investors hold a significant 36.81% stake, suggesting confidence from well-informed market participants. Furthermore, the price-to-earnings growth (PEG) ratio stands at 4.7, indicating that the stock’s price is high relative to its earnings growth, a factor that often deters value-conscious investors. The stock has also underperformed the broader BSE500 index, which generated a modest 0.18% return over the same period, with relative weakness. The Trent share price target for six months is ₹4,897.
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Trent: Share Price Target
According to some analysts, the Trent share price target is ₹5,495. The consensus estimate represents an upside of 35.58% from the last price of 4,052.90. View 17 reports from 5 analysts offering long-term price targets for Trent Ltd. The 23 analysts offering 1-year forecasts have a maximum estimate of 6,650.00 and a minimum estimate of 4,300.00. Approximately 26 analysts, 50%, recommend a ‘BUY’ rating for Trent. Average target price of ₹5,270.92. Bernstein cut Trent’s share price target to ₹5,000, thus implying 19% upside, while maintaining its ‘Outperform’ rating.
Note: For live Trent Share Price Target, visit the univest app and check the stock fundamentals.
Trent: Future Outlook
Trent’s latest quarterly results showed standalone product sales up 17% year-on-year and first-half 2026 revenue rising 19%. Still, this growth was the company’s slowest in many quarters. Brokers have lowered growth and earnings forecasts for FY26-28 by 3-7%, reflecting weaker same-store sales and muted demand. Margins were hit. In Trent Limited’s budget brand Zudio, each store earned less money per square foot, and profits per square foot also fell. More competition and weaker customer spending made the business perform poorly, worse than before. Subsidiary businesses did not help either. The cash-and-carry business saw a 23% year-on-year drop in revenue and the estimated share price target for the Trent is ₹3,451, and profits from that vertical shrank significantly. Finally, observe brokerage estimates and market multiples. Since a large amount has lowered some brokers’ goal prices, any sign of stability or growth in performance could prompt multiple re-ratings to increase.
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Trent: Analysts Rating
- The average 12-month share price target is ₹5,495.00, and the consensus rating is Hold (mix of Buy, Hold, & Sell).
- The analyst’s target range is observed between a high of ₹3,456.00 and a low of ₹1,324.78.
- According to some analysts, concerns remain about a ‘Reduce’ call at ₹180.78.
- The analyst’s sentiment is mixed; there have been recent bullish calls (ICICI, JM), but also cautious ones (Motilal Oswal, Nuvama).
Note: For the live Trent Share Price Target, visit the univest app and check the stock fundamentals.
What is the Right Time to Buy Trent Shares?
According to analysts, the Trent share price is determined by market factors. The share price has decreased due to internal company factors, as discussed above. Therefore, investors must review all relevant factors before investing in Trent. There are some factors to consider before investing in Trent Company shares.
- Strong Fundamentals: Investors should review Trent Company’s fundamentals before investing. If a company has strong fundamentals, high profitability, and effective management, then investors should consider investing in it.
- Financing Partnerships: Financing partnerships bridge the gap between customers and financial institutions, facilitating the distribution of a wide range of products and generating positive sales revenue for many consumers.
- Growth in the Diversified Sector: The company is well-positioned in the diversified sector to deliver benefits to Trent. This dominant sector increases demand and prices for the Trent Company. Margins were hit. In Trent Limited’s budget brand Zudio, each store earned less money per square foot, and profits per square foot also fell.
- Highly Volatile: Prices are highly volatile, so price changes significantly impact Trent Company’s stock price. Investors must review the market structure before investing in Trent shares.
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Conclusion
The retail division of the Tata Group, Trent, outperformed investors’ expectations in 2023 and 2024. The stock has been a fantastic performer, delivering close to 496% returns over the past five years through the end of 2025. Over the last 5 years, Trent delivered robust growth: median sales growth around 22%, return on equity near 13%, and sustained working-capital efficiency. Subsidiary businesses did not help either. The cash-and-carry business saw a 23% year-on-year revenue drop, and profits from that vertical shrank significantly. Finally, observe brokerage estimates and market multiples. The retail sector has been weak, with the sector index down 2.21%, though Trent marginally outperformed the industry on a day-to-day basis, up 0.55%. Notably, investor participation has increased.
FAQs
What are the key reasons for the decline in the Trent share price?
Ans. There are several reasons for the fall in the Trent share price, including a decline in Q2 results, weak consumer demand, expansion and new brand costs, and a temporary drop in the grocery business. Management clearly mentioned that consumer sentiment was muted in this quarter. People spent cautiously because of unseasonal rains and the transition to the new GST structure. Trent’s operating profit margin came down slightly, from 11% last year to around 10% now. That’s because the company is spending heavily on expansion and new launches.
What is the growth slowdown or value pick of Trent Ltd?
Ans. The retail division of the Tata Group, Trent, outperformed investors’ expectations in 2023 and 2024. The stock has been a fantastic performer, delivering close to 496% returns over the past five years through the end of 2025. However, as of 2025, the stock is down almost 50% from the peak. Does the quick change make it a good deal right now, or do the undefined flaws mean the Trent will have to deal with other problems.
What is the Trent Share price target?
Ans. According to some analysts, the Trent share price target is ₹5,495. The consensus estimate represents an upside of 35.58% from the last price of 4,052.90. View 17 reports from 5 analysts offering long-term price targets for Trent Ltd. The 23 analysts offering 1-year forecasts have a maximum estimate of 6,650.00 and a minimum estimate of 4,300.00. Approximately 26 analysts, 50%, recommend a ‘BUY’ rating for Trent.
What are the factors that affect the Trent share price?
Ans. According to analysts, the Trent share price is determined by market factors. The share price has decreased due to internal company factors, as discussed above. Therefore, investors must review all relevant factors before investing in Trent. There are some factors to consider before investing in Trent Company shares. Investors should review Trent Company’s fundamentals before investing. If a company has strong fundamentals, high profitability, and effective management, then investors should consider investing in it.
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