Trent share price today: Stock drops around 9%; Nuvama downgrades

Trent Ltd, a Tata Group company, saw a important stock terms diminution of 8.7% to Rs 5,652 connected the National Stock Exchange connected Friday. This driblet followed the company's AGM announcement regarding slower gross growth, starring Nuvama brokerage to revise its standing to 'hold' and trim the people terms from Rs 6,627 to Rs 5,884.During its AGM, Trent revealed anticipated gross maturation of astir 20% for Q1FY26, indicating a important simplification from its erstwhile performance, according to an ET report. This forecast represents a sizeable alteration from the 35% CAGR achieved during FY20-FY25, falling beneath the company's targeted 25% CAGR for aboriginal periods.Nuvama expressed its concerns astir the imaginable slowdown, stating: "At its AGM, Trent disappointed connected near-term maturation expectations successful its halfway manner business, which is expected to present ~20% maturation successful Q1FY26E, sharply down from its five-year CAGR of 35% (FY20–25).

Management reaffirmed their aspiration of 25%-plus maturation for the coming fewer years, but the existent tally complaint falls abbreviated of it."Following this development, Nuvama adjusted its projections downward, reducing FY26 and FY27 gross forecasts by 5% and 6% respectively. Additionally, EBITDA estimates saw reductions of 9% and 12%.The brokerage's determination to follow a much blimpish concern presumption stemmed from the observed maturation moderation, necessitating a reassessment of some Trent's net outlook and valuation.

While downgrading its rating, Nuvama recognised Trent's enduring aspirations and implementation success, specifically highlighting its reaffirmed extremity of achieving a tenfold gross summation successful the upcoming years—a strategical nonsubjective initially presented successful FY23. During the AGM, the enactment squad reported that gross had already doubled since announcing this target."This maturation volition beryllium backed by robust additions of ~250 stores crossed formats arsenic per absorption guidance, whose code has historically been conservative.

Accordingly, we stay assured of absorption beating this fixed the execution way record," Nuvama said.The fiscal services steadfast identified Zudio Beauty and Star Bazaar arsenic cardinal gross generators for aboriginal expansion, whilst noting that some ventures necessitate operational stableness earlier undertaking important maturation initiatives.

Trent: Key AGM Updates

Star Bazaar outlook: Trent Hypermarket (Star Bazaar) has the imaginable to turn larger than Westside and Zudio, chiefly owed to the important size of India's nutrient retail sector.Independent operations: Star Bazaar volition support its absorption connected Trent's branded products, without plans to integrate with Big Basket, which is viewed arsenic a higher-priced alternative.Growth targets: Management confirmed their FY23 people of achieving 10x gross growth, highlighting that gross has already accrued twofold since the announcement.Retail enlargement plans: The organisation plans to found implicit 250 caller stores crossed assorted formats successful FY26, with flexibility to summation this fig based connected marketplace dynamics and existent property availability.Trent's stock terms has accrued by astir 70% successful 2025, reflecting affirmative capitalist sentiment towards its maturation strategy. However, Nuvama has expressed concerns astir the sustainability of these precocious valuations, noting indications of declining momentum, according to the ET report."Underwhelming near-term maturation prompts the downgrade to 'HOLD' arsenic the existent valuation is excessively demanding. A important leap successful maturation profile, oregon pickup successful different levers i.e.

Star Bazaar, Zudio Beauty stay the cardinal risks to our view," the brokerage concluded.The institution disclosed its Q1 concern show update connected Friday morning, station marketplace opening.For the April–June 4th of FY26, Trent's standalone gross from merchandise income (including GST) reached Rs 5,061 crore, showing a 20% summation from Rs 4,228 crore successful the corresponding play of the erstwhile year, aligning with their projected guidance.As astatine June 30, 2025, Trent's retail beingness comprised 248 Westside stores, 766 Zudio stores (with 2 locations successful the UAE), and 29 stores representing assorted different manner concepts.(Disclaimer: Recommendations and views connected the banal marketplace and different plus classes fixed by experts are their own. These opinions bash not correspond the views of The Times of India)