TRENT

Fundamental View-

Trent Ltd., a Tata Group retail leader behind brands like Westside, Zudio, and Star, continues to demonstrate strong fundamentals—boasting minimal debt, high return ratios (ROCE 25%, ROE 20%), and aggressive expansion, especially in affordable fashion (Zudio now over 760 stores) However, shares slumped ~7–9% post-Q1FY26 results as standalone revenue growth slowed to ~20% YoY (vs. past 35% CAGR) and the outlook for near-term growth sounded cautious at the AGM, prompting a downgrade to “Hold” by Nuvama. At present, the stock trades around ₹5,400 with a high P/E (~124×) and remains range-bound following recent consolidation. While near-term momentum is checking, the long-term growth story remains intact if revenue growth accelerates and new segments like Zudio Beauty gain traction—investment remains appealing for patient investors. Technical View- As seen in the chart, Trent has witnessed a continuous decline since July 4th, following a report by Nuvama, and the stock currently appears to be in a downtrend in both the short and medium term. The RSI is near 39, and the MACD shows a negative crossover, indicating weakening momentum. However, one important observation is that the stock has been consistently holding the 5400 level for the last three trading sessions, suggesting strength at that support zone. From a long-term investment perspective, the stock can still be considered for the portfolio. If Trent sustains above 5400, it may enter a recovery phase and retest its 55-day EMA and 50-day Moving Average, which are around the 5650 level. Based on the current structure, a stoploss at 5300 can be considered, with potential upside targets of 5650–5700 in the short term. Warning- ***** ***** *****