Trent Stock Tumbles Despite Profit Beat—Analysts Slash Targets Amid Growth Concerns
Trent's Q2 earnings surprise wasn't enough to satisfy Wall Street's insatiable appetite for hypergrowth. Here's why the market shrugged.
The Profit Paradox
Beating estimates by 12% on net income? Doesn't matter when forward guidance suggests deceleration. Analysts at three major firms simultaneously downgraded price targets—because nothing says 'confidence' like herd mentality.
Growth Engine Sputters
Same-store sales growth dipped to 4.7% versus 6.2% last quarter. That's barely inflation-adjusted progress—hardly the rocket fuel growth story institutions overpaid for during last year's bull run.
The Street's Verdict
Morgan Stanley's note put it bluntly: 'Premium valuation requires premium execution.' Translation: your P/E ratio's about to meet gravity. Meanwhile, retail investors keep bagholding—because fundamentals are just boring FUD, right?
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Leading brokerages maintained their buy ratings but trimmed target prices following the results. Citi cut its target to ₹7,150 from ₹7,600 while maintaining a buy rating, citing slower revenue growth despite profitability beating expectations. MOSL reduced its target to ₹6,400 from ₹6,600, highlighting margin expansion surprises despite the growth slowdown.
Bernstein set an outperform rating with a ₹6,500 target but called the revenue growth a “significant disappointment.” The brokerage noted that despite adding 27 per cent more stores and 38 per cent additional square footage, revenue growth remained subdued. Like-for-like growth moderated to low single digits from mid-single digits in the previous quarter.
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However, Avendus took a more bearish stance, downgrading the stock to ‘Reduce’ with a ₹5,000 target, down from ₹5,650. The brokerage cited stretched valuations at 65 times price-to-earnings and predicted FY26 may witness a consolidation phase with muted macro conditions potentially capping the market capitalization NEAR ₹2 lakh crore.
The mixed analyst reactions reflect concerns over growth sustainability amid competitive pressures in the retail sector.
Published on August 7, 2025
