Trent Shares Fall For Second Day Becoming Worst Nifty 50 Performer So Far

Shares of Tata Group’s Trent Ltd. continued their decline for the second day, dropping over 5% on Tuesday. Once the best-performing stock on the Nifty 50 in 2024, Trent has now fallen over 6% in the last four sessions and more than 17% in the first 15 trading days of 2025.

The stock's downward trend intensified after Kotak Institutional Equities downgraded Trent from 'add' to 'sell', lowering its target price by 14% to Rs 5,850 per share, from Rs 6,800 per share. The downgrade was driven by expectations of slower revenue growth.

Kotak's analysis highlighted a concerning overlap of store locations for Zudio in the top-10 cities by store count, with many stores located too close to one another, leading to revenue cannibalisation. The brokerage noted that 260 out of Trent’s 633 stores as of December 2024 were situated within the same pin code.

While Kotak acknowledged the company's plan to add another 180 stores, it forecasted slow growth in incremental revenue per store, given the nature of the apparel business, compared to grocery stores, which benefit more from proximity.

Trent also plans to expand its Star Bazaar network under Trent Hypermarket, but has added only eight stores in the first half of FY25, falling short of earlier expectations. The brokerage also pointed out that the rise of quick commerce and dark stores could impact this expansion. Consequently, Kotak revised its revenue CAGR forecast for Trent Hypermarket to 32% over FY25-27, down from 58%.

The scrip fell as much as 5.07% to Rs 5,781.10 apiece, the highest level since Aug. 9, 2024. It pared losses to trade 4.18% lower at Rs 5,835.15 apiece, as of 12:27 p.m. This compares to a 0.84% decline in the NSE Nifty 50.

It has risen 84.41% in the last 12 months. Total traded volume so far in the day stood at 2.4 times its 30-day average.

Despite a stellar 133% stock return in 2024, largely due to Zudio, Trent's stock has been the worst performer of the Nifty 50 in 2025, falling 17.02% this month alone.

The stock also slipped below its 200-day moving average of Rs 6,093.21 on Tuesday, with its relative strength index dropping to 27, indicating it is in oversold territory. Additionally, the stock has fallen 29.9% from its all-time high of Rs 8,345 on Oct. 14, 2024.

Out of 22 analysts tracking the company, 12 maintain a 'buy' rating, five recommend a 'hold' and five suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target suggests an upside potential of 18.4%.