Shares of Tata Group's Trent Ltd. are down another 3.5% on Friday, November 8, carrying on from Thursday's fall of 6.
5%. With Friday's fall, the stock has declined 10% in the last two trading sessions. NSE Trent's shares fell on Thursday after the company's reported a marginal miss on elevated expectations.
Revenue for the quarter increased by 39% to ₹4,157 crore from ₹2,982 crore during the same quarter last year. A CNBC-TV18 poll had pegged the revenue figure at ₹4,295 crore. Net profit for the company stood at ₹335 crore, compared to a CNBC-TV18 poll of ₹428 crore.
On a year-on-year basis, Trent's bottomline grew by 47%. Depreciation for the quarter stood at ₹197 crore from ₹152 crore during the quarter, while the share of Joint Venture profit fell to ₹5.7 crore from ₹25 crore last year.
Both these factors impacted Trent's profitability, along with higher taxes, which increased to ₹132 crore from ₹86 crore last year. Brokerage firm Jefferies maintained its "hold" rating on Trent with a price target of ₹5,900. Jefferies' price target implies a further 9.
3% downside from Thursday's closing levels on Trent. Jefferies said that Trent missed elevated growth estimates even while growth remained strong during the quarter. The company also closed stores in both the key fashion formats.
The management though, remains confident of the growth opportunity, Jefferies said. "It was into a downtrend yesterday, it fell significantly with a jump in volumes also. So,.