Tata Group-owned Trent, which was Nifty’s top-performing stock in 2024 with a remarkable 133 per cent return, has hit a rough patch in 2025. The fast-fashion giant has seen its share price drop 19 per cent this month, erasing Rs 47,000 crore in market value. Compared to its October peak of Rs 8,345.
85, the stock is now down by 31 per cent. Analysts have identified six key reasons behind Trent’s downturn. 1.
Moderating Growth ProfileTrent, which had consistently posted over 50 per cent revenue growth since Q4 FY21, reported a 40 per cent year-on-year (YoY) revenue growth in Q4 FY24—impressive but below market expectations. Analysts attribute this to muted consumer sentiment, seasonality, and the closure of 25 stores (16 Zudio and 9 Westside). Jefferies noted that Westside experienced a net decline of two stores, exiting five cities in the second consecutive quarter of contraction.
2. Earnings ChallengesTrent is scheduled to announce its Q3 FY25 results on 6th February. Ahead of this, Kotak Institutional Equities downgraded the stock to "sell," setting a target price of Rs 5,850.
While Nuvama expects 40 per cent YoY revenue growth, it anticipates a moderation in gross margins by 50 basis points YoY, raising concerns about profitability. 3. Valuation PressureAt its peak, Trent traded at an elevated price-to-earnings (PE) ratio of 133.
7x its estimated FY25 earnings. Kotak noted that with a moderating growth profile, the high valuation is difficult to justify, making it an o.
