Adobe Stock
Trent, the Tata Group’s retail darling, gave investors a jolt today (July 4, 2025). The stock nosedived by 6.7 per cent to Rs 5,772 after the company’s latest AGM sparked worries about a slowdown in its much-loved fashion business. For a stock that’s been priced for perfection, even a small crack in the growth story was enough to send investors scrambling for the exit.
What’s behind today’s fall
- Price action: Shares tanked over 6 per cent on Friday morning, wiping out nearly Rs 28,000 crore in market cap.
- The trigger: Management flagged that fashion growth for Q1 FY26 could be around 20 per cent — a sharp drop from the heady 35 per cent-plus run rate of recent years.
Why investors are spooked
Let’s face it: Trent has been a market favourite for a reason — stellar execution, rapid store expansion (especially Zudio) and fat margins. But when a company is trading at over 130 times earnings, even a whiff of slowing growth can trigger panic. And the AGM’s cautious tone gave investors just that.
The numbers that matter
| Metric | Value |
|---|---|
| Market cap | Rs 2.2 lakh crore |
| P/E ratio | 142.2 |
| P/B ratio | 40.3 |
| EPS | Rs 43.5 |
| ROE | 32.2 per cent |
| ROCE | 42.4 per cent |
| Book value | Rs 153.6 |
| Dividend yield | 0.1 per cent |
Value Research Online ratings
- Overall: 3/5
- Quality: 10/10
- Growth: 8/10
- Valuation: 2/10
- Momentum: 4/10
The takeaway
This drop could either be a healthy reset or the start of a deeper correction. Here’s how it stacks up:
- Bull case: Zudio’s rollout continues at pace, and new formats like Zudio Beauty could surprise on the upside. Long-term growth story remains intact — if you can stomach the volatility.
- Bear case: The market may demand lower multiples if growth continues to slow. That could mean more pain ahead.
Either way, today’s move is a reminder that sky-high valuations come with risks, and the market isn’t always forgiving.
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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and has been reviewed by human experts for accuracy and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
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