Trent slips from ‘must-own’ to ‘okay-to-have’ as growth momentum cools, analysts turn cautious

Tata group-owned Trent

is gradually slipping from being a must-own stock in investor portfolios to merely an “okay-to-have,” as its once-strong revenue growth shows visible signs of fatigue. The company’s revenue expansion has moderated meaningfully over the past three quarters, weighed down by a high base effect and softening discretionary spending.

Once a Dalal Street darling, Trent has witnessed a steady erosion in analyst confidence. The stock, which enjoyed unanimous “Buy” ratings from all 11 analysts tracking it in July 2019, now has fewer than 60% recommending a purchase, according to Bloomberg data. The number of “Sell” calls has climbed to six — the highest ever in absolute terms. As of Monday, 27 analysts cover the stock on Bloomberg, of which 16 rate it a “Buy”, five a “Hold”, and six a “Sell.”

Shares of Trent closed Monday’s (November 10) session at ₹4,283.70 on the NSE, down 7.4%, marking their lowest level since April 2024. The stock has now fallen nearly 50% from its October 2024 highs and is down 40% so far this year. Once among the most-favoured Tata group counters, Trent has joined Tejas Networks among the worst-performing Tata group stocks of 2025. Tejas shares have plunged about 57% during the same period.

In the quarter ended September 2025, Trent’s like-for-like growth in its fashion portfolio was limited to low single digits, reflecting rising competitive intensity, with new entrants expanding rapidly through aggressive pricing and trend-led styling. Its beauty & personal care, innerwear, and footwear segments contributed 21% of revenues, while online sales grew 56%, accounting for over 6% of Westside’s revenues.

Analysts attribute the slowdown to normalizing same-store sales growth, fewer store additions, and cautious consumer sentiment in the value fashion space. While profitability has remained stable, the cooling top-line trajectory has dampened investor enthusiasm, prompting fund managers to reassess Trent’s premium valuation relative to peers such as Aditya Birla Fashion and V-Mart Retail.

Brokerages have also turned cautious, trimming their ratings and target prices. Citi, which downgraded the stock from Buy to Sell, noted: “While margins may continue to surprise positively, we believe acceleration in growth will be key for valuation multiples to sustain.”

For the September 2025 quarter, Trent reported a 6.5% rise in net profit to ₹451 crore, while revenue increased 17.1% to ₹4,036 crore — its slowest pace since March 2021.