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Shares of Trent Ltd
. fell for the second day in a row on Wednesday, January 7, extending their losses to 10% in the last two sessions. The stock had declined over 9% on Tuesday, in response to its quarterly business update.
The company in its third quarter business update reported a revenue growth of 17%, well below the management guidance of 25% which it had shared in an earlier analyst meet.
Morgan Stanley maintained its "overweight" rating on Trent with a price target of ₹5,456, stating that the Q3 growth was largely in-line with their expectations, although lower than the third and fourth quarter of financial year 2025 and the first quarter of financial year 2026.
Citi though, reiterated its "sell" rating on the stock with a price target of ₹4,350.
At the current price, Trent trades at a financial year 2027 estimated price-to-earnings multiple of 72 times, which is lower than the five-year average of 95 times, and nearly half of the 140 times that it traded at its peak.
During peak valuations, the three-year sales Compounded Annual Growth Rate (CAGR) for Trent stood at 55%, while at the same time, its price-to-earnings growth (PEG) ratio was 2.5 times. Currently at 18% sales CAGR, Trent's PEG ratio is at 4 times.
18 out of the 28 analysts tracking Trent still have a "buy" rating on the stock, while five each have a "hold" and "sell" rating. Trent shares are trading below their lowest price target of ₹4,350, which is from Citi.
Shares of Trent are now trading 0.8% lower at ₹4,013, having made an intraday low of ₹3,988. The stock's 52-week low is at ₹3,933.
The company in its third quarter business update reported a revenue growth of 17%, well below the management guidance of 25% which it had shared in an earlier analyst meet.
Morgan Stanley maintained its "overweight" rating on Trent with a price target of ₹5,456, stating that the Q3 growth was largely in-line with their expectations, although lower than the third and fourth quarter of financial year 2025 and the first quarter of financial year 2026.
Citi though, reiterated its "sell" rating on the stock with a price target of ₹4,350.
At the current price, Trent trades at a financial year 2027 estimated price-to-earnings multiple of 72 times, which is lower than the five-year average of 95 times, and nearly half of the 140 times that it traded at its peak.
During peak valuations, the three-year sales Compounded Annual Growth Rate (CAGR) for Trent stood at 55%, while at the same time, its price-to-earnings growth (PEG) ratio was 2.5 times. Currently at 18% sales CAGR, Trent's PEG ratio is at 4 times.
18 out of the 28 analysts tracking Trent still have a "buy" rating on the stock, while five each have a "hold" and "sell" rating. Trent shares are trading below their lowest price target of ₹4,350, which is from Citi.
Shares of Trent are now trading 0.8% lower at ₹4,013, having made an intraday low of ₹3,988. The stock's 52-week low is at ₹3,933.
