Trent shares slip 2.5% despite analyst Buy ratings after strong Q4

Shares of Trent Limited were trading down 2.53 per cent at ₹4,322.10 on the NSE around noon on Friday, a day after the Tata Group retailer reported strong Q4FY26 results. The stock opened at ₹4,440, hit a high of ₹4,479.40 and slid to a low of ₹4,252 in early trade, with sell orders dominating at 66.59 per cent of the order book against 33.41 per cent on the buy side. Traded volume stood at 32.09 lakh shares worth ₹1,398 crore, already surpassing Thursday’s full-day value. The stock’s market cap stood at approximately ₹1.54 lakh crore at current levels.

The sell-off comes despite a broadly positive reception from analysts. Motilal Oswal retained its Buy rating with a revised target of ₹5,250, citing strong margin expansion and robust store additions. Morgan Stanley maintained an Overweight stance with a ₹4,835 target, noting the Q4 margin beat and intact growth strategy. HSBC kept a Buy rating at ₹4,830, flagging the 15 per cent EBITDA beat against consensus driven by higher gross margins. Bernstein held an Outperform with a ₹5,000 target, calling the quarter a return to the 20 per cent growth profile with margin expansion, though it noted the proposed rights issue was uninspiring. Jefferies holds a more cautious Hold rating at ₹4,675, acknowledging strong operating leverage but flagging management’s cautious near-term demand commentary.

The lone bear on the street is Citi, which has a Sell rating with a target of ₹4,100 — currently the only target price below the trading level. Citi flagged that the gross margin beat of 171 basis points likely benefited from inventory provisioning reversals, questioning the sustainability of the improvement.

A key overhang on sentiment is the board’s approval of a ₹2,500 crore equity fundraise, likely through a rights issue. While analysts broadly acknowledge the strategic rationale — store upgrades, supply chain automation, and Star expansion — the dilution prospect appears to be weighing on the stock near term.

On results, Trent posted standalone Q4 revenue of ₹4,937 crore, up 20 per cent year-on-year, with operating EBITDA surging 43 per cent and PAT rising 30 per cent to ₹455 crore. The stock remains down nearly 19 per cent over the past year against its 52-week high of ₹6,261.

Published on April 23, 2026