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Ace Dalal Street investor Radhakishan Damani suffered a setback of over Rs 310 crore after shares of Trent Ltd tumbled 11%; Know why
Radhakishan Damani
Why Are Trent Shares Falling? Ace Dalal Street investor Radhakishan Damani suffered a setback of over Rs 310 crore after shares of Trent Ltd tumbled 11% during Friday’s trading session. The sharp fall in the Tata Group-backed retail stock eroded the value of Damani’s holding from Rs 2,788.46 crore to Rs 2,476.82 crore — a decline of Rs 311.64 crore.
As of March 31, 2025, Damani held 45,07,407 equity shares — representing a 1.27% stake in Trent — through his investment firm Derive Trading and Resorts. The company is yet to disclose its shareholding data for the June 2025 quarter (Q1FY26).
Trent shares plummeted to an intraday low of Rs 5,495 on the BSE, dragging its market capitalization below the Rs 2 lakh crore mark. The stock has now slipped over 34% from its 52-week high of Rs 8,345.85, touched in October 2024. Analysts cautioned that further downside may follow once the 15-minute circuit filter resets.
Growth Concerns Trigger Sell-Off
The sell-off was triggered by weaker-than-expected commentary during Trent’s recent Annual General Meeting (AGM), where management flagged near-term growth concerns. The company projected around 20% growth in its core fashion business for Q1FY26 — significantly below its five-year compound annual growth rate (CAGR) of 35%.
While Trent reiterated its ambition of sustaining 25%+ growth in the coming years, the current run rate fell short. Citing this slowdown, Nuvama Institutional Equities revised its FY26/FY27 revenue estimates down by 5% and 6%, respectively, while EBITDA forecasts were slashed by 9% and 12%. The brokerage downgraded the stock to ‘Hold’ with a revised target price of Rs 5,884.
“Growth from Zudio Beauty and the Star business could become key levers, but these segments need to stabilise before scaling,” Nuvama added.
Mixed Views from Brokerages
HDFC Securities, in a note released last week, maintained a bearish view. It expressed concerns about potential saturation across Trent’s brands, including Westside and Zudio. “We suspect Westside is showing signs of customer fatigue, Zudio’s efficiency is optimal, and success in Star is not a cinch,” it said.
Factoring in a 23% CAGR in revenue and PBT over FY25-27 — 8–10% below consensus — HDFC Securities retained a ‘Sell’ rating with a sum-of-the-parts (SOTP) target of Rs 4,300.
On the contrary, Elara Capital maintained a ‘Buy’ rating on the stock with a target price of Rs 8,300. The brokerage expects stable EBITDA margins for Q1FY26, projecting a gross margin expansion of 117 basis points quarter-on-quarter to 43.8%, despite a seasonal drop in EBITDA margin to 15.3% due to higher rental costs.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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