Trent Ltd.
Consumer Goods · NSE
52-week range
₹3,276 – ₹6,261
From 52w high
-32.2%
RSI (14)
59.0
vs SMA 50 / 200
↑ 50 · ↓ 200
Trent Limited, the Tata Group retail chain operator, trades at ₹4,242 — 32.24% below its 52-week high and 18.72% lower over the past year, now sitting below its 200-DMA of ₹4,426 after a prolonged de-rating. The company reported 5-year revenue and earnings CAGRs of 19.2% and 25.8% respectively, with an ROE of 27.13% and a trailing PE of 87.77 — one of the higher multiples in its Consumer Goods peer group.
- ✓5-year earnings CAGR of 25.8% and revenue CAGR of 19.2% reflect sustained top-line and bottom-line compounding over the measured period.
- ✓ROE of 27.13% ranks 2nd among 6 Consumer Goods peers in the data; consistency score of 98 with FCF positive in 4 of available years and a falling debt trend.
- ✓Forward PE of 56.77 represents a 35% compression versus trailing PE of 87.77, implying the market is pricing in meaningful near-term earnings acceleration.
- ✓Price is 9.4% above the 50-DMA (₹3,877), and RSI at 58.97 is in neutral territory — neither overbought nor at an extreme level.
- ✗Stock is 32.24% below its 52-week high and has declined 18.72% over 12 months; it has traded below the 200-DMA (₹4,426) indicating sustained medium-term price weakness.
- ✗Debt-to-equity of 36.03 is materially elevated for a consumer retail business; even if driven by Ind AS 116 lease liabilities, the scale of reported leverage is the highest among reported peers and warrants close examination of interest coverage.
- ✗Trailing PE of 87.77 is among the highest in the peer group (below only DMART at 96.03), leaving little room for earnings disappointment — and the most recent quarter saw EPS miss estimates by 5.8%.
- ✗Rights issue of ₹2,500 crore, flagged by brokerages as a dilution concern, coincided with a 4% post-results decline on Q4 results day despite the headline beat — suggesting market sensitivity to capital allocation decisions.
- ·Trent announced a 1:2 bonus share issue alongside a ₹2,500 crore rights issue in April 2026 — the first-ever bonus for the company; brokerages flagged potential dilution and demand-side concerns post-announcement.
- ·Q4 results were described as a beat at the headline level but EPS came in 5.8% below analyst estimates; the stock fell 4% on the results day, reflecting investor focus on the rights issue and demand trajectory rather than the headline number.
- ·Mean analyst rating of 1.92 across 25 analysts (1–5 scale, lower = more constructive) as of the run date; nearest resistance levels are ₹4,299, ₹4,457, and ₹4,498, while support levels are at ₹3,693, ₹3,645, and ₹3,275.
- ?Does the D/E of 36.03 reflect primarily Ind AS 116 lease liabilities, or does it include meaningful on-balance-sheet debt — and how does the interest coverage ratio compare to the pre-Ind AS 116 period?
- ?The 5-year earnings CAGR of 25.8% supports a premium multiple, but Q4 saw an EPS miss of 5.8% — is this a one-quarter anomaly or the beginning of a deceleration in the growth trajectory?
- ?The ₹2,500 crore rights issue will increase the share count — how does the implied dilution compare to the expected return on invested capital from the proceeds, and what is management guiding the capital toward?
- ?Given that the stock has de-rated 32% from its 52-week high while the business fundamentals (ROE, FCF, debt trend) remain broadly intact, what factor — valuation reset, sector rotation, or company-specific concern — most plausibly explains the divergence?
PE
87.8
Forward PE
56.8
ROE
+27.1%
Profit margin
+8.6%
D/E
36.03
Dividend yield
+0.1%
Quality score
49/100
ROE 5y above 15%
4/5 yrs
FCF 5y positive
4/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 10 May 2026.