Stock Crash: Trent shares tank 11%, most in three months after growth slows, Nuvama downgrades

Shares of Tata Group's Trent Ltd. fell as much as 10% at the start of trade on Friday, July 4, after the company warned of growth slowing down at its Annual General Meeting.

At its AGM, Trent highlighted that its expects growth in the just concluded first quarter of financial year 2026 to be close to 20%, which is well below the five-year Compounded Annual Growth Rate (CAGR) of 35% reported by the company.

The same was confirmed in its quarterly business update shared on the exchanges on Friday, where standalone revenue grew by 20% from last year to ₹5,061 crore.

At the end of the June quarter, the company's store portfolio included 248 Westside, 766 Zudio and 29 stores across other lifestyle concepts.

Trent had earlier highlighted at an analyst meet that a revenue CAGR of 25% is sustainable.

As a result of this, brokerage firm Nuvama has cut its financial year 2026 and 2027 revenue growth estimates on Trent by 5% and 6% and its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) estimates by 9% and 12% respectively over the same time frame.

Nuvama has also downgraded Trent to "hold" from its earlier rating of "buy" and also cut its price target to ₹5,884 from ₹6,627 earlier.

On the flip side, brokerage firm Morgan Stanley maintained its "overweight" stance on Trent, with a prie target of ₹6,359, stating that growth in the next five years could be at a 25% to 30% CAGR. The management also highlighted that it is not worried about competition as there is space for multiple players in this field.

Out of the 25 analysts that cover Trent, 18 of them have a "buy" rating on the stock, four have a "hold", while three have a "sell" rating.

Shares of Trent are now down 10% at ₹5,572.