The shares of Tata Group’s Trent Ltd. witnessed a significant decline on Monday, April 7, with the stock crashing by as much as 19% intraday, making it the top loser on the benchmark Nifty 50 index for the day. This marks the third consecutive day of losses for the retail-focused company.

This steep fall came after the company released its March quarter (Q4 FY24) business update, which failed to meet market expectations, leading to a massive erosion in investor wealth and a negative sentiment across Tata Group stocks.

Market Reaction and Share Performance

By the end of the day, Trent shares were trading at ₹4,570, marking a 17.85% drop, the largest single-day decline since June 2024. The stock has now declined by 35% in 2025 alone, and more alarmingly, corrected 46% from its all-time high of ₹8,345, which it had touched on October 14, 2024.

With Monday’s fall, Trent’s market capitalisation shrunk by more than ₹30,000 crore, triggering concerns among investors regarding its valuation and near-term outlook.

Disappointment in Q4 Business Update

According to the business update shared by the company:

• Revenue during Q4 FY24 grew by 28% YoY

• Full-year revenue surged by 39% YoY

While these numbers may seem robust at first glance, analysts expected stronger growth, especially after the stock had seen a significant rally last year.

Brokerage Reactions and Target Downgrades

The fall was further exacerbated after foreign brokerages revised their outlook on the stock.

• Goldman Sachs slashed its price target on Trent to ₹6,760, down from ₹7,500, citing slower-than-expected sales growth.

• Morgan Stanley also commented that Q4 top-line growth was below street expectations, leading to a reduced appetite among institutional investors.

These revisions reflect growing concerns around valuations, especially for consumer discretionary stocks trading at premium multiples.

Technical Indicators Turn Bearish

Technical indicators also show signs of weakness in the stock:

• Trent stock has slipped below its 30-Day Moving Average (DMA), now placed at ₹5,153.5.

• The Relative Strength Index (RSI) has dropped to 59.2, signaling that the stock is neither overbought nor oversold but trending lower.

• A further fall in RSI below 30 would indicate the stock is in the "oversold" zone, making it vulnerable for more corrections unless buying interest returns.

These metrics suggest that momentum has turned negative, and unless there’s a strong trigger, Trent may remain under pressure in the short term.

Tata Group Stocks Under Pressure

The decline in Trent is part of a broader fall in Tata Group stocks, many of which are constituents of the Nifty 50 index. Along with Trent, TCS, Tata Steel, Tata Motors, Titan, and Tata Consumer Products also witnessed selling pressure, leading to a combined market capitalisation loss of over ₹1 lakh crore on Monday.

Among these:

• Tata Motors fell nearly 10% after news of Jaguar Land Rover pausing shipments to the US.

• Tata Steel slipped over 11% with large block deals seen on the counter.

• TCS, India's largest IT services company, dropped 5% ahead of its Q4 results, touching its 52-week low.

• Titan and Tata Consumer Products showed relatively smaller declines but still contributed to the overall loss.

This broad-based fall across Tata stocks magnified the impact on market cap, and Trent’s underperformance only added to the woes of the group.

Analyst Sentiment Remains Cautiously Optimistic

Despite the recent correction, analysts are not entirely bearish on Trent:

• Out of 24 analysts covering the stock, 17 maintain a ‘Buy’ rating.

• 3 recommend ‘Hold’, while 4 have a ‘Sell’ rating.

This implies that market experts still see potential in Trent, albeit at more reasonable valuations.

They believe that the long-term story remains intact, given Trent’s aggressive expansion strategy, strong brand portfolio (Zudio, Westside), and its leadership in the fashion retail segment. However, there’s a short-term overhang due to premium valuations and recent growth slowdown.

What Should Investors Do?

For existing investors, this sharp decline offers a moment to reassess exposure to the stock. While long-term fundamentals remain strong, the short-term correction may continue until earnings visibility improves.

• Those with a long-term horizon can consider holding, as analysts expect Trent’s business to recover once consumer sentiment strengthens.

• New investors may want to wait for further consolidation or signs of stability before entering, particularly if the stock drops further below its current levels.

Given that the market cap erosion is substantial, any positive catalyst like better-than-expected results or upbeat management commentary in the next quarter could offer a sharp reversal.

Conclusion

Trent’s 19% crash on Monday, though dramatic, appears to be a function of valuation catch-up, slower-than-expected sales, and broader market sentiment against Tata Group stocks. With market cap erosion of ₹30,000 crore, the pressure on Trent is real, but so is the long-term growth story if the company manages to revive its pace.

Investors are advised to track Q1 performance, technical indicators, and analyst revisions closely in the coming weeks to make informed decisions. As always, diversification and risk management should be key while dealing with high-growth but volatile stocks like Trent.

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