Trent Shares Nosedive 11% Today: What Triggered the Sell-Off? Check Reasons & Target Price

Tata Group's retail giant Trent shares this morning are facing a hard run with a massive sell-off seen; the stock has crashed more than 11% so far today.

Trent shares opened around Rs. 3,080, down sharply from Monday's previous close of Rs. 3,343.80. The stock has been trading lower consistently and hit an intraday low of Rs.2951 apiece on the NSE.

Despite today's decline, Trent shares have provided profitable returns over the past few months. The stock has surged 9% over the last six months.

Trent Q1 FY27 Business Update Reaction

The negative sentiment around the stock is due to the missed estimates of Q1FY27. The company released its Q1FY27 business update after market hours yesterday. In the exchange filing, it mentioned that Trent Ltd.'s Q1FY27 revenue rose 19% YoY to Rs. 5,666 crore, with total store count reaching 1,312, including 1 new Westside and 19 new Zudio stores, including UAE locations.

"The performance fell just short of the street's lofty 22%-23% expectations, prompting major brokerages to recalibrate their near-term targets," said Nishchal Jain, Quant Researcher, Share.Market by PhonePe

"Technically, the revenue miss triggered intense institutional profit-booking on July 7th, causing the stock to plunge over 11% intraday. This high-volume sell-off decisively shattered the crucial Rs. 3,300 support zone and snapped a massive 50% rally from its March lows, cooling off deeply overbought momentum indicators and trimming calendar-year gains to roughly 6%." He further added

In the March quarter, Trent Ltd reported a 19.23% YoY rise in revenue to Rs. 5,027.99 crore and a net profit increase of 32.57% to Rs. 413.1 crore. The board also approved a 1:2 bonus issue and a final dividend of Rs. 6 per share.

Brokerage on Trent

Since the stock missed the street estimates, brokerages see the possibility of some near-term weakness following the slightly weaker Q1 business update.

Morgan Stanley has maintained an Overweight rating for the stock with a target price of Rs. 3,151.
While Goldman Sachs has assigned a neutral rating to the retail stock with a target price of Rs. 2,886.6.

The brokerage, in its report, said, "Marginal deterioration was observed in sales per store trends, contrary to investor expectations of continued improvement. Q1 like-for-like (LFL) growth is likely to remain in the low single digits, similar to or slower than Q4FY26."

About Trent

Trent Limited is a Tata Group retail company based in Mumbai, best known for brands like Westside and Zudio. It operates across fashion, lifestyle, beauty, home, and food retail.

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