⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
TRENT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | TRENT | Market Cap | 1,29,294 Cr. | Current Price | 3,639 ₹ | High / Low | 6,261 ₹ |
| Stock P/E | 68.6 | Book Value | 186 ₹ | Dividend Yield | 0.14 % | ROCE | 28.6 % |
| ROE | 27.2 % | Face Value | 1.00 ₹ | DMA 50 | 3,921 ₹ | DMA 200 | 4,536 ₹ |
| Chg in FII Hold | -1.19 % | Chg in DII Hold | 1.53 % | PAT Qtr | 660 Cr. | PAT Prev Qtr | 451 Cr. |
| RSI | 38.5 | MACD | -117 | Volume | 6,99,252 | Avg Vol 1Wk | 10,41,787 |
| Low price | 3,428 ₹ | High price | 6,261 ₹ | PEG Ratio | 0.88 | Debt to equity | 0.35 |
| 52w Index | 7.45 % | Qtr Profit Var | 40.6 % | EPS | 52.4 ₹ | Industry PE | 26.7 |
📊 Financials
- Revenue Growth: Strong, PAT improved to 660 Cr from 451 Cr
- Profit Margins: EPS at 52.4 ₹, showing solid profitability
- Debt Ratios: Debt-to-equity at 0.35, moderate leverage
- Cash Flows: Healthy, supported by consistent profit growth
- Return Metrics: ROCE 28.6% and ROE 27.2% indicate excellent efficiency
💹 Valuation
- P/E Ratio: 68.6, much higher than industry average (26.7), suggesting overvaluation
- P/B Ratio: ~19.6 (Current Price / Book Value), expensive
- PEG Ratio: 0.88, indicating fair valuation relative to growth
- Intrinsic Value: Overvalued compared to peers, but supported by strong fundamentals
🏢 Business Model & Health
- Business Model: Retail and fashion, strong presence through Westside, Zudio, and other formats
- Competitive Advantage: Strong brand portfolio, expanding footprint, and robust consumer demand
- Overall Health: Financially strong with consistent growth, though valuations are stretched
🎯 Entry Zone Recommendation
- Entry Zone: Attractive near 3,500–3,600 ₹ levels (close to DMA 50)
- Long-Term Holding: Suitable for growth investors; dividend yield (0.14%) adds minimal stability
✅ Positive
- Strong quarterly PAT growth (660 Cr vs 451 Cr)
- High ROCE (28.6%) and ROE (27.2%) show efficiency
- DII holdings increased (+1.53%), showing domestic institutional support
⚠️ Limitation
- P/E ratio significantly higher than industry average
- P/B ratio expensive compared to peers
- Dividend yield is very low (0.14%)
📉 Company Negative News
- FII holdings decreased (-1.19%), showing reduced foreign investor confidence
- Technical indicators (RSI 38.5, MACD -117) suggest weak momentum
📈 Company Positive News
- DII holdings increased (+1.53%), showing strong domestic support
- Quarterly PAT improved significantly (660 Cr vs 451 Cr)
🏭 Industry
- Retail industry P/E: 26.7, much lower than TRENT’s valuation
- Sector demand driven by consumer spending and brand expansion
🔎 Conclusion
- TRENT is financially strong with consistent profitability and robust returns
- Valuation is expensive compared to industry peers, but PEG suggests growth potential
- Entry near 3,500–3,600 ₹ offers better risk-reward; suitable for long-term investors focused on retail growth