TRENT - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.3

Here’s a detailed evaluation of TRENT Ltd based on your stock data

📊 Core Financial Performance

Profitability

ROE: 30.1%, ROCE: 30.7% — exceptionally strong return ratios, far ahead of industry averages

EPS: ₹43.5 — robust earnings base, reflects operational effectiveness

Growth & Earnings

PAT Qtr: ₹312 Cr vs. ₹497 Cr Prev Qtr — sequential dip, yet year-on-year trend may remain solid

Quarterly Profit Variation: 18.6% — relatively low compared to peers, but consistency is visible

Leverage & Liquidity

Debt-to-Equity: 0.41 — moderate, manageable leverage

Strong profitability and brand positioning likely provide healthy cash flows

📈 Valuation Metrics

Metric Value Interpretation

P/E Ratio 124 Extremely high — premium valuation, pricing in future scalability

P/B Ratio ~32.5 Reflects brand power and market trust more than asset base

PEG Ratio 0.52 Despite high PE, PEG shows growth-adjusted valuation is reasonable

Dividend Yield 0.10% Minimal income generation — clearly focused on growth over payouts

🏬 Business Model & Competitive Edge

Category: Fashion & Retail (part of Tata Group)

Portfolio: Brands like Westside, Zudio — strong in mass-market & mid-premium fashion

Edge

High brand loyalty

Rapid expansion via Zudio format (low-cost apparel stores)

Leveraging digital and omni-channel strategy

Challenges: Premium valuation, susceptible to consumption cycles and fashion trends

📉 Technical & Sentiment Analysis

RSI: 28.1 — heavily oversold, short-term correction may be close to bottoming

MACD: -174 — bearish, but could signal a reversal if fundamentals stay intact

Trading Below DMA 50 & DMA 200 — technically weak but may present opportunity

Volume: Strong, shows active participation despite recent drawdown

🎯 Entry Zone & Investment Strategy

Suggested Entry: ₹4,600–₹4,800 — near recent support levels and just below oversold RSI zone

Long-Term View: Potential upside toward ₹6,500–₹7,000 over 12–18 months if trend resumes

Investor Type Fit: Suited for growth investors comfortable with volatility and premium valuations

Caution: Monitor fashion retail trends, consumption data, and margin sustainability

Let me know if you’d like a sentiment comparison with Avenue Supermarts or Shoppers Stop — could paint an interesting picture for portfolio rotation in retail.

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