TRENT - Swing Trade Analysis

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

Swing Trade Rating: 3.5

📊 Analysis Summary

TRENT is a high-growth retail stock currently in a deep technical correction, making it a speculative swing trade candidate. While fundamentals remain strong, the extremely high valuation and recent profit decline suggest caution. A short-term bounce is possible due to oversold technicals, but conviction is low without confirmation.

✅ Strengths Supporting a Swing Trade

RSI: 28.1

Deeply oversold — potential for technical rebound.

MACD: –174

Bearish but may be bottoming — watch for crossover.

ROCE: 30.7% & ROE: 30.1%

Exceptional capital efficiency and profitability.

PEG Ratio: 0.52

Growth-adjusted valuation is reasonable despite high P/E.

Volume Above Average

Current volume (13.1L) exceeds 1-week average (11.9L) — signs of accumulation.

DII Holding ↑ 1.22%

Domestic institutions are buying the dip.

⚠️ Risks to Watch

P/E: 124 vs Industry PE: 47.6

Extremely overvalued — priced for aggressive growth.

PAT Decline: ₹497 Cr. → ₹312 Cr.

Quarter-on-quarter drop in profits — weak earnings momentum.

Trading Below DMA 50 & 200

Technically bearish — trend reversal not confirmed.

FII Holding ↓ 1.26%

Foreign investors exiting — sentiment negative.

Dividend Yield: 0.10%

Not attractive for income investors.

52W Index: 13.3%

Underperformance over the year — weak relative strength.

🎯 Optimal Entry Price

Entry Zone: ₹4,850–₹4,950

Near recent support and RSI oversold level — wait for bullish confirmation.

🚪 Exit Strategy (If Already Holding)

Exit Target: ₹5,450–₹5,600

Near DMA 50/200 resistance — ideal zone to book profits.

Stop Loss: ₹4,700

Below recent low — protects against further downside.

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