TRENT - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.0
| Stock Code | TRENT | Market Cap | 1,23,844 Cr. | Current Price | 3,482 ₹ | High / Low | 6,261 ₹ |
| Stock P/E | 65.8 | Book Value | 186 ₹ | Dividend Yield | 0.14 % | ROCE | 28.6 % |
| ROE | 27.2 % | Face Value | 1.00 ₹ | DMA 50 | 3,904 ₹ | DMA 200 | 4,526 ₹ |
| Chg in FII Hold | -1.19 % | Chg in DII Hold | 1.53 % | PAT Qtr | 660 Cr. | PAT Prev Qtr | 451 Cr. |
| RSI | 31.6 | MACD | -124 | Volume | 7,15,254 | Avg Vol 1Wk | 9,82,997 |
| Low price | 3,428 ₹ | High price | 6,261 ₹ | PEG Ratio | 0.84 | Debt to equity | 0.35 |
| 52w Index | 1.91 % | Qtr Profit Var | 40.6 % | EPS | 52.4 ₹ | Industry PE | 25.5 |
📊 TRENT shows moderate potential for swing trading. The fundamentals are strong with EPS (52.4 ₹), ROE (27.2%), and ROCE (28.6%). Debt-to-equity is low at 0.35, reflecting financial stability. However, valuation is stretched with a high P/E (65.8) compared to industry PE (25.5). Technical indicators are weak: RSI at 31.6 suggests oversold conditions, MACD (-124) signals bearish momentum, and the current price (3,482 ₹) is below both the 50 DMA (3,904 ₹) and 200 DMA (4,526 ₹), showing short-term weakness. Despite this, quarterly PAT improved from 451 Cr. to 660 Cr., indicating operational strength.
✅ Optimal Entry Price: Around 3,450–3,500 ₹ (near support levels).
🚪 Exit Strategy: If already holding, consider exiting near 3,900–4,000 ₹ (50 DMA resistance) unless strong breakout occurs.
🌟 Positive
- EPS of 52.4 ₹ indicates strong profitability.
- ROE (27.2%) and ROCE (28.6%) reflect efficient capital use.
- Quarterly PAT improved significantly from 451 Cr. to 660 Cr.
- DII holdings increased by 1.53%, showing domestic institutional support.
⚠️ Limitation
- High P/E (65.8) makes the stock expensive compared to peers.
- RSI and MACD indicate bearish momentum.
- Dividend yield is very low at 0.14%, unattractive for income investors.
- Stock trades below both 50 DMA and 200 DMA, signaling weakness.
📰 Company Negative News
- FII holdings decreased by -1.19%, showing reduced foreign investor confidence.
- Stock corrected sharply from its high of 6,261 ₹.
📈 Company Positive News
- Quarterly PAT surged, showing strong operational performance.
- DII inflows reflect domestic investor confidence.
- PEG ratio of 0.84 suggests fair valuation relative to growth.
🏭 Industry
- Industry PE is 25.5, much lower than TRENT’s 65.8, suggesting overvaluation.
- Retail sector outlook remains positive, supported by consumer demand and expansion strategies.
🔎 Conclusion
TRENT is a moderately suitable candidate for swing trading. Fundamentals are strong, but technical indicators show weakness and valuation is stretched. Traders may enter near 3,450–3,500 ₹ with a short-term target of 3,900–4,000 ₹. Risk management is essential due to high volatility, but strong profit growth and sector resilience provide confidence for potential upside.