Trent Stock Plunges 6%! Tata Retail Giant's Q2 Misses Expectations? Analysts Weigh In With Shocking Targets!

Trent Limited, a prominent Tata Group retail company, saw its shares plummet by over 6% on Monday, reaching a 16-month low. This significant decline, the largest intraday fall since July 4, was triggered by analyst concerns regarding a weak demand environment that impacted the company's key growth metrics in the September quarter.

Trent reported an 11.3% year-on-year increase in consolidated net profit to ₹376.86 crore and a 15.9% rise in revenue from operations to ₹4,817.68 crore for the second quarter of the 2025-26 fiscal year. Profit before interest, depreciation, and tax (PBIDT) also saw a healthy 21.1% jump to ₹843.53 crore. Notably, consolidated revenues do not include the Trent Hypermarket business's direct revenue but incorporate its profitability share.

Analyst Views: * Motilal Oswal noted a sharp slowdown in Trent's growth due to weak like-for-like (LFL) sales amid subdued demand, though strong cost controls supported EBITDA growth. They reiterated a 'Buy' rating with a target price of ₹6,000. * Antique Stock Broking found Q2 profitability exceeded expectations, driven by revenue growth. However, LFL sales were affected by muted consumer sentiment and unseasonal rains. They retained a 'Buy' rating but lowered the target price to ₹6,650 from ₹7,031. * Centrum Broking observed moderating revenue growth and improving margins despite slow same-store sales. They maintained a 'Neutral' rating with a target price of ₹4,800, highlighting the need to watch new formats for future growth.

Impact The stock's sharp fall and divergent analyst views suggest investor caution regarding the retail sector's immediate growth prospects, potentially impacting sentiment for similar consumer discretionary stocks. The varied target prices indicate differing interpretations of the company's future growth drivers. Rating: 7/10

Difficult Terms: * Like-for-like (LFL) sales: A retail metric comparing sales from the same stores over comparable periods, excluding sales from new or closed stores, to measure organic growth. * Subdued demand environment: A period where consumer spending and overall economic activity are low, leading to reduced sales for businesses. * EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. A measure of a company's operating performance. * Consolidated net profit: The total profit of a parent company and all its subsidiaries, after accounting for inter-company transactions. * Equity method: An accounting technique used to account for an investment in an associate or joint venture, where the investor recognizes its share of the investee's net income or loss.