Growth worries, competitive pressures weigh on Trent stock performance

Elara Securities expects gross margin for the March quarter to come down by 71 basis points quarter-on-quarter and 129 basis points year-on-year due to seasonality

The stock of India’s largest listed pure play retail major Trent was down 14.76 per cent at close on Monday after a fall in revenue growth for the March quarter of 2024-25 (Q4FY25). The sales growth trajectory has been in a declining trend over the last few quarters, which, coupled with falling operational metrics, higher competitive intensity, and expensive valuations, has seen the stock crack about 44 per cent since its 52-week highs in October last year. Despite the correction, the stock has delivered a 21 per cent return, comfortably beating the Nifty 50, which is down 1.5 per cent