Slowing growth and high valuations weigh on Trent stock performance

Trent shares fall 12% on weak Q1 growth; brokerages cite valuation mismatch, slowing momentum in fashion, and downgrade targets despite optimism on new verticals

The stock of the country’s largest apparel retailer by market capitalisation, Trent, slid about 12 per cent to close at ₹5,448 per share on worries of a moderation in growth rates and expensive valuations.

 

The stock has underperformed the benchmarks over the past year on slowing growth rates and downgrades that have dented investor sentiment. 

 

The near-term negative trigger is the lower-than-expected growth print for the June quarter.

 

In its pre-quarter update, the company reported Q1 standalone revenues at ₹5,061 crore which translates into a 20 per cent growth over the year-ago quarter.

 

Growth was also lower on a sequential