---
title: "Trent Ltd — Can You Enter After the 28% Correction?"
ticker: "TRENT:NSE"
date: "2026-06-17"
tags: ["trent","retail","deep-dive"]
summary: "Trent analysis — 28% correction, P/E 90, PEG 2.47, promoter stable, FIIs decreasing, Zudio scaling. Entry zone ₹4,200-4,600. Verdict: Favorable with Caution."
model: "deepseek-chat"
---

# Trent Ltd — Deep Dive Analysis

**Date:** 17 June 2026
**CMP:** ₹2,989 (Screener) / ₹2,997 (TradingView)
**Model:** deepseek-chat

## Quick Snapshot

| Metric | Value |
|---|---|
| CMP | ₹2,989 (+3.16%) |
| 52W Range | ₹2,184 — ₹4,174 |
| Market Cap | ₹1,59,359 Cr |
| Stock P/E | 88.7x |
| Industry P/E | 51.4x |
| PEG Ratio | 1.50 |
| ROCE | 27.4% |
| ROE | 26.4% |
| Book Value | ₹144 |
| Debt/Equity | 0.33 |
| 1Y Return | -22.8% |
| Profit CAGR (5Y) | 110% |
| Sales (FY26) | ₹19,701 Cr |

## Technical Analysis — TradingView Live

**Signal: NEUTRAL**
- RSI(14): 66.22 — Neutral, upper end
- Price ABOVE all 9 MAs (EMA10: ₹2,844 to EMA100: ₹2,751)
- ADX: 13.79 — Low trend strength
- All 9 MAs = Buy. 3/11 Oscillators = Buy.

**Key Levels:** Pivot ₹2,793 | R1 ₹2,931 | R2 ₹3,047 | S1 ₹2,677 | S2 ₹2,538

**Performance:** 1W +7.5%, 1M +10.9%, 3M +24.8%, YTD +5%, 1Y -21%

## Delivery Analysis (14 days)

Avg Delivery: **36.6%** | Days >50%: **1/14**
- Pre-bonus (May 28-Jun 3): ~40.6% avg
- Post-bonus (Jun 4-16): ~34.5% avg
- Ex-bonus day (Jun 4): 25.6% — lowest
- Volume spike day (Jun 15, 2.2M shares): 35.9%

**Verdict:** No institutional accumulation signs. Weak hands buying recovery.

## Financials

### Revenue & Profit
- FY22→FY26: Sales 3,881→19,701 Cr (5x), PAT 250→1,968 Cr (7.9x)
- OPM improving: 15%→19%
- Growth slowing: 99%→55%→40%→18%

### Cash Flow (Strong ✅)
- 4 consecutive years of positive FCF
- FY26 CFO ₹2,630 Cr on PAT ₹1,968 Cr = 1.34x cash conversion
- Capex accelerating: ₹1,487 Cr (store expansion)

### Balance Sheet (Rock Solid ✅)
- Net Worth: ₹7,703 Cr
- D/E: 0.33
- Investments: ₹2,307 Cr

## Shareholding

| Holder | Jun '23 | Mar '26 | Trend |
|---|---|---|---|
| Promoters | 37.01% | 37.01% | 🟢 Stable |
| FIIs | 25.01% | 15.59% | 🔴 -44% from peak |
| DIIs | 15.81% | 22.19% | 🟢 +6.4% |
| Shareholders | 1,30K | 5,12K | 🟢 4x |

**Key insight:** FIIs selling = rotation to domestic hands. DIIs + retail absorbing.

## Catalysts

1. **1:2 Bonus Issue** — Record date Jun 4 ✅ (executed)
2. **₹2,500 Cr Rights Issue** — Pending, creates overhang
3. **Store expansion** — 1,286 stores (963 Zudio), 198 Zudio stores added in FY26
4. **28% correction** from 52W high — downside partly priced in
5. **Analyst consensus** mixed — avg target ₹3,123 (4% upside)

## Howard Marks Framework

| Criteria | Result |
|---|---|
| Earnings Yield > Risk-Free Rate | FAIL (1.13% vs 6.5%) |
| PEG < 1.0 | FAIL (1.50) |
| Positive MoS (Book Value) | FAIL (₹144 vs ₹2,989) |
| Price near EPV (<2x) | FAIL (2.2x) |
| ROCE > Cost of Capital | PASS (27.4% vs 12%) |

**Growth stock, not value play.** PEG 1.50 = fair, not cheap.

## Verdict: WAIT & WATCH

**Bull:** Business quality top-tier, cash flow machine, Zudio growth massive, DIIs accumulating.
**Bear:** 88.7x P/E for slowing growth, FIIs selling, weak delivery, rights overhang.

**Entry:** ₹2,550-2,650 (on dip) or ₹3,100+ (on confirmed breakout)
**SL:** ₹2,450 (dip) / ₹2,900 (breakout)
**Targets:** ₹3,100 / ₹3,300