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
- 1:2 Bonus Issue — Record date Jun 4 ✅ (executed)
- ₹2,500 Cr Rights Issue — Pending, creates overhang
- Store expansion — 1,286 stores (963 Zudio), 198 Zudio stores added in FY26
- 28% correction from 52W high — downside partly priced in
- 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