Trent Stock Crash: Tata Group company's stocks fell sharply, fell by 11%

News Topical, Digital Desk : Stock Crash: Shares of Tata Group's fashion and lifestyle company Trent Limited fell by 9% in early trade on Friday. This decline has come after the company warned of slow growth in its Annual General Meeting (AGM).

At the AGM, Trent expected growth of around 20% in the first quarter of FY26, which is much lower than the 35% compounded annual growth rate (CAGR) achieved by the company in the last five years.

Signs of slow growth Earlier, the company had described the 25% earnings CAGR as sustainable in an analyst meet. Following this sign of slow growth, brokerage firm Nuvama has reduced Trent's earnings growth estimates for FY2026 and 2027 by 5% and 6% respectively. Also, the company's EBITDA estimates have also been cut by 9% and 12%. Nuvama has reduced Trent's rating from the earlier "Buy" to "Hold" and reduced the target price from ₹6,627 to ₹5,884. On Friday, Trent shares opened at ₹5,675, which is about 9% lower than the previous close price. 

What should investors do? Analysts believe that the slowdown in Trent's growth rate has affected investor expectations. Although the company has performed strongly in the past years and many brokerage houses still recommend buying Trent shares, negativity has increased in the market after the recent AGM update. Trent Limited shares have seen volatility in the last few months. In April 2025 also, the shares fell after the company's Q4 update, but despite this, the company has given good returns to investors in the long run.

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