Stock Price Movement and Market Context
On 21 Jan 2026, Trent Ltd.’s share price touched an intraday low of Rs 3,694.45, representing a 3.61% drop during the trading session. The stock has declined for two consecutive days, accumulating a total loss of 5.78% over this period. This downturn contrasts with the Sensex, which fell by 0.76% to 81,552.46 points, continuing its three-week losing streak with a cumulative decline of 4.91%. Notably, Trent underperformed its sector by 2.28% today, signalling sector-specific headwinds alongside broader market pressures.
Trent’s current trading levels are below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, underscoring the prevailing bearish momentum. The stock’s 52-week high stands at Rs 6,270, highlighting the extent of the recent correction.
Financial Performance and Valuation Metrics
Despite the stock’s price decline, Trent Ltd. reported a 19% increase in profits over the past year, reflecting operational resilience. However, the company’s price-to-earnings growth (PEG) ratio is elevated at 4.4, indicating that the stock’s valuation may not be fully aligned with its earnings growth trajectory. The return on capital employed (ROCE) remains robust at 26.8%, yet the enterprise value to capital employed ratio is high at 18.2, suggesting a relatively expensive valuation compared to historical averages.
Trent’s market capitalisation currently stands at Rs 1,36,258 crores, making it the second-largest company in the Garments & Apparels sector, accounting for 22.46% of the sector’s total market value. Annual sales of Rs 18,574.66 crores represent 11.25% of the industry’s revenue, underscoring the company’s significant market presence.
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Comparative Performance and Market Sentiment
Over the last twelve months, Trent Ltd. has underperformed significantly, delivering a negative return of 34.93%, in stark contrast to the Sensex’s positive return of 7.54% and the BSE500’s 5.77% gain. This divergence highlights the stock’s relative weakness within the broader market context.
The company’s Mojo Score currently stands at 37.0, with a Mojo Grade of Sell, downgraded from Hold as of 1 Jul 2025. The Market Cap Grade is rated at 1, reflecting the stock’s valuation and market capitalisation metrics. These ratings indicate a cautious stance based on recent performance and valuation considerations.
Operational and Growth Indicators
Trent Ltd. continues to demonstrate strong management efficiency, with a return on equity (ROE) of 19.25%. The company has achieved healthy long-term growth, with net sales expanding at an annual rate of 47.45% and operating profit increasing by 76.65%. Such figures suggest solid underlying business fundamentals despite the recent share price pressures.
Institutional investors hold a significant 36.81% stake in Trent Ltd., reflecting confidence from entities with extensive analytical resources. This level of institutional ownership often provides a stabilising influence on stock performance.
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Sector Position and Industry Context
Within the Garments & Apparels sector, Trent Ltd. holds a commanding position as the second-largest company by market capitalisation, trailing only Avenue Supermarts. Its substantial contribution to sector sales and market value underscores its importance in the industry landscape.
However, the stock’s recent price trajectory and valuation metrics suggest that market participants are factoring in a cautious outlook. The flat financial results reported in September 2025 may have contributed to the tempered sentiment, despite the company’s strong return on capital and growth rates.
Summary of Key Metrics
To encapsulate, Trent Ltd.’s stock has declined to Rs 3,694.45, its lowest level in the past year, amid a broader market downturn and sector-specific pressures. The stock’s valuation remains elevated relative to capital employed, while its earnings growth and profitability metrics remain robust. Institutional ownership and strong management efficiency provide a foundation of stability, even as the stock navigates a challenging period.
Investors and market watchers will note the divergence between Trent’s operational performance and its share price movement, reflecting a complex interplay of market dynamics and valuation considerations.
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