Recent Price Movement and Market Context
On 2 Feb 2026, Trent Ltd. closed at Rs.3674.35, down 1.64% on the day, extending its losing streak to four consecutive sessions. Over this period, the stock has declined by 4.44%, underperforming the Garments & Apparels sector by 1.51%. Notably, the share price is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
In contrast, the Sensex rebounded sharply after a negative start, gaining 525.30 points to close at 81,080.98, a 0.44% increase. Despite this broader market strength, Trent Ltd. has lagged significantly, with its one-year return at -40.64%, compared to the Sensex’s positive 4.55% over the same period.
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Valuation and Financial Metrics
Trent Ltd. currently holds a Mojo Score of 37.0 with a Mojo Grade of Sell, downgraded from Hold as of 1 Jul 2025. The company’s market capitalisation stands at Rs 1,32,643 crores, making it the second largest entity in its sector, representing 22.25% of the Garments & Apparels industry by market cap.
Despite a return on capital employed (ROCE) of 26.8%, the stock is considered very expensive, trading at an enterprise value to capital employed ratio of 17.7. This valuation is discounted relative to its peers’ historical averages but remains high in absolute terms. The price-to-earnings-to-growth (PEG) ratio is 4.3, indicating that the stock’s price growth is not aligned with its earnings growth trajectory.
Financially, the company reported flat results in the September 2025 quarter, which has contributed to the cautious market sentiment. However, profits have risen by 19% over the past year, and net sales have grown at an annual rate of 47.45%, with operating profit increasing by 76.65%, reflecting healthy long-term growth trends.
Sector Position and Institutional Holdings
Trent Ltd. holds a significant position within the Garments & Apparels sector, with annual sales of Rs 18,574.66 crores, accounting for 11.09% of the industry’s total. The company benefits from high management efficiency, demonstrated by a return on equity (ROE) of 19.25%, which is a positive indicator of capital utilisation.
Institutional investors hold 37.12% of the company’s shares, suggesting confidence from entities with extensive analytical resources. This level of institutional ownership often provides a degree of stability, although it has not prevented the recent price decline.
Comparative Market Performance
Over the last year, while the BSE500 index has generated a modest return of 4.50%, Trent Ltd. has underperformed markedly with a negative return of 40.64%. This divergence highlights the stock’s relative weakness amid a generally positive market environment. The sector itself has faced headwinds, with the NIFTY FMCG index also hitting a 52-week low on the same day, indicating broader pressures within consumer-facing industries.
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Technical Indicators and Price Trends
The stock’s current trading below all major moving averages signals a bearish technical outlook. The 52-week high for Trent Ltd. was Rs.6270, reached within the past year, underscoring the extent of the recent decline. The sustained fall over the last four days and the breach of key support levels have contributed to the new 52-week low.
While the Sensex’s 50-day moving average remains above its 200-day moving average, indicating a generally positive market trend, Trent Ltd.’s price action diverges from this pattern, reflecting company-specific pressures rather than broad market weakness.
Summary of Key Metrics
To summarise, Trent Ltd. exhibits a mixed financial profile with strong sales and profit growth, high management efficiency, and significant institutional backing. However, its valuation metrics and recent price performance have led to a downgrade in its Mojo Grade to Sell. The stock’s underperformance relative to the broader market and sector peers has culminated in the current 52-week low price of Rs.3674.35.
Investors and market participants will continue to monitor the company’s financial disclosures and market developments closely as the stock navigates this challenging phase.
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