Stock Performance and Market Context
On 20 Jan 2026, Trent Ltd. saw its share price fall by 2.89% during the trading session, reaching an intraday low of Rs.3820, marking the lowest level in the past year. This movement was broadly in line with the sector’s performance, as the Retailing segment declined by 2.83% on the same day. The stock is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling sustained downward momentum.
The broader market environment has also been challenging. The Sensex opened flat but subsequently fell sharply by 1,026.91 points, closing at 82,180.47, down 1.28%. This marked the third consecutive weekly decline for the index, which has lost 4.18% over the past three weeks. Despite this, the Sensex remains 4.84% below its 52-week high of 86,159.02, indicating some resilience in the broader market.
In contrast to the Sensex’s positive 6.63% return over the last year, Trent Ltd. has underperformed significantly, delivering a negative return of 37.05% during the same period. The stock’s 52-week high was Rs.6270, highlighting the extent of the recent decline.
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Valuation and Financial Metrics
Trent Ltd.’s valuation metrics reflect a premium positioning within its sector. The company’s Return on Capital Employed (ROCE) stands at a robust 26.8%, indicating efficient use of capital. However, this is accompanied by a high Enterprise Value to Capital Employed ratio of 18.7, suggesting the stock is priced expensively relative to the capital it employs.
Despite the elevated valuation, the stock trades at a discount compared to the average historical valuations of its peers. The company’s Price/Earnings to Growth (PEG) ratio is 4.6, which is relatively high and indicates that earnings growth expectations are factored into the current price.
Financial results for the quarter ended September 2025 were largely flat, which has contributed to the recent downgrade in the company’s Mojo Grade from Hold to Sell as of 1 July 2025. The current Mojo Score stands at 37.0, reinforcing the cautious stance on the stock.
Operational and Growth Indicators
Trent Ltd. continues to demonstrate strong operational metrics. The company’s Return on Equity (ROE) is a healthy 19.25%, reflecting effective management and profitability. Net sales have grown at an annualised rate of 47.45%, while operating profit has expanded by 76.65% over the same period, underscoring solid top-line and margin growth.
Institutional investors hold a significant stake in the company, with 36.81% of shares owned by entities with advanced analytical capabilities. This level of institutional holding often indicates confidence in the company’s fundamentals despite recent price weakness.
With a market capitalisation of Rs.1,40,307 crore, Trent Ltd. is the second largest company in the Garments & Apparels sector, representing 22.68% of the sector’s total market cap. Its annual sales of Rs.18,574.66 crore account for 11.24% of the industry’s revenue, highlighting its substantial market presence.
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Sector and Market Dynamics
The Garments & Apparels sector has experienced a downturn in recent sessions, with the retailing segment declining by 2.83% on the day Trent Ltd. hit its 52-week low. This sector-wide pressure has coincided with broader market weakness, as reflected in the Sensex’s recent losses and its current position below the 50-day moving average.
Trent Ltd.’s underperformance relative to the BSE500 index, which has generated a positive return of 4.98% over the past year, highlights the stock-specific challenges it faces despite the sector’s mixed performance.
While the stock’s price has declined significantly from its 52-week high of Rs.6270, the company’s underlying financials show continued growth in sales and operating profit, suggesting that the price movement is influenced by a combination of valuation concerns and market sentiment.
Summary of Key Metrics
To summarise, Trent Ltd.’s stock currently trades at Rs.3820, down 37.05% over the last year, with a Mojo Grade of Sell and a score of 37.0. The company maintains strong profitability ratios, including a ROCE of 26.8% and ROE of 19.25%, alongside significant institutional ownership of 36.81%. Despite these strengths, the stock’s valuation metrics and recent flat quarterly results have weighed on investor sentiment, contributing to the recent price decline.
Conclusion
The recent 52-week low in Trent Ltd.’s share price reflects a combination of sectoral pressures, broader market weakness, and valuation considerations. While the company continues to report solid financial performance and maintains a significant market position, the stock’s current trading levels indicate a cautious environment for investors within the Garments & Apparels sector.
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