Multibagger Tata Group stock in correction mode, time to buy?

Shares of Trent, which came under intense pressure recently on US President Trump's trade tariffs and Q4 business updates, are expected to reach a price target of Rs 6609 in 12 months, according to Mirae Asset Sharekhan.The brokerage expects Trent to continue strong momentum in Q4 earnings. Trent is likely to report a 28% rise in net sales at Rs 4,079 crore in Q4 against Rs 3187 crore in March 2024 quarter. EBITDA margin is seen falling to 14.8% in the last quarter against 15% in the   March 2024 quarter.

Profit is seen falling nearly 6% to Rs 272 crore in Q4 of the last fiscal  from Rs 289 crore in the March 2024 quarter. 

The Tata Group stock has also received a buy call Ventura Securities. The brokerage sees the stock at Rs 6,300 level in 24 months. 

The brokerage said Trent has established itself as a leader in Asia in terms of sales growth and inventory efficiency, achieving a remarkable 45 per cent sales CAGR from FY23 to FY25. 

According to the brokerage, the retailer, is expanding its footprint by entering new categories such as beauty and innerwear, while also strengthening its online presence. Westside currently operates 238 stores, and Zudio has 635 stores. Moreover, Trent’s Star Bazaar joint venture with Tesco is focusing on enhancing operational efficiency to curb losses, Ventura noted.

On April 7, 2025, the stock fell 19% to hit an intraday low of Rs 4,491.75. Sentiment turned negative , following a fourth-quarter update showing slowing revenue growth in Q4 business update. 

Revenue growth at 28% was the lowest in four years. Revenue came in at Rs 4,334 crore in (Q4 FY25) against Rs 3,381 crore in the corresponding period last year. As of March 31, 2025, Trent's store portfolio included 248 Westside, 765 Zudio (including 2 in UAE) and 30 stores across other lifestyle concepts.

Global brokerage Goldman Sachs said Trent has accelerated the pace of Zudio store additions in FY25. This has a long-term potential for investors. 

Zudio has recorded a rise in market share in the value segment. The brokerage believes that Trent has the highest earnings growth potential in the Indian consumer coverage.

In the previous session, Trent stock ended 3.43% higher at Rs 4780.05. Market cap of the firm rose to Rs 1.69 lakh crore mark on BSE. 

Trent shares have climbed 252%, 273% and 933% in two years, three years and five years, respectively. However, it has lost 42% in six months and declined 27% in three months. The multibagger stock is neither oversold nor overbought on charts, with its RSI at 39.7. 

Trent stock is trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day 100 day, 150 day and 200 day moving averages. 

Trent stock hit a record high of Rs 8,345.85 on October 14, 2024. It has lost 43% since then.

Trent is engaged in retailing / trading of apparels, footwear, accessories, toys, games etc.