Competitive pressures weigh on Trent stock

Shares of retail major fall over 14% after decline in revenue growth for March qtr

- RAM PRASAD SAHU

The stock of India's largest listed pureplay retail major Trent was down 14.76 per cent at close on Monday after a fall in revenue growth for the March quarter of 2024-25 (Q4FY25).

The sales growth trajectory has been on a decline over the last few quarters, which, coupled with falling operational metrics, higher competitive intensity, and expensive valuations, has seen the stock crack about 44 per cent since its 52-week highs in October last year.

Despite the correction, the stock has delivered a 21 per cent return, comfortably beating the Nifty 50, which is down 1.5 per cent over this period.

While the company's March quarter revenue growth rate at 28 per cent over the year-ago quarter is expected to be ahead of its peers and comes at a time when the discretionary segment is weak, the trajectory is coming off its peaks.

Most brokerages had pegged the growth rate at 36 per cent.

After hitting a high of 56 per cent in the June quarter last year, revenue growth has trended down for four consecutive quarters now.

Like-for-like growth, which has also been moderating, is expected to be lower than the high single-digit rate achieved in the December quarter.