Slowdown woes continue to trouble Tata’s Trent

TATA GROUP FIRM Trent reported its slowest growth in at least 16 quarters in Q2, triggering a meltdown on the bourses on Monday.

- VIVEAT SUSAN PINTO

The stock slumped over 7% on the BSE to %4,282.35 apiece, after the company saw Q2 topline growth come in at 11.3% on Friday, below its revenue growth target of 25% set in July during its annual general meeting.

The weak performance triggered a wave of downgrades and target cuts from brokerages as they turned cautious on the company citing competitive pressures. “Consumption trends remain weak, with increasing competition, cannibalisation, and aggressive expansion in tier-2 and tier-3 markets,” brokerage Citi said on Monday, while downgrading the stock to ‘sell’.