Trent’s shares fell on Thursday after the company’s reported a marginal miss on elevated expectations.
Revenue for the quarter increased by 39% to ₹4,157 crore from ₹2,982 crore during the same quarter last year. A CNBC-TV18 poll had pegged the revenue figure at ₹4,295 crore.
Net profit for the company stood at ₹335 crore, compared to a CNBC-TV18 poll of ₹428 crore. On a year-on-year basis, Trent’s bottomline grew by 47%.
Depreciation for the quarter stood at ₹197 crore from ₹152 crore during the quarter, while the share of Joint Venture profit fell to ₹5.7 crore from ₹25 crore last year. Both these factors impacted Trent’s profitability, along with higher taxes, which increased to ₹132 crore from ₹86 crore last year.
Brokerage firm Jefferies maintained its “hold” rating on Trent with a price target of ₹5,900. Jefferies’ price target implies a further 9.3% downside from Thursday’s closing levels on Trent.
Jefferies said that Trent missed elevated growth estimates even while growth remained strong during the quarter. The company also closed stores in both the key fashion formats.
The management though, remains confident of the growth opportunity, Jefferies said.
“It was into a downtrend yesterday, it fell significantly with a jump in volumes also. So, the current setup is weak, it has breached the long-term moving averages also. We should not anticipate the bottom, it is into continuation. It is likely to head lower further from here. let us wait for the consolidation but right now the trend on the Trent is clearly on the downside,” Vinay Rajani of HDFC Securities said.
Out of the 21 analysts that have coverage on the latest Nifty entrant, 13 of them have a “buy” rating, while four each have a “hold” and “sell” rating respectively.
Shares of Trent are trading 3.1% lower on Friday at ₹6,306. The stock has now corrected 25% from its recent record high of ₹8,345.
First Published: Nov 8, 2024 10:16 AM IST
