Trent Ltd Stock Drops 9% After Block Deal of ₹882 Crore and Q2 Earnings Miss Estimates by ₹109 Crore

Trent Ltd, part of the Tata Group’s retail division, faced a significant market reaction following the announcement of a block deal involving 13.7 lakh shares, totalling ₹882 crores. Despite this substantial transaction, the company’s stock dropped by 9%, primarily due to a second-quarter earnings report that failed to meet analyst expectations.

For the quarter ending September 30, 2024, Trent reported a 47% year-on-year increase in net profit, which rose to ₹335 crore. However, this figure fell ₹109 crore short of analysts’ forecasts, which had anticipated a profit of ₹444 crore—a 53.2% jump. The company also reported a 39% rise in revenue, reaching ₹4,157 crore, but this too was below the projected 51% growth, which would have translated to ₹4,365 crore in revenue.

ALSO READ| Trent Ltd Posts 47% Net Profit Surge to Rs 335 Crore in Q2 Despite 7% Stock Dip

These disappointing results led to a sharp decline in Trent’s stock price, which traded at ₹6,484.95 per share by 3 p.m. on Thursday, reflecting a loss of 6.76%. The company’s stock had seen a promising increase earlier this year, but the earnings miss and missed expectations are now raising questions about the sustainability of its growth.

ALSO READ| Page Industries Declares ₹250 Dividend per Share after Q2 Results; Stock Up 15% in 2024

Despite the challenges, Trent’s management remains positive about the company’s prospects, citing ongoing efforts to expand its store presence and solidify its position in the market. However, given the underwhelming performance in the second quarter, investors are reassessing their expectations, leading to a cautious outlook for Trent Ltd in the near term.

[Disclaimer: The content is intended for informational purposes and should not be construed as financial advice. Always consult with a professional before making investment decisions.]