Trent’s share price is seeing some intra-day relief ahead of its earnings after the massive 6% plus cut seen in trade on Tuesday- February 4. The stock was under pressure after Reliance Retail relaunched the Chinese brand Shein. This was mainly due to concerns about competition as the app for the Chinese brand, Shein, clocked over 10,000 downloads as soon as it went live on Google Stores.
The Trent share price had seen smart gains on Budget day after Finance Minister Nirmala Sitharaman’s income tax announcements sparked a rally in consumption-themed plays. However, over the last 1-month time frame, the share price of Trent is down nearly 17%. Many market observers and brokerage houses see opportunities in the stock over the long term.
Trent share price Vs Nifty
A close analysis of the Trent share price indicates that the stock is down over 17% in 2025 so far. However, in a 6-month time frame, Trent is up nearly 10% and delivered over 93% returns to investors over 1 year. In the same period, the Nifty has delivered 9% gains in the last 1 year. Nifty’s 6-month returns are in the red zone, down 1%.
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The big question therefore is what’s the right investment approach for Trent, given the share price trajectory. Deven Choksey, Managing Director of DRChoksey FinServ is upbeat on the fundamentals but considers the valuations a tad higher. According to him, “Trent is a good company with strong fundamentals and growth opportunities. However, its current share price has a discounted forward premium much in advance. Retail business is competitive, and paying a premium may require a longer wait. Moderation in valuation is needed.”
He is quite categorical and asks investors to “watch out for moderation in the premium valuation”, of not just Trent but most plays in the retail business space, given the steep competition.
Shein- competition rising in retail space
The relaunch of Shein has no doubt increased competition in the retail space.
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