Tata Group Stocks: This Tata Stock Crashes by 19% while Experts Cut Target Price. Do You Own It?

Tata Group Stocks: This Tata Stock Crashes by 19% while Experts Cut Target Price. Do You Own It?

Selling pressure for Trent, a retail company within the Tata Group, surged due to exacerbating concerns surrounding tariffs from the U.S. along with worsened expert forecasts. The share price plummeted over 19%, with the stock approaching its yearly low of 4,700, which was recorded in April 2024.

Currently, Trent’s shares are priced at ₹4706.45 on the Bombay Stock Exchange: a 15.37% decline. During intraday trading, the stock price further nosedived 19.23% to settle at ₹4491.75.

What’s Driving Analysts Towards A Negative Sentiment On Trent?

Following the India Q1 FY2026 March quarterly business update and market-wide downturn, global brokerage Goldman Sachs turned negative on Trent. They cited lower-than-expected growth in sales as the primary reason, prompting them to lower their expected share price from ₹7,500 to ₹6,760.

Morgan Stanley also found the March quarter results unconvincing. While Trent’s sales growth year-on-year in Q4 stood at 28%, it lagged behind the 37% expansion witnessed in the December quarter. The company recorded standalone gross revenue of ₹4,334 crore which contradicted Morgan Stanley’s projection of 35% net revenue growth. Annual revenue growth of 39% for FY2025 also fell short against their 42% forecast.

What Experts Are Saying

Goldman Sachs mentioned that it is usual for Trent’s sales to taper off during the March quarter, but this time, the dip is unusually deeper. The 9.7% quarter-on-quarter drop is much sharper than the expected trend. This could imply lower demand or significant discounting to reduce inventory. Analysts suspect these trends will persist in the near term.

How Has The Stock Performed In The Past Year?

In a span of just six months last year, Trent’s stock provided over 119% returns. On April 15, 2024, it was trading at ₹3801.05 which was its 1-year low. From there, it skyrocketed to an all-time high of ₹8345.85 on October 14, 2024. However, the stock was not able to sustain that momentum and is now down approximately 44% from the peak.

Key Takeaways for Investors:

• The stock price tanked over 19% in a single day due to weak Q4 results combined with overall market sentiment.
• Goldman Sachs and Morgan Stanley have both slashed their target prices.
• Concerns are mounting regarding the company’s future performance due to stagnated sales growth.
• The stock has witnessed a 44% decline from its all-time high.
• Investors need to be diligent prior to making any moves.

Also Read : Tata Capital IPO: Everything You Should Know – Financials, Share Sale, Issue Size and Listing Date

Conclusion

A significant decline in customer sentiment for Trent, a stock of the Tata Group, has occurred due to the company’s dismal Q4 earnings coupled with negative expert scrutiny. This was further worsened by Goldman Sachs and Morgan Stanley’s international brokerage reduction in target price which soured investor’s sentiment further. Despite the company’s stunning returns in the past, the prevailing trends indicate a deceleration. Investors need to monitor the situation closely and re-assess their strategies before proceeding.