Hi Kunal, This question no one can answer for you except yourself. Buying decision is relatively easy then a sell decision. It will depend on what is your time horizon and goal for investing in Trent. Yes valuation are high for almost every business this time, if you do not have a better idea with good valuation then you can consider Trent after studying last 2-3 years annual report and presentations. Please also study ABFRL, Shopper Stop, V Mart retail, V2 retail(looks good) and retail industry overall.
Please consider a significant move by the National Stock Exchange (NSE),Trent will be added to the prestigious Nifty 50 index, effective from September 30. This reshuffle highlights the growing importance of Trent, known for its strong retail presence. Trent and BEL are expected to see net inflows of approximately $470 million and $335 million, respectively, after adjusting for Next 50 exclusions as per yesterdays ET. Addition to NIFTY 50 should results in buying of Trent by all NIFTY 50 Mutual funds and ETFs as per their mandates. These funds will sell Divy’s Lab and LTI mind tree (which will exit the Index) and replace them by Trent and BEL. I think Trent stock will be more stable and less volatile now, being a part of NIFTY 50.It will be bought regularly by NIFTY 50 index funds and ETFs for retail SIP investors according to its weightage.
Caution-You need to track it every Quarter for earning growth, because if it gets removed from the Index then there will be sudden selling by all Index funds, also after the initial surge, there might be a temporary pullback as some investors may take profits. Please also consider the following
Factors Affecting Price Movement
Trent Ltd’s financial performance, growth prospects, and market share will continue to be crucial determinants of its stock price. The performance of the retail sector as a whole will also influence Trent Ltd’s stock. Broader market trends, economic indicators, and interest rate changes can impact the stock’s price. The weight of Trent Ltd in the Nifty 50 will also play a role. A higher weight could lead to more significant price movements. Overall, Trent Ltd’s inclusion in the Nifty 50 is expected to have a positive impact on its stock price. The company’s strong fundamentals and the prestige associated with being a part of the Nifty 50 are likely to support upward price movement. However, it’s important to note that market conditions and company-specific factors can influence the actual price trajectory.
Disclosure: This analysis should not be considered as buy or sell recommendation. I am invested in Trent for last 20 years at very low levels. My views are biased and my knowledge is limited. I am not an Expert and nor a SEBI registered advisor.
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