Trent Shares Adjust 33% Lower as Stock Turns Ex-bonus; Analysts Remain Bullish on Zudio and Westside Retailer

Mumbai, June 4: Shares of Tata Group retail major Trent Limited appeared to plunge more than 33% in Thursday’s trade after the stock turned ex-bonus for its recently announced 1:2 bonus issue. However, the sharp decline was largely technical in nature and reflected the adjustment in share price following the bonus allotment rather than any erosion in shareholder value.  

The stock was trading around ₹2,782 compared with its previous close of ₹4,257.6. Under the bonus issue, shareholders will receive one additional equity share for every two shares held as of the record date. As a result, the share price was adjusted downward to account for the increased number of outstanding shares.  

Bonus adjustment, not a crash 

Stock traded 2% lower even as analysts remained optimistic about the growth trajectory of Trent’s value-fashion chain Zudio and its flagship Westside format. Source: NSE 

Market experts noted that the apparent 33% decline should not be interpreted as a crash. In a bonus issue, the total value of an investor’s holding remains broadly unchanged immediately after the adjustment, even though the per-share price falls proportionately. Trent’s ex-bonus price adjustment was in line with the mechanics of its 1:2 bonus issuance, the first such corporate action by the company in decades. 

On an adjusted basis, however, the stock was still down about 2% during the session, making it one of the weaker performers on the Nifty 50 index.  

Analysts remains positive 

Global brokerage HSBC maintained its constructive view on the retailer and reiterated its “Buy” rating. The brokerage has a target price of ₹4,910 on the adjusted stock and sees further upside supported by Trent’s strong execution track record and expansion plans.  

Analysts remain optimistic about the growth trajectory of Trent’s value-fashion chain Zudio and its flagship Westside format. The company has been one of the strongest performers in India’s organised retail space, benefiting from rising discretionary spending and rapid store expansion across the country.  

Focus remains on growth 

Investor attention is likely to remain on Trent’s operational performance rather than the ex-bonus adjustment. The company recently reported healthy growth in revenue and earnings, while continuing to expand its retail footprint through Zudio, Westside and other formats. 

The bonus issue is expected to improve stock liquidity and make shares more accessible to retail investors. While the ex-bonus adjustment may temporarily distort price comparisons, analysts continue to view Trent as one of the key beneficiaries of India’s long-term consumption growth story. 

 Source: https://www.nseindia.com/get-quote/equity/TRENT/Trent-Limited