Trent Ltd: Is It a Deep Value Opportunity?

Trent Ltd has a deep value score of 17/100 (rated Very Weak). This score is calculated from three components

• Earnings Score: 3/40 — measures PAT growth momentum across quarters
• Underperformance Score: 14/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
• Quality Score: 0/25 — operational quality (margins, revenue growth, valuation)

Trent Ltd's quarterly profit (PAT) growth trajectory

• Latest Quarter PAT Growth (QoQ): -19%
• Previous Quarter PAT Growth (QoQ): +37%
• 2 Quarters Ago PAT Growth (QoQ): -12%
• PAT Acceleration: -3.5pp (profits are decelerating)

Trent Ltd is underperforming the market despite improving earnings — this is the core deep value thesis

• 1-Year Return vs Nifty 500: -21%
• 6-Month Return vs Nifty 500: +10%
• 3-Month Return vs Nifty 500: +2%
• Yet average quarterly PAT growth is +2% — earnings are improving
• The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.

Trent Ltd's earnings momentum is Decelerating — growth rate is slowing.

• PAT QoQ progression: -12% → +37% → -19% (2Q ago → 1Q ago → latest)
• Acceleration: -3.5pp

Trent Ltd's valuation metrics

• Price-to-Earnings (PE): 88.1x
• Price-to-Book (PB): 21.7x
• PEG Ratio: 1.4x

Trent Ltd's revenue and margin trends

• Latest Quarter Revenue Growth (QoQ): -6%
• Average Quarterly Revenue Growth: +1%
• Revenue Acceleration: -2.3pp
• Latest OPM Change: -1.8pp (margins contracting)
• Average OPM Change: +0.4pp

Trent Ltd key facts

• Sector: Textiles - Readymade Apparel
• Market Cap: ₹1.5 Lakh Cr
• Rank in Textiles - Readymade Apparel: #3 by value score
• Overall rank among all deep value stocks: #138

Trent Ltd shows limited deep value signals currently — score is 17/100 (Very Weak). Monitor for improvement.

• Value Score: 17/100 (Very Weak)
• Earnings: Not accelerating
• 1Y Underperformance: -21% vs Nifty 500

Other deep value stocks in Textiles - Readymade Apparel

• Aditya Birla Lifestyle Brands Ltd — Score 35/100, Weak
• Aditya Birla Fashion & Retail Ltd — Score 23/100, Weak, earnings accelerating

Textiles - Readymade Apparel deep value sector overview

• 3 deep value stocks in this sector
• Average value score: 25/100
• Avg PAT acceleration: -3.1pp
• Top pick: Aditya Birla Lifestyle Brands Ltd

Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.

The deep value score (0-100) combines three factors:

- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)

Higher score indicates a stronger contrarian research signal.